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
June 30,2020

New Delhi, Jun 30: The Home Ministry on Monday issued guidelines for 'Unlock 2.0' phase across country between July 1 and July 31. The report stated that COVID-19 lockdown shall continue to remain in force in containment zones till July 31. In containment zones, only essential activities to be allowed. The government's guidelines come on a day when Maharashtra and Tamil Nadu extended lockdowns in their respective states to July 31.

Unlock 2.0 Guidelines:

•   Schools, colleges, educational institutes wil remain closed till July 31. Online/distance learning shall continue to be permitted and shall be encouraged

•   Lockdown shall continue to remain in force in containment zones till July 31st.  In containment zones, only essential activities to be allowed.

•   Night Curfew shall continue to remain in force, between 10:00 pm and 5:00 am, except for essential activities and other relaxations.

•   Social/ political/ sports/ entertainment/ academic/ cultural/ religious functions and other large congregations remain prohibited.

•   International air travel, except as allowed by MHA, will also remain barred.

•   Shops depending upon their area, can have more than 5 persons at a time. However, they have to maintain adequate physical distance.

•   Training institutions of the central and state governments will be allowed to function with effect from July 15 and SOP in this regard will be issued by the Department of Personnel and Training.

Meanwhile, Union Home Secretary Ajay Bhalla wrote to Chief Secretaries of all states and UTs, urging them to ensure compliance of Unlock 2 guidelines and direct all concerned authorities for their strict implementation.

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News Network
May 30,2020

New Delhi, May 30: As the NDA government completes one year of its second term, Prime Minister Narendra Modi listed several achievements and initiatives taken by his government in the past year in an audio message addressed to the people of the country.

PM Modi said, "This day last year began a golden chapter in the history of Indian democracy. It was after several decades that the people of the country voted back a full-term government with a full majority."

"Your role has played a pivotal role in creating this chapter. In such a situation, this day is an opportunity for me to bow to the citizens of the country and the democratic ethos of our nation," said PM Modi.

"Had the situation been normal, I would have got the chance to meet you. Your affection and active support in the past year have given me new energy and inspiration. During this period, the way you have shown the collective powers of democracy, they have become an example for the whole world," he added.

PM Modi talked about several important initiatives taken by his government in 2014 as well as India's demonstration of its mettle through the surgical strike and airstrike.

"Six years ago in 2014, the people of this country voted to bring a major change in the country. You voted to change the country's policy and manner. During that tenure where surgical strike and airstrike took place, one rank one pension, one nation one tax GST, and better MSP for farmers were also fulfilled. That period was dedicated to fulfilling many needs of the country."

He further said that in these years the country has seen systems coming out of the quagmire of inertia and corruption. The country has seen governance change to make life easier for the poor.

"During that period, India's stature in the world increased. By opening bank accounts of poor people, by giving them gas connections, by providing free electricity connections, by building washrooms, by building houses, the dignity of the poor has also been increased," said PM Modi.

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News Network
March 27,2020

New Delhi, Mar 27: The death toll due to COVID-19 rose to 17 in the country on Friday and the number of coronavirus cases climbed to 724, according to the Health Ministry. In its updated figures at 9.15 am, the ministry stated that four deaths were reported from Maharashtra while Gujarat had registered three deaths.

Karnataka has reported two deaths so far, while Madhya Pradesh, Tamil Nadu, Bihar, Punjab, Delhi, West Bengal, Jammu and Kashmir and Himachal Pradesh have reported one death each.

According to the data, the number of active COVID-19 cases in the country stood at 640, while 66 people were either cured or discharged and one had migrated. The total number of 724 cases included 47 foreign nationals, the ministry said.

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