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News >> Technology >>
IT Dept slaps 
500 M notice on Infosys
By agencies
|
Tuesday, 03 May 2005, 19:30 IST
BANGALORE:Infosys Technologies Ltd. has been asked to pay an additional 
500 million as tax for the year ended March 2002 by the Income Tax department after the company was denied some exemptions under the IT Act.
The IT authorities on April 15 demanded 500 million as additional tax, including interest of about 150 million, after completing their tax reviews for the year, Infosys said in a filing to the Securities and Exchange Commission (SEC).
However, Infosys has not made any provisions for this latest tax demands. We intend to contest the demand and the management and its tax advisors believe that the companys position will likely be upheld in the appellate process, Infosys said in the filing.
The IT department denied tax exemptions to Infosys under section 10A if the IT Act on some expenses incurred by the company in foreign currency.
The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the companys financial position and the results fo the operations, the company said.
500 million as tax for the year ended March 2002 by the Income Tax department after the company was denied some exemptions under the IT Act.
The IT authorities on April 15 demanded 500 million as additional tax, including interest of about 150 million, after completing their tax reviews for the year, Infosys said in a filing to the Securities and Exchange Commission (SEC).
However, Infosys has not made any provisions for this latest tax demands. We intend to contest the demand and the management and its tax advisors believe that the companys position will likely be upheld in the appellate process, Infosys said in the filing.
The IT department denied tax exemptions to Infosys under section 10A if the IT Act on some expenses incurred by the company in foreign currency.
The management believes that the ultimate outcome of this proceeding will not have a material adverse effect on the companys financial position and the results fo the operations, the company said.