Infosys to appeal against fresh tax demand of Rs 577 crore
"Infosys is in the process of filing an appeal before the Commissioner of Income Tax," the company said in a statement. According to Infosys the latest tax demand disregards a clarification by the government in January.
The current notice pertains to tax benefits claimed by the company on income generated from software developed partly in India and at overseas client locations for the fiscal year that began in April 2009.
"The company has received demands from the Indian IT authorities for payments of additional taxes totalling $214 million, including interest of $62 million upon completion of their tax review for fiscal 2005, fiscal 2006, fiscal 2007 and fiscal 2008," it said.
The deductible amount is determined by the ratio of export turnover to total turnover. The disallowance arose from certain expenses incurred in foreign currency being reduced from export turnover, but not reduced from total turnover, it added.
The tax demand for fiscal 2007 and fiscal 2008 also includes disallowance of portion of profit earned outside India from the STP units and disallowance of profits earned from SEZ units, it said.
"The matter for fiscal 2005, fiscal 2006, fiscal 2007 and fiscal 2008 are pending before the Commissioner of Income tax (Appeals) Bangalore," Infosys said.
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