Coforge Faces Rs 122 Crore Income Tax Demand, Asserts Confidence in Resolution

22 Dec 2023 , 11:33 AM

Coforge, an IT company, disclosed the receipt of an income tax demand notice totaling approximately Rs 122 crore, including a tax demand of Rs 97.97 crore and an interest liability of Rs 23.79 crore.

The notice, received on December 20, outlined a ‘total tax demand of Rs 97,97,99,720 (including interest liability of Rs 23,79,49,419).’

Coforge clarified that the tax demand resulted from an adjustment made under transfer pricing by the assessment unit, attributing it to a variation in margin.

Despite the notice, the company expressed confidence in the resolution process, stating that, based on jurisprudence and the case’s specific facts, the company, along with its tax advisors, believes that its position will be upheld.

Coforge further asserted that the ultimate resolution of the matter is not expected to have a material adverse effect on the Group’s Financial Statement.

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