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TCS<\/a>, Infosys and Wipro are fighting cases related to tax incentives that they have claimed under the Software Technology Parks of India (STPI) and Special Economic Zone (SEZ<\/a>) schemes. Cognizant is in a dispute over how the dividend distribution tax over profits repatriated to its parent company is calculated.
Tata Consultancy Services, India’s largest IT services company, has over Rs 5,600 crore in disputes pending with tax authorities, a figure that has nearly doubled since the previous financial year, the company disclosed in its latest annual report. In FY17, TCS reported Rs 2,690 crore in contingent liability related to tax disputes. “Many of these disputes are because of issues with interpretation by different tax officials,” said Sangeeta Gupta, senior vice president at IT industry body Nasscom, adding that several of these cases eventually land up in courts and drag on for years.
Wipro’s earliest tax dispute<\/a> is for FY1985-1986 — over 30 years ago. The company faces over Rs 1,900 crore in tax disputes, its annual report showed.
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“Tax litigation in India is a prolonged process. Over the years, the industry has repeatedly sought speedy resolution of outstanding tax disputes,” a Wipro spokesperson said in response to ET’s queries. “The Economic Survey 2018 noted that both the government and the courts should come together and find a solution to address the large pendency of cases.”
TCS declined to comment on the reason for the jump in its tax liabilities, citing its silent period ahead of its first-quarter earnings announcement next week. Infosys, which has over Rs 3,500 crore in tax disputes, did not respond to a request seeking comment.
An IT industry executive, requesting anonymity, said companies lose heavily even if they take a dispute to court. “If a company wants to contest a tax notice, it will still have to deposit a part of the money claimed by the tax department before a court takes up the case,” he said.
In a recent case involving Cognizant, the Madras High Court granted an interim stay on the Income Tax<\/a> department’s proceedings, subject to the company depositing 15% of the Rs 2,800 crore dividend distribution tax demanded by the department. Aformer CEO of a Bengaluru-based IT services company said such cases remain indecisive for years, and decisions have been in favour of companies on many occasions.
“Companies take one stand and tax authorities take another stand. Then the tax authorities want it to be sent for appeal because no
Indiana offered Infosys as much as $31 million in incentives when the company up shop in the US state. The incentives were mostly in tax abatements and one-time grants. Cognizant, too, received benefits when it expanded its headcount in Tampa, Florida.
“In India , such tax litigations have taken time. While it is hard to determine specific reasons, given the sheer size of the dispute, no parties are willing to let it go,” said Amit Maheshwari, partner at tax consulting firm Ashok Maheshwary & Associates LLP.
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TCSInfosys和Wipro战斗情况下相关的税收优惠,他们声称在印度软件技术园区(STPI)和经济特区(经济特区)计划。认识到在争论如何汇回利润的股息分配税收计算它的母公司。
塔塔咨询服务公司、印度最大的IT服务公司,拥有超过5600卢比与税务机关争端悬而未决,这一数字几乎翻了一番自上一财政年度,该公司在其最新的年度报告中披露。FY17 TCS报道2690卢比,或有负债相关税务纠纷。“很多这些纠纷都是由于不同的税务官员的问题解释,“桑吉塔•古普塔说这行业组织行业协会高级副总裁补充说,这些案件的几个最终的土地在法院和拖累多年。
Wipro最早的税务纠纷是fy1985 - 1986 - 30多年前。该公司面临超过1900卢比的税务纠纷,年度报告显示。
“税收诉讼在印度是一个长期的过程。多年来,该行业不断寻求快速解决欠税争端,Wipro的一位发言人说:“在回应等的查询。“2018年经济调查指出,政府和法院都应该团结起来,找到一个解决方案来解决大悬而未决的案件。”
TCS拒绝评论跳的原因在其纳税义务,援引其静止期之前,其第一季度收益报告下周。印孚瑟斯,有超过3500卢比的税收争端,没有回应记者的置评请求。
IT行业高管要求匿名说,公司损失惨重,即使他们采取争议法庭。“如果一个公司想要比赛通知征税,它仍然会有存款的一部分资金由税务部门在法院声称占用的情况,”他说。
在最近的案件涉及认识、马德拉斯高等法院授予临时保持的所得税部门的诉讼,该公司将15%的2800卢比股息分配税收部门的要求。Bengaluru-based IT服务公司前CEO说这种情况下仍优柔寡断的多年来,和决策支持公司在很多场合。
“企业需要一个站和税务机关采取另一个站。然后发送的税务当局想要因为没有吸引力
印第安纳州印孚瑟斯提供高达3100万美元的奖励当公司在我们国家。激励机制主要是在税收减免和一次性补助。也认识到,收到利益当它扩大了员工在坦帕,佛罗里达。
“在印度,这样的税收诉讼了。尽管很难确定具体原因,考虑到庞大的争议,没有政党愿意放手,”Amit Maheshwari说,税务咨询事务所合伙人Ashok Maheshwary & Associates。
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