Now Samsung Asked to Pay Over $200 mn in Taxes in India

Tax CalculateKorean electronics major Samsung has been asked to pay up over $200 mn in taxes by India in its ongoing effort to mop up taxes for the year, according to a new report. “The show-cause notice issued on Saturday claims that the firm did not pay taxes on Rs 1,139 cr of income for the assessment year of 2006-07,” reported Livemint.

A Samsung official quoted in the report said the company is yet to receive such a notice.

Finance Minister P Chidambaram had said earlier this week that the tax department will send notices to nearly 35000 assesses. The government wants to collect Rs 5.6 lakh cr for the fiscal year 2012-13 in direct taxes.

Samsung is one of many companies in India that have been asked to pay tax dues. Many multi national companies, including Finnish phone maker Nokia, search giant Google and oil company Shell have been asked to pay tax dues and penalties to the department.

For the assessment year 2007-08, Google was asked to pay $14.5 mn in taxes and fine. Nokia has been asked to pay over $370 mn in taxes while similar tax demands have been made on other companies.

The companies usually end up choosing to go to court citing differences in interpretation of various laws and the cases tend to drag on for a while.

Recommended Read: Why Eric Schmidt Should Meet P Chidambaram

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