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IT dept likely to go slow on Maruti; more raids likely on tax-evading MNCs

The investigations into tax evasion by Maruti Udyog Limited seem to have hit a major stonewall with high-level intervention from the industry ministry urging taxmen not to be harsh on the Rs 85 billion carmaker.

Industry ministry mandarins are believed to have urged the finance ministry to instruct the taxmen to go slow.

Maruti apparently wrote to the government complaining that the income tax department had been rude to its employees during the surveys at the company's premises.

However, senior IT Department officials said, the investigations are continuing and the exact amount of evasion on tax deduction at source is presently being ascertained. The company is alleged to have evaded tax to the tune of Rs 1 billion.

Incidentally, Maruti has still not responded to the surveys conducted on the company's premises on March 12.

While stating that the IT department has not received any communication from the finance ministry as yet, the officials feel that Suzuki is now employing ''pressure tactics'' to stall investigations and evade around Rs 1 billion as tax.

Prior to this, the Japanese Chamber of Commerce and Industry had reportedly requested the department not to prosecute the Japanese firms since they had agreed to disclose the salary packages of their expatriate employees.

It had also provided a list of 90 companies to the department that are willing to disclose their salary packages and pay up the dues. However, Suzuki Motor Corporation does not figure in the list of companies willing to make full disclosures.

Meanwhile, the official stated that the IT departments of Delhi, Gurgaon and Faridabad are working jointly to crackdown on major corporate houses who are evading taxes by not declaring the income of their foreign employees in Indian operations.

Summons have already been issued to all senior directors, including MUL chairman Yoshio Saito on suspicion of tax evasion via under-declaration of their foreign income received in Japan.

UNI

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