Infosys to appeal against tax demand

Top Stories

»	49% Indian startups now from tier 2, 3 cities: Jitendra Singh
»	'India ranks 3rd in global startup ecosystem & number of unicorns'
»	Tripura exported over 9K tonnes of pineapples in 2 years
»	CPI inflation eases to 6.71% in July, IIP falls to 12.3%
»	Rupee depreciates 12 paise to close at 79.64 against US dollar

SME Times News Bureau | 21 May, 2013
Indian IT bellwether Infosys Ltd Monday said it would appeal against the notice of the income tax department demanding Rs.577 crore as outstanding dues for fiscal 2008-09.

"We are in the process of filing an appeal before the commissioner of income tax as the demand notice does not take into consideration the clarification issued Jan 17, 2013 by the Central Board of Direct Taxes (CBDT)," the global software major said in a statement Monday.

Admitting that it had also received an assessment order for fiscal 2009-10, demanding a net tax of Rs.577 crore, the company said the assessment followed similar orders for fiscal years 2007-08 and 2008-09 when tax benefits on income from onsite software development and revenue from SEZ (special economic zone) were not allowed.

"The assessment order for fiscal 2009-10 followed the order for the assessment years 2007-08 and 2008-09 that did not allow tax benefits on income from onsite software development and revenue from SEZ, disregarding the latest CBDT clarification," the company asserted.

The company has already contested demand for additional income tax for Rs.1,175 crore for fiscal years since 2004-05.

"We will take legal recourse against the fresh tax demand notice as well," the company observed.

In its recent filing to the US Securities and Exchange Commission (SEC), the company said it would approach the appellate authority within the time limit prescribed under the relevant law on the assessment order from the income tax authorities for fiscal 2009 along with a demand order for USD 106 million (Rs.582 crore).