Income Tax Department conducts survey at Truecaller offices over transfer pricing

The Income Tax Department conducted surveys at the offices of Truecaller, the Swedish company behind the widely used caller identification app, in Mumbai and Gurugram on Thursday, as per reports.

According to sources close to the matter, the survey sought to gather information and examine documents related to potential tax evasion, specifically focusing on transfer pricing practices.

In response to the development, Truecaller confirmed the action by the Income Tax Department but clarified that the company is not under any tax investigation in India beyond routine audits.

The firm emphasized its commitment to transparency as a publicly listed entity, highlighting that it has consistently met its tax obligations in India and other regions of operations.

Truecaller stated that its financial statements have consistently received unqualified audit opinions and reiterated its adherence to international transfer pricing norms. "Our intra-group transactions are guided by the internationally accepted arm's length principle, ensuring that taxes are appropriately paid in Sweden and India," the company said in a statement.

The firm also noted that its transfer pricing policies are periodically reviewed to remain compliant with the evolving tax laws in both the countries.