Mahindra Satyam to submit Rs 617 cr to I-T department
Mahindra Satyam on Friday said it will submit to tax authorities about Rs 617 crore demanded by I-T Department under the foreign tax credit liability.business Updated: Apr 01, 2011 22:09 IST
Mahindra Satyam on Friday said it will submit to tax authorities about Rs 617 crore demanded by I-T Department under the foreign tax credit liability.
"The company shall submit a banker's cheque for Rs 350 crore and an unconditional bank guarantee for Rs 267 crore, upon which the Additional Commissioner of Income Tax shall withdraw the garnishee orders issued and defreeze the company bank accounts," Satyam Computer Services (now Mahindra Satyam) informed the Bombay Stock Exchange.
Last month, tax authorities slapped a Rs 617 crore demand on Mahindra Satyam, against which the company had moved the Andhra Pradesh High Court.
The High Court on Wednesday directed it to deposit Rs 350 crore with Central Board of Direct Taxes (CBDT) and also issue it bank guarantee of Rs 267 crore. The matter has been posted to April 20 for further hearing.
Earlier, Mahindra Satyam Chairman Vineet Nayyar had said that CBDT had turned down the company’s requests not to impose the tax as the calculations were based on the accounts of the previous management and have proved to be fictitious.
Before being bought over by Mahindras, Satyam Computer Services was hit by a multi-crore accounting fraud by its founder Ramalinga Raju.
The I-T department’s tax claim is based on Rs 345 crore foreign tax credit availed of by the former management of Satyam Computer, which the present leadership believes to be forged.
The Rs 345 crore tax demand became Rs 616,53,92,660 after the imposition of interest and penalties.
In fact, Nayyar had said that instead of a tax demand, the CBDT should return Rs 200 crore, which the company overpaid to the department.