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Infosys' ₹32,000-crore tax demand not to be relaxed by government: Report
The tax demand on Infosys is in accordance to GST rules and the company has sought ten days to submit its response after meeting tax officials.
The government is not considering any relaxation over the ₹32,000-crore tax demand it sent to Infosys Ltd, news agency Reuters citing sources in the know. The tax demand on Infosys is in accordance to GST rules and the company has sought ten days to submit its response after meeting tax officials, the report claimed. This comes after CNBC-TV18 reported that Infosys had sought 10 days to reply to the pre-show cause notice after a meeting with Directorate General of GST Intelligence (DGGI) Bengaluru on August 5.
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Last week GST authorities slapped a ₹32,403 crore notice on Infosys for services availed by the company from its overseas branches for five years starting 2017. The company said that the ‘pre-show cause’ notice is not applicable on expenses mentioned. It said that GST payments are eligible for credit or refund against export of IT services.
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“Infosys has paid all its GST dues and is fully in compliance with the central and state regulations on this matter,” the company said earlier.
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Apex IT body Nasscom also said that the latest tax demand reflects a lack of understanding of the industry’s operating model and asserted that government circulars issued based on recommendations of the GST Council must be honoured.
