Indian IT Giants Disclose Contingent Liabilities Worth Rs 22,400 Crore Amid Ongoing Legal Battles

17 Aug 2023 , 11:50 AM

Several leading Indian IT service providers have unveiled a combined total of around Rs 22,400 crore in contingent liabilities due to ongoing legal matters in India’s courts and tax forums. This revelation comes in compliance with a recent SEBI notification mandating companies to disclose the status of pending legal actions and other related issues.

Wipro, for instance, is pursuing legal action across tax authorities and courts, acknowledging that unfavorable decisions could result in potential debts of up to Rs 9,810 crore as of June 30, 2023. Infosys has reported an amount of Rs 3,894 crore in dispute, citing multiple disallowances related to STP Units, SEZ Units, deductions under Section 80JJAA, capital treatment of software expenditure, and payments to Associated Enterprises.

LTIMindtree, another prominent IT company based in Bengaluru, has disclosed claims totaling Rs 5,162 crore, with an interim stay granted by the High Court of Karnataka in a GST-related case. Tech Mahindra, the fifth-largest IT service provider, is contesting cases amounting to Rs 3,561 crore across various forums and courts.

The disclosures adhere to regulatory guidelines and highlight the potential financial impact of ongoing legal battles on these IT giants.

For feedback and suggestions, reach out to us at [e-mail]