The name of the country’s second largest IT company Infosys is once again in the headlines. Actually, Infosys has been served a notice by the tax department in the case of alleged GST evasion of Rs 32 thousand crores. The company is claiming that it has paid all the dues. Meanwhile, this issue has also become a topic of discussion in the corporate world and many prominent names are criticizing it.
GST department sent notice for this reason
Actually, Infosys has been sent a tax notice by the GST department, demanding dues of Rs 32,403 crore. The notice states that the tax demand is for the services taken by Infosys from its foreign branches, which was done during 2017 to 2022. Infosys has paid its foreign branches in exchange for those services and shown them as expenses. Due to this, the company has an Integrated GST liability of Rs 32,403.46 crore under the reverse charge mechanism.
Infosys’ side – no liability arises
After the news of receiving the notice came out, Infosys informed the stock market about its stand on this matter. It said that it does not have any dues. It has already paid all the dues of GST. The company is properly complying with all the rules of the state and the center in this matter. The company believes that it does not have any liability of tax (GST) in the said case.
Mohandas Pai got angry with the notice to Infosys
Padma Shri awarded businessman TV Mohandas Pai has strongly criticized the GST notice received by Infosys. He expressed his objection on social media X by sharing a news of Infosys receiving a GST notice. He tagged the Prime Minister’s Office, PM Narendra Modi, Finance Ministry and Finance Minister Nirmala Sitharaman and wrote that if this news of the notice is true then it is objectionable and is the worst case of tax terrorism. GST is not levied on companies exporting services from India. He questioned the tax officials and asked whether they can interpret things according to their own convenience?
Ashneer told about the IVF center
Mohandas Pai has been the Chief Financial Officer and Board Member of Infosys. Quoting his post, Ashneer Grover has also given his reaction on the matter. Grover has earlier also been vocal on the tax system of India. In the latest case, he says- GST people have earlier sent tax notices to IVF centers as well. His argument was- IVF centers do not come under the purview of medical service, because the condition of the patient remains the same even after treatment. So what if a child is born in between!
Sir – GST folks in India have sent notices previously to IVF Centers saying they are not exempt from GST as they are not medical services – because the condition of the patient is same post the treatment !! What happened to the child in the beech? https://t.co/NGsF0yjy7j
— Ashneer Grover (@Ashneer_Grover) July 31, 2024
Infosys shares fell
After the news came out, the price of Infosys shares is also getting affected. Today, on Thursday, in early trade, Infosys shares have fallen by 0.55 percent and have come below Rs 1,860. This fall has come at a time when tech stocks are witnessing a rally across the world.
Also read: Troubles increase for Infosys, notice received for GST evasion of Rs 32,000 crore
