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INDIA BUSINESS WORLD - 16th April To 30th April - 2009
ORACLE ASKED TO PAY 230CR TAX BY THE GOVERNMENT
The government has asked IT services solutions vendor Oracle India to pay over Rs 230 crore as tax on the royalty paid to its US parent as franchise fee and for its receivables from services. While Oracle did not respond to emailed queries on the issue, a company spokesperson said she would not comment on matters related to taxes. The Central Board of Excise and Customs has asked the company to explain why it did not pay service tax of more than Rs 225 crore along with education cess of about Rs 5 crore for the period between 2003 to 2008, an official said. The tax department has said that the company "had intentionally and willfully suppressed the facts of providing and receiving impugned taxable services and collection of the impugned value of such taxable services".
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