The Indian government is likely to withdraw its demand for Infosys to pay $4 billion in back taxes. This follows extensive lobbying by the IT company and criticism from the software services industry, as per Reuters.
Last month, authorities ordered Infosys to pay the additional amount, arguing that its overseas offices should have paid Goods and Services Tax (GST) since 2017.
The tax notice was sent in accordance with existing regulations, but the finance ministry now believes it contradicts India’s broader tax principle of not taxing service exports.
While a formal decision has not yet been made, government sources indicated Reuters that the demand may soon be retracted.
TOPICS:
Infosys