Tweet
January 17, 2011, 10:51 PM EST
By Malavika Sharma
(Updates with comment from chief financial officer in second paragraph.)
Jan. 18 (Bloomberg) -- Infosys Technologies Ltd. India’s second-largest software exporter, will contest a 4.57 billion- rupee ($100 million) tax claim from the nation’s authorities, saying it is “highly arbitrary.”
“We got an order from the department,” Chief Financial Officer V. Balakrishnan said in a telephone interview today. “We are going to contest it.”
Infosys, based in Bangalore, received the order in the first week of January, he said. Indian authorities asked the company to pay the amount, saying that the software exporter isn’t eligible to claim tax benefits for income generated by its employees working at clients’ sites overseas, the Economic Times reported earlier today.
Tata Consultancy Services Ltd., India’s biggest software exporter, will watch for developments on the taxation issue, Chief Financial Officer S. Mahalingam told Bloomberg UTV today.
Infosys reported third-quarter profit of 17.8 billion rupees on Jan. 14, missing the 18.2 billion-rupee average of 27 analysts’ estimates compiled by Bloomberg. The company’s fourth- quarter forecast also lagged behind analysts’ estimates.
--Editors: Vipin V. Nair, Lena Lee.
To contact the reporter on this story: Malavika Sharma in New Delhi at msharma52@bloomberg.net
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net
Webmaster Forum | SEO Forum | Coding Forum | Graphics Forum</b>
(Updates with comment from chief financial officer in second paragraph.)
Jan. 18 (Bloomberg) -- Infosys Technologies Ltd. India’s second-largest software exporter, will contest a 4.57 billion- rupee ($100 million) tax claim from the nation’s authorities, saying it is “highly arbitrary.”
“We got an order from the department,” Chief Financial Officer V. Balakrishnan said in a telephone interview today. “We are going to contest it.”
Infosys, based in Bangalore, received the order in the first week of January, he said. Indian authorities asked the company to pay the amount, saying that the software exporter isn’t eligible to claim tax benefits for income generated by its employees working at clients’ sites overseas, the Economic Times reported earlier today.
Tata Consultancy Services Ltd., India’s biggest software exporter, will watch for developments on the taxation issue, Chief Financial Officer S. Mahalingam told Bloomberg UTV today.
Infosys reported third-quarter profit of 17.8 billion rupees on Jan. 14, missing the 18.2 billion-rupee average of 27 analysts’ estimates compiled by Bloomberg. The company’s fourth- quarter forecast also lagged behind analysts’ estimates.
--Editors: Vipin V. Nair, Lena Lee.
To contact the reporter on this story: Malavika Sharma in New Delhi at msharma52@bloomberg.net
To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net
Webmaster Forum | SEO Forum | Coding Forum | Graphics Forum</b>