Feeds

Infosys vows to fight Indian tax claim

Domestic bill lands with a thud

High performance access to file storage

It’s not just Western technology giants that are being targeted by the Indian government, now local IT services behemoth Infosys has been forced to challenge a Rs.5.77 billion (£68.7m) tax demand by the authorities.

India’s second biggest outsourcer was hit with the tax bill for the 2009-10 year last month.

The demand relates to “tax benefits on income from onsite software development and revenue from SEZ [special economic zones in India], according to a statement sent to The Reg.

The firm is claiming that the tax demand ignores a clarification made by the authorities back in January, and added that it “is in the process of filing an appeal before the Commissioner of Income Tax”.

Infosys is already facing a hefty Rs11.8bn (£140m) bill for the four fiscal years preceding 2009-10.

The Indian government’s beef appears to be with the value of deductions the firm made. Expenses in foreign currency were apparently reduced from export turnover, but not reduced from total turnover, meaning Infosys effectively claimed too much in deductions from its tax bill over the period.

The company is by no means alone in being targeted by the tax authorities in India.

Nokia received a visit from the tax man back in January this year and was slapped with a Rs.13,000 crore (£1.5bn) bill for tax violations and transfer pricing irregularities.

Meanwhile, Google, which is under the microscrope in various countries around the world, received a Rs76 crore (£8.7m) fine in November last year for allegedly misleading the Indian government and violating accounting rules.

Vodafone has also been locked in a protracted battle with the authorities over £1.4bn worth of capital gains tax it is said to owe on its acquisition of Hutchison Essar back in 2007. ®

3 Big data security analytics techniques

More from The Register

next story
Putin tells Snowden: Russia conducts no US-style mass surveillance
Gov't is too broke for that, Russian prez says
Did a date calculation bug just cost hard-up Co-op Bank £110m?
And just when Brit banking org needs £400m to stay afloat
One year on: diplomatic fail as Chinese APT gangs get back to work
Mandiant says past 12 months shows Beijing won't call off its hackers
Whoever you vote for, Google gets in
Report uncovers giant octopus squid of lobbying influence
Lavabit loses contempt of court appeal over protecting Snowden, customers
Judges rule complaints about government power are too little, too late
MtGox chief Karpelès refuses to come to US for g-men's grilling
Bitcoin baron says he needs another lawyer for FinCEN chat
Don't let no-hire pact suit witnesses call Steve Jobs a bullyboy, plead Apple and Google
'Irrelevant' character evidence should be excluded – lawyers
EFF: Feds plan to put 52 MILLION FACES into recognition database
System would identify faces as part of biometrics collection
Ex-Tony Blair adviser is new top boss at UK spy-hive GCHQ
Robert Hannigan to replace Sir Iain Lobban in the autumn
Banks slap Olympus with £160 MEEELLION lawsuit
Scandal hit camera maker just can't shake off its past
prev story

Whitepapers

Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.