I-T department slaps ONGC Videsh with Rs 76.66-billion service tax demand

I-T department slaps ONGC Videsh with Rs 76.66billion service tax demand Noor Arora The tax department has slapped ONGC Videsh Ltd a service tax demand of Rs 76.66 billion on remittance the firm makes to its overseas subsidiaries for past one decade, sources in know of the development said. OVL, the overseas arm of state-owned Oil and Natural Gas Corp (ONGC), has stakes in 41 projects in 20 countries spanning from Venezuela to New Zealand. For the operations of these projects, the local units and joint ventures would raise a demand for money on the parent, OVL, which would transmit the funds. The service tax department now contends that the overseas units are rendering a service to OVL and as such the company is liable to pay service tax at the full rate, sources said.