Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

Shell To Contest India Income Tax Notice

change text size

NEW DELHI - Royal Dutch Shell PLC's India unit Monday said it would challenge a tax department notice which claims that it underpriced a sale of shares to an overseas group company by $2.7 billion.

"Recent media reports on tax evasion are baseless, and Shell India will challenge this order strongly and is evaluating all options for redress," the company said in a statement.

It didn't reveal how much it has been asked to pay in taxes.

The Mint newspaper reported Sunday that the Indian income tax department has charged Shell India of under-pricing the sale of 870 million shares by Shell India to Shell Gas BV in March 2009.

The shares were issued by Shell India at 10 rupees ($0.18) a share, but the income-tax authorities peg the deal at 183 rupees a share.

Shell, however, said "there are no provisions under the income tax law for such revaluation."

"Taxing the money received by Shell India is in effect a tax on foreign direct investment, which is contrary not only to law but also to the spirit of the recent global trip by the (Indian) finance minister to attract further FDI into India," Yasmine Hilton, chairman of Shell Group of Companies in India, said in a statement.

Income tax authorities couldn't be reached for comment.

Copyright (c) 2012 Dow Jones & Company, Inc.

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
robert green | Feb. 4, 2013
Now it is up to the Indian government to PROVE that this is not just another attempt to extort money from a foreign investment company.


Related Companies

Most Popular Articles