I-T Dept slaps Rs 582 cr tax demand notice on Infosys

May 19, 2013

New Delhi, May 19: Income Tax department has slapped a fresh USD 106 million (about Rs 582 crore) tax demand notice on Infosys, for 2009 fiscal, adding to the tax woes of India's second largest IT firm. info

The Bangalore-based software services exporter is already contesting additional income tax demands of USD 214 million (about Rs 1,175 crore) for four fiscals years beginning 2005 and said it will take legal recourse against the fresh tax demand notice as well.

"The company has received the assessment order from the Income tax authorities for fiscal 2009 on May 2, 2013 along with a demand order for an amount of USD 106 million," Infosys said in a filing to the US Securities and Exchange Commission (SEC) last week.

In the filing Infosys added, "As the company is contesting this position like earlier years, the appellate authority would be approached within the time limit prescribed under the relevant law."

Infosys is already facing tax demands worth USD 214 million for fiscal 2005 to fiscal 2008 "mainly on account of disallowance of a portion of the deduction claimed by the company under Section 10A of the Income Tax Act."

"The company has received demands from the Indian IT authorities for payments of additional taxes totalling USD 214 million, including interest of USD 62 million upon completion of their tax review for fiscal 2005, fiscal 2006, fiscal 2007 and fiscal 2008," it said in the filing.

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 in the filing.

Infosys added that its position in the cases relating to tax demands is strong and it expects to win the appeal.

"The company is contesting the demand and the management, including its tax advisors, believes that its position will likely be upheld in the appellate process.

"The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the company's financial position and results of operations," it added.

On taxes in India, Infosys said in the filing "The company, as an Indian resident, is required to pay taxes in India on the company's entire global income in accordance with Section 5 of the Indian Income Tax Act, 1961, which taxes are reflected as domestic taxes."

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News Network
April 15,2020

New Delhi, Apr 15: The Union Health Ministry has identified 170 districts as COVID-19 hotspots and 207 districts as potential hotspots, officials said on Wednesday, reiterating that there has been no community transmission of the disease in the country so far.

Addressing the daily briefing to provide updates on coronavirus situation in the country, Joint Secretary in the Ministry of Health Lav Agarwal said that states have been asked to classify districts which have reported a higher number of cases as hotspots, the districts where cases have been reported as non-hotspots, and green zones where no cases have been reported.

"Hotspots are those districts which are reporting more number of cases or where the rate of growth of COVID-19 cases is high," Agarwal said, adding a detailed direction has been issued to states stating consolidated efforts are required to utilise this period of lockdown to curb the spread of the virus.

"Cabinet secretary held a video conference today with all chief secretaries, DGPs, health secretaries, collectors, SPs, municipal commissioners and CMOs where hotspots were discussed and orientation on field level implementation of containment strategy was given.

"They were told about large outbreak containment strategies, cluster containment strategies. Delineation of buffer and containment zone, parameter mapping, defining of entry and exit points were also discussed in detail," he said.

The joint secretary said movement of people will not be allowed in containment zones except for those related with essential services and special teams will search for new cases and samples will be collected and tested as per sampling criteria.

The officials said that health facilities in buffer zone outside the containment zone will be oriented and people facing SARI and influenza-like symptoms will be tested there.

"Special teams have been formed which will work in containment zone and do contact tracing and house-to-house surveys. Cases of fever, cough and breathlessness will be identified in the survey and requisite action will be taken as per protocol," Agarwal said, adding that there has been no community transmissions so far but some local outbreaks.

The total number of COVID-19 cases in India has risen to 11,439 with 1,076 fresh cases reported in the last 24 hours while the death toll stands at 377, the ministry official said.

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News Network
June 16,2020

New Delhi, Jun 16: Congress president Sonia Gandhi on Tuesday demanded a rollback of hike in fuel prices, saying the government's decision to increase the prices of petrol and diesel during the coronavirus crisis is "wholly insensitive" and "ill-advised".

The government is doing nothing short of "profiteering off its people" when they are down and out, she said in a letter to Prime Minister Narendra Modi.

Petrol and diesel prices were hiked for the 10th day in a row on Tuesday.

"I am deeply distressed that in these exceedingly difficult times since the beginning of March, the government has taken the wholly insensitive decision to increase petrol and diesel prices on no less than ten separate occasions," Gandhi said in her letter.

She accused the government of earning an additional revenue of nearly Rs 2.6 lakh crore through these "ill-advised" hikes in excise duty and increase in prices of petrol and diesel.

"I urge you to roll back these increases and pass on the benefit of low oil prices directly to the citizens of this country.

"If you wish for them to be 'self-reliant' then do not place financial fetters on their ability to move forward," the Congress president said.

Gandhi also urged the government to use its resources to put money directly into the hands of those in need in these times of severe hardship.

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News Network
March 10,2020

New Delhi, Mar 10: A military transport aircraft of the Indian Air Force (IAF) brought back 58 Indians from coronavirus-hit Iran on Tuesday, official said.

The aircraft, a C-17 Globemaster, was sent to Tehran on Monday evening.

About 2,000 Indians are living in Iran, a country that has witnessed increasing numbers of coronavirus cases in the last few days.

"The IAF aircraft has landed. Mission completed. On to the next," External Affairs Minister S Jaishankar tweeted.

In an earlier tweet, he said, "First batch of 58 Indian pilgrims being brought back from Iran. IAF C-17 taken off from Tehran and expected to land soon in Hindon."

"Thanks to the efforts of our Embassy @India_in_Iran and Indian medical team there, operating under challenging conditions. Thank you @IAF_MCC. Appreciate cooperation of Iranian authorities. We are working on the return of other Indians stranded there (sic)," Jaishankar added.

The aircraft landed at Hindon airbase in Ghaziabad, from where the passengers were take to a medical facility.

According to latest reports, 237 people have died of novel coronavirus in Iran while the number of positive cases stands at around 7,000.

It is the second such evacuation by the C-17 Globemaster in the last two weeks.

On February 27, 76 Indians and 36 foreign nationals were brought back from the Chinese city of Wuhan by the aircraft of the Indian Air Force.

The C-17 Globemaster is the largest military aircraft in the IAF's inventory. The plane can carry large combat equipment, troops and humanitarian aid across long distances in all weather conditions.

Four days ago, a Mahan airline plane brought swab samples of 300 Indians from Iran to India.

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