Coforge receives a tax demand of Rs 83 crore for Fiscal Year 2019–20

29 Sep 2023 , 11:45 AM

Coforge, an IT services company, announced on Thursday that it had received an income tax demand for the fiscal year 2019–20 totalling Rs 83 crore. The company stated in a regulatory filing that it had received an income tax assessment order/demand order for the financial year 2019–20 (assessment year 2020–21) with a tax demand and interest. 

It continued, saying that there will be no materially negative impact on the Group’s financial statements, adding that the total tax demand is Rs 82,93,04,505 (including interest liability of Rs 25,73,70,345). According to the corporation, in collaboration with its tax advisors, ‘our position will be upheld on ultimate resolution and will not have a material adverse effect on the Group’s Financial Statement,’ given the jurisprudence surrounding the adjustments made and the facts of the case.

For the fiscal year 2023–2024, Coforge has already reported first quarter earnings earlier in July. It had made Rs 165.30 crore in profits, an increase of 10.4% from Rs 149.70 crore in the same period last year. In comparison to Rs 1829.40 crore during the first quarter of FY23, it reported operating revenue of Rs 2221 crore, an increase of 21.4%. Additionally, the Board has declared an interim dividend of Rs 19 per equity share of the firm, with a fully paid up face value of Rs 10 per share, for the fiscal year 2023–2024.

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