Govt likely to withdraw Infosys $4 billion tax demand after backlash

India is likely to retract its demand that Infosys pay $4 billion in back taxes after weeks of lobbying by the IT giant and an onslaught of criticism from the software services industry, said two government sources with direct knowledge of the plan.

Authorities last month ordered Infosys to pay the additional amount, arguing that its overseas offices should pay goods and services tax (GST) dating back to 2017.