Infosys under scanner for allegedly evading over Rs 32,000 crore in taxes
The Bengaluru-based information technology company, however, said it had paid all its GST dues and was ‘fully in compliance’ with central and state regulations.
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The Directorate General of Goods and Service Tax Intelligence is investigating the information technology company Infosys for allegedly evading over Rs 32,000 crore in integrated Goods and Services Tax over five years, The Economic Times reported on Wednesday.
The Bengaluru-based company, however, said in a stock exchange filing in response to news reports that it had received a “pre-show cause” notice from the law enforcement agency and claimed that GST did not apply to the expenses in contention, The Indian Express reported.
In its notice on Tuesday, the Directorate General of GST Intelligence alleged that Infosys was under the scanner for the “non-payment of IGST [integrated GST] on import of services as recipient of services” between July 2017 to March 2022.
The Directorate General of GST Intelligence is a law enforcement agency under the Union Ministry of Finance responsible for probing tax evasion. The integrated Goods and Services Tax is an indirect tax levied on the inter-state supply of goods and services.
According to the law enforcement agency, Infosys created overseas branches to service clients as part of its agreement with them. These branches and the company are treated as “distinct persons” under the Integrated GST Act, which provides for the collection of tax on the inter-state supply of goods or services or both.
“Thus, in lieu of...
