IT company Coforge has disclosed that it received an income tax demand notice amounting to approximately Rs 122 crore, comprising a tax demand of Rs 97.97 crore and an interest liability of Rs 23.79 crore. The notice was received by the company on December 20, as stated in a regulatory filing.
In its filing, Coforge specified that it has been issued a “total tax demand of Rs 97,97,99,720 (including interest liability of Rs 23,79,49,419).” The company explained that the assessment unit had made an adjustment under transfer pricing due to a variation in margin.
Despite the notice, Coforge expressed confidence in its position, stating, “Considering the jurisprudence around the adjustments made and the facts of the case, the Company in consultation with its tax advisors is of the view that our position will be upheld on ultimate resolution and will not have a material adverse effect on the Group’s Financial Statement.”
