Indian IT services giant Infosys gets $4 billion tax demand

FILE PHOTO: An employee walks past a signage board in the Infosys campus at the Electronics City IT district in Bangalore·Reuters
Haripriya Suresh
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By Haripriya Suresh

BENGALURU (Reuters) -Indian IT services company Infosys has received a tax demand of about $4 billion from the country's tax authority, a tax authority document seen by Reuters showed.

The demand relates to services received by Infosys from its overseas branches in various foreign countries and these so-called "import of services" are liable to tax, the document from the Indian tax authorities showed.

Infosys said in a statement it had received the notice from Director General of Goods and Services Tax Intelligence on Wednesday and was in the process of responding to it, adding that it believed tax "is not applicable" on the dealings.

Infosys has paid all its tax "dues and is fully in compliance with the central and state regulations on this matter," the company added.

The tax notice stated the demand is from July 2017 until the 2021-22 year.

"Further investigation is under progress," the notice said.

(Reporting by Haripriya Suresh; Editing by Aditya Kalra and Jane Merriman)