Is the government even alive to the situation? Delhi High Court asks the Centre on non-payment of taxes by Facebook

• Hearing the petition filed by KN Govindacharya in relation to non-payment of taxes by foreign internet companies, especially Facebook and Google in India, the Delhi High Court today asked the Union government about the same.

• Arguing for the Petitioner, Mr. Virag Gupta submitted that the statement made in the affidavit is wrong and that any entity, irrespective of the fact where it has a fixed establishment in India or not is liable to pay service tax.

• The counsel for petitioner also referred to a chart that was filed previously in the proceedings and demonstrated as to how Facebook earns by selling users data and does not pay taxes in India.

• Meanwhile, the Counsel appearing for Facebook India submitted that it is established in a special economic zone in Hyderabad and hence is not liable to pay tax.

• The High Court also ordered that the Additional Solicitor General be present on behalf of the Government on the next date.

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