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. ®

High performance access to file storage

More from The Register

next story
Android engineer: We DIDN'T copy Apple OR follow Samsung's orders
Veep testifies for Samsung during Apple patent trial
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
Big Content goes after Kim Dotcom
Six studios sling sueballs at dead download destination
Alphadex fires back at British Gas with overcharging allegation
Brit colo outfit says it paid for 347KVA, has been charged for 1940KVA
Jack the RIPA: Blighty cops ignore law, retain innocents' comms data
Prime minister: Nothing to see here, go about your business
Singapore decides 'three strikes' laws are too intrusive
When even a prurient island nation thinks an idea is dodgy it has problems
Banks slap Olympus with £160 MEEELLION lawsuit
Scandal hit camera maker just can't shake off its past
France bans managers from contacting workers outside business hours
«Email? Mais non ... il est plus tard que six heures du soir!»
Reprieve for Weev: Court disowns AT&T hacker's conviction
Appeals court strikes down landmark sentence
US taxman blows Win XP deadline, must now spend millions on custom support
Gov't IT likened to 'a Model T with a lot of things on top of it'
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
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.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.