Shell India to challenge order by tax authorities
Feb 04 2013 , Mumbai
The company said a Rs 152.20 billion adjustment has been proposed in the transfer pricing order by the tax authorities on account of issue of equity shares by Shell India to its sole parent Shell Gas BV in March 2009.
Shell said 87 million shares had been issued at Rs 10 each, but the order by the tax authorities had valued these at Rs 183 per share.
"Taxing the money received by Shell India is in effect a tax on foreign direct investment (FDI), which is contrary not only to law but also to the spirit of the recent global trip by the Finance Minister," Shell's India Chairman Yasmine Hilton said in a statement.