Infosys tax case: India open to resolving over Rs 32,000 crore tax dispute with Infosys
tax disputes with major companies including Infosys Ltd. and foreign airlines, people familiar with the matter said, suggesting New Delhi is open to making accommodations to avoid hurting investor sentiment in the South Asian nation.
Authorities are exploring options to settle with companies including Infosys, which last month got hit by a demand for 324.03 billion rupees ($3.9 billion) in back taxes dating back to 2017, the people said. Authorities at the time cited non-payment of taxes on expenses incurred by overseas offices of the company, which provides IT services to banks and other multinational corporations from the US to Europe.
Also Read: Infosys accused of Rs 32,000-crore GST evasion: Here are 10 things to know
The demand coincided with tax notices sent to 10 foreign airlines including British Airways. Analysts have warned that the unusual tax demands — issued with little warning — may hamper India’s attempts to lure investment away from China, while perpetuating perceptions that the country remains a difficult place to do business.
The Goods and Services Tax council, a panel comprising federal and state finance ministers, is slated to meet Sept. 9 to discuss, among other things, the notices.
Also Read:Infosys tax status — IT's complicated
The government is working on finding a solution to the issue to ensure the long-term ease of doing business, the people said, asking not to be identified discussing sensitive matters.
CNBC-TV18 earlier reported on the possible relief.
The aim is to amicably
