Infosys has received a notice for alleged tax evasion of over Rs. 32,000 crore from the Directorate General of GST Intelligence, as per the reports of Moneycontrol, citing a document.
“In lieu of receipt of supplies from overseas branch offices, the Company has paid consideration to the branch offices in the form of overseas branch expense. Hence, M/s Infosys Ltd, Bengaluru is liable to pay IGST under reverse charge mechanism on supplies received from branches located outside India to the tune of Rs. 32403.46 crores for the period 2017-18 (July 2017 onwards) to 2021-22.,” read the document.
The Reverse Charge Mechanism in GST is a system wherein the recipient of the goods and services is required to pay the tax instead of the supplier.
The document also added that the IT giant was including the expenses incurred towards overseas branches as part of their export invoice from India and basis the said export values, was computing the eligible refund.
Infosys is also raising the receipt of export proceeds and export invoice related to the project, mentioned the document.
