No relief for Infosys: Indian Government refuses to budge on ₹32,000-crore tax demand, after Canada slaps fine

The Indian government is standing firm on its substantial tax demand to Infosys, the country’s second-largest IT services firm, according to a government source who spoke on condition of anonymity. The tax authorities are not considering any relaxation in the demand, which was issued last month in accordance with goods and services tax (GST) rules.

Infosys has reportedly sought a ten-day extension to submit its response after meeting with tax officials. The company is facing a tax demand of over ₹ 32,000 crore ($4 billion) related to services received from its overseas branches between July 2017 and the 2021-22 fiscal year. This amount is equivalent to approximately 85% of the company’s revenue for the quarter ended June 30.