Mumbai42 minutes ago
- copy link
The Government of India is not considering giving any exemption on the GST demand of ₹ 32,403 crore sent to Infosys Limited. Government sources told news agency Reuters that the tax demand made from Infosys is as per the GST rules. The country’s second largest IT company has sought 10 days to respond after meeting tax officials.
The dispute over Infosys’ GST liabilities began when the Karnataka government issued a notice claiming that the company had received services from its overseas branches during July 2017 to March 2022 but did not pay taxes on them.
Infosys did not pay tax under the reverse charge mechanism
DGGI had said in its report- Services received from foreign branches are considered imports under section 2 (11) of the IGST Act 2017. Therefore, Infosys will have to provide reverse charge mechanism for receiving services from branches located outside the country. Under this, the company owes IGST of Rs 32,403 crore from July 2017 to 2022.
The reverse charge mechanism under the Goods and Services Tax is a system where the recipient of goods and services has to pay the tax. The report said that Infosys has set up these foreign branches to carry out work related to on-site projects. Tax has not been paid on the services received through this under the reverse charge mechanism.
Infosys had rejected the allegations of outstanding liabilities
Earlier, Infosys had said in a stock exchange filing – According to the rules, GST does not apply to these expenses. Infosys has paid all its GST dues and the company is fully complying with the central and state rules in this matter. We have responded to the notice of Karnataka state GST officials. At the same time, we are also responding to the notice of DGGI.
Infosys profit in April-June quarter stood at ₹6,368 crore
Infosys’ net profit in the April-June quarter has increased by 7.1% year-on-year (YoY) to Rs 6,368 crore. In the same quarter last year (Q1FY24), the company’s net profit was Rs 5,945 crore.
Whereas in the previous quarter (Q4FY24) it was Rs 7,969 crore. That is, the company’s net profit has fallen by 20.1% on a quarterly basis (QoQ). Infosys released the results of Q1FY25 i.e. the first quarter of the financial year 2025 on July 18 last month.
Nandan Nilekani started Infosys for Rs 21,000 Beginning of
Founded in 1981, Infosys is a NYSE listed global consulting and IT services company. The company started with a capital of $250 (about Rs 21,000 today). Today, its market cap is Rs 7.28 lakh crore.
The 40-year-old company has more than 1800 customers in more than 56 countries. It has 13 subsidiary companies worldwide. The founder of the company is Nandan M. Nilekani. The CEO and Managing Director is Salil Parekh. D Sundaram is the lead independent director.
Source link
[ad_3]
