Income Tax lens on Google, Amazon & Apple for likely Rs 5,000 crore demand

The Income Tax (I-T) Department is investigating the Indian units of Apple, Google and Amazon over possible non-payment of tax. In connection with a probe that began in 2021, the authorities have sought detailed explanations from the tech behemoths on their transfer pricing (TP) practices, according to people aware of the matter.

The department is eyeing a tax demand of over Rs 5,000 crore and has rejected many of the justifications provided by these companies, the people said.

The Indian arms involved in the matter are Apple India Pvt Ltd, Amazon Seller Services India Pvt Ltd and Google India Digital Services Pvt Ltd.