Wipro gets fresh tax demand of R816 cr

Written by fe Bureau | Bangalore | Updated: Jun 14 2013, 06:34am hrs
Wipro has received a tax demand of R816.4 crore. With this notice, the company has joined the list of other IT companies like Infosys and iGate, and BPO firm WNS that face similar notices.

In a filing with US SEC on Thursday, Wipro said, In March 2013, the company received the draft assessment order... with a demand of R816.4 crore (including an interest of R84.8 core) for the financial year ended March 31, 2009. The company will file objections against the said demand before the Dispute Resolution Panel (DRP), within the time limit prescribed under the statute.

The company said it had received similar tax demands aggregating to R3,935.6 crore (including interest of R1,217 crore) arising primarily on account of denial of deduction under section 10A of the Income Tax Act, 1961, in respect of profit earned by the companys undertaking in Software Technology Park at Bangalore for the years ended March 31, 2001 to March 31, 2008.

The appeals filed against the said demand before the appellate authorities have been allowed in favour of the company by the second appellate authority for years up to March 31, 2007. Further appeals have been filed by the income tax authorities before the high court. For the year ended March 31, 2008, based on DRP directions confirming the position of the assessing officer, the final assessment order was passed. The company has filed an appeal against the said order before the Appellate Tribunal.

Wipro filing also said, 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."