IBM India asked to pay $866 million by IT department
4 Nov 2013 2:44 AM IST
The income tax office issued the company a notice for under-reporting revenue for fiscal 2009 by the Indian unit, a newspaper said, citing a tax official.
Reacting to the reports, IBM India spokeswoman said, 'IBM does not agree with the tax department's claims and will aggressively defend itself through the appropriate judicial process.
IBM has been locked in a tax dispute with authorities related to its 2009 reporting year income, media have reported previously.
In its latest 10-Q filed with the US Securities and Exchange Commission (SEC), IBM said it had recorded $394 million in prepaid income tax in India 'at' 30 September, 2013. IBM said a 'significant portion' of that amount was paid in order to reserve its right to appeal previous tax assessments in India, which it said it expects to win in appeal.
The tax office notice was a draft assessment order which can be challenged by IBM before the appellate authorities, the report added.
The case comes as India is pursuing tax claims against several multinationals, with Royal Dutch Shell, and Vodafone Plc among several firms involved in tax disputes in the country.
Reacting to the reports, IBM India spokeswoman said, 'IBM does not agree with the tax department's claims and will aggressively defend itself through the appropriate judicial process.
IBM has been locked in a tax dispute with authorities related to its 2009 reporting year income, media have reported previously.
In its latest 10-Q filed with the US Securities and Exchange Commission (SEC), IBM said it had recorded $394 million in prepaid income tax in India 'at' 30 September, 2013. IBM said a 'significant portion' of that amount was paid in order to reserve its right to appeal previous tax assessments in India, which it said it expects to win in appeal.
The tax office notice was a draft assessment order which can be challenged by IBM before the appellate authorities, the report added.
The case comes as India is pursuing tax claims against several multinationals, with Royal Dutch Shell, and Vodafone Plc among several firms involved in tax disputes in the country.
Next Story
