Infosys has been alleged for short payment for two quarters and it is now in the process of determining further steps after checking the veracity of the claim.
Narayana Murthy’s Infosys is one of the most valuable companies in the country with a market cap of more than Rs 684000 crore. Although Infosys is an Indian company, it caters to clients all over the globe and it currently has a presence in over 56 nations. Narayana Murthy’s Infosys often makes it to the news for its business announcements, new ventures, acquisitions, hirings and other things. However, the company is now in the news for a completely different reason. As revealed by the company, Infosys has been slapped with a fine for alleged violation of short payment of modified business tax.
Although the IT giant has been fined just Rs 18,702 which is nothing when you look at the financial transactions of the company. Infosys has been alleged for short payment for two quarters and it is now in the process of determining further steps after checking the veracity of the claim. For those who are unaware, short payment refers to partial or reduced payment made that is lesser than the invoiced amount.
As mentioned by Infosys in a stock exchange filing, “On January 25, the Nevada Department of Taxation sent a communication for the collection of penalty. The violations and contraventions committed or alleged to be committed is short payment of modified business tax for Quarter 4, 2021 to Quarter 1 of 2022.”
Infosys maintained that there is no material impact on finances, operations or other activities of the company following the development. It is worth noting that this is not the first time Infosys has been fined for short payment. Earlier, Florida’s department of revenue had imposed a penalty of $76.92 on Infosys in August 2023 for shortfall of tax payment.
In October 2023, the Commonwealth of Massachusetts had imposed a fine of $1,101.96 on Infosys. The Commercial Tax Department of India in September had last year sent a demand notice of Rs 26.5 lakh to Infosys for integrated goods and services tax (IGCST), along with penalty and interest charges.
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