Wipro has been slapped with an over Rs816 crore claim by I-T department, becoming the latest IT company to have got such a notice after Infosys, WNS and iGate
Azim Premji-led Wipro became the latest information technology (IT) company in India to receive a notice from the Income Tax (I-T) department. Following similar tax demand notices to Infosys, WNS and iGate, the I-T department has slapped a notice for Rs816 crore on Wipro.
In a statement, Wipro, the third largest IT company in the country, said, the 'draft assessment order' from I-T authorities for FY2008-09 has arisen mainly due to denial of deduction under section 10A of the I-T Act, 1961, in respect of profit earned by its undertaking in the Software Technology Park (STP) at Bangalore.
In a regulatory filing on the US Securities and Exchange Commission (SEC), Wipro said, “The company will file its objections against the said demand before the Dispute Resolution Panel, within the time limit prescribed under the statute”.
Besides the fresh assessment order, Wipro said it is also facing tax demands of around Rs3,936 crore (including interest) for the period 31 March 2001 to 31 March 2008 due to denial of deduction under section 10A of the I-T Act, 1961, on profits it earned in STP in Bangalore.
“Considering the facts and nature of disallowance and the order of the appellate authority upholding the claims of the company for earlier years, the company believes that the final outcome of the above disputes should be in favour of the company and there should not be any material impact on the consolidated financial statements,” the Wipro filing added.
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