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Government may rescind tax notice to Infosys after backlash from sector

VCCircle

VCCircle · 10m ago

Government may rescind tax notice to Infosys after backlash from sector

The Indian government is expected to withdraw its demand for Infosys to pay $4 billion in back taxes after receiving criticism from the software services industry. The government had ordered Infosys to pay the additional amount, claiming that its overseas offices should pay goods and services tax (GST) dating back to 2017. However, the finance ministry now believes this notice goes against India's tax principle of not taxing service exports. A formal decision is yet to be made, but the finance ministry and Infosys have not commented on the matter.

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Related News

After Infosys, tax authorities may issue GST notices to more IT companies for alleged tax evasion: Report | Mint

Livemint

Livemint · 11m ago

After Infosys, tax authorities may issue GST notices to more IT companies for alleged tax evasion: Report | Mint

Indian tax authorities may issue notices to other IT companies for alleged tax evasion related to work conducted by their overseas offices. This comes after Infosys was recently issued a ₹32,403 crore GST notice. Industry body Nasscom responded to the tax demand, stating that it reflects a lack of understanding of the IT sector's operating model and that multiple companies are facing unnecessary litigation and uncertainty. Infosys argued that GST payments are eligible for credit or refund against the export of IT services. Nasscom called for enforcement mechanisms to honour government circulars and prevent negative impacts on India's ease of doing business.

Karnataka Job Quota Row: Andhra & Kerala Woo IT Giants

Inc42 · 12m ago

Karnataka Job Quota Row: Andhra & Kerala Woo IT Giants

Karnataka's government has paused its bill proposing job quotas for locals in the private sector after backlash from tech giants like Infosys and Wipro. Meanwhile, Andhra Pradesh and Kerala are seizing the opportunity to attract IT companies by promoting their states as business-friendly alternatives. These developments highlight the competitive landscape among Indian states to secure investments from major IT firms.

Centre likely to accept Infosys’ plea on GST notice

Livemint

Livemint · 11m ago

Centre likely to accept Infosys’ plea on GST notice

The central government of India is likely to accept Infosys' plea that goods and services tax (GST) does not apply to the services it receives from its offshore branch offices. This move could potentially resolve a tax dispute and prevent further litigation. Infosys had received a pre-show cause notice from the Directorate General of GST Intelligence (DGGI), stating that it had not paid ₹32,403.46 crore in IGST over a five-year period. The government's intention to resolve this case quickly aligns with its goal of promoting an investor-friendly environment and attracting investments.

DGGI closing pre-show cause GST notice proceedings of Rs 3,898 cr for 2017-18: Infosys

YourStory

YourStory · 11m ago

DGGI closing pre-show cause GST notice proceedings of Rs 3,898 cr for 2017-18: Infosys

Infosys, India's second-largest IT services company, received communication from the Directorate General of GST Intelligence (DGGI) closing the pre-show cause notice proceedings for the financial year 2017-2018. The notice amounted to INR 3,898 crore ($522 million). Earlier in the week, Infosys received a INR 32,403-crore ($4.34 billion) GST notice from authorities. DGGI is responsible for improving compliance with indirect tax laws in India. Infosys believes that GST is not applicable to the mentioned expenses and has paid all its dues.

Karnataka authorities have withdrawn GST notice: Infosys

YourStory

YourStory · 11m ago

Karnataka authorities have withdrawn GST notice: Infosys

Infosys, India's second largest IT company, announced that Karnataka state authorities have withdrawn the 'pre-show cause' notice demanding Rs 32,403 crores in GST payment. The company was directed to submit further response to the Directorate General of GST Intelligence (DGGI) regarding the issue. Infosys maintained that it believes GST is not applicable to the expenses mentioned in the notice. Apex IT body Nasscom commented that the tax demand reflects a lack of understanding of the industry's operating model and highlighted sector-wide issues facing multiple companies in terms of litigation and uncertainty.

Tech giant Infosys to receive windfall tax refund of Rs 6,329 crore from I-T department

IndianStartupNews

IndianStartupNews · 1y ago

Tech giant Infosys to receive windfall tax refund of Rs 6,329 crore from I-T department

Indian technology company Infosys is set to receive a tax refund of around $750 million from the Income Tax Department. The refund covers multiple assessment years from 2007-08 to 2018-19. However, Infosys also faces tax liabilities of about $360 million for the assessment year 2022-23 and a demand of $540,000 for the year 2011-12. Additionally, several subsidiaries of Infosys have received assessment orders, resulting in a collective tax demand of approximately $37 million. The company is evaluating the implications of these orders on its financial statements and may appeal against them.

Gameskraft to get demand notice for ₹21,000-cr tax evasion: Report

Money Control

Money Control · 1y ago

Gameskraft to get demand notice for ₹21,000-cr tax evasion: Report

Gaming company Gameskraft may receive a demand notice along with penalties from the Central Board of Indirect Taxes and Customs (CBIC) for allegedly evading taxes amounting to ₹21,000 crore. A senior government official mentioned that the tax demand would be sent soon, but there had been a delay due to a court order from the Karnataka High Court.

Infosys receives tax demand of ₹341 crore

Thehindubusinessline

Thehindubusinessline · 1y ago

Infosys receives tax demand of ₹341 crore

IT company Infosys has been slapped with a tax demand of ₹341 crore by the Indian Income Tax Department for the assessment year 2020-21. Infosys is currently evaluating the implications of this order on their financial statements and is considering filing an appeal. Additionally, one of the company's subsidiaries has received a refund order amounting to ₹15 crore for the assessment year 2014-15. This comes after Infosys was reported to be expecting a refund of ₹6,329 crore from the IT department. Infosys had previously disclosed a tax demand of around ₹2,763 crore.

Canada slaps over CAD 13OK fine on Infosys over health tax underpayment

Livemint

Livemint · 1y ago

Canada slaps over CAD 13OK fine on Infosys over health tax underpayment

Global IT services provider Infosys has been fined CAD 134,822.38 (₹82 lakh) by the Canadian government for underpayment of employee health tax in 2020. The penalty, received on May 9, will not materially impact Infosys' finances or operations, according to a regulatory filing. The company's shares were down 0.09% following the news. Infosys recently announced its Q4 results, with a net profit of ₹7,975 crore and total revenues of ₹37,923 crore. For FY25, the company expects revenue growth of 1-3% in constant currency terms and an operating margin of 20-22%.

Nasscom bats for Infosys, says Rs 32k Cr GST notice shows lack of understanding of industry model

YourStory

YourStory · 11m ago

Nasscom bats for Infosys, says Rs 32k Cr GST notice shows lack of understanding of industry model

Nasscom, the apex IT association, has voiced its support for Infosys in response to the company's Rs 32,403-crore GST notice. Nasscom argues that the notice displays a lack of understanding of the IT industry's operating model and calls for clarity in compliance obligations to avoid unnecessary litigation. It emphasizes the importance of an enabling policy environment for accelerating service exports and attracting global tech investments to India. The GST notice issued to Infosys covers services availed from its overseas branches, but Infosys contends that these expenses are not subject to GST.

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