Mphasis Receives ₹2.3 Billion Tax Demand For FY18, FY19

MphasisLtd. on Friday said it has received an order from the Income Tax Department, Bengaluru, along with a demand notice of ₹2.32 billion for assessment years 2018-19 and 2019-20.

The demand pertains to tax deducted at source on payments made to overseas subsidiaries and associated enterprises for subcontracting services, the company said in a filing. Mphasis added that it believes the claims are not maintainable and expects no material financial impact from the development.

The company said similar matters in earlier years have seen favorable rulings for other industry players, and it is evaluating legal remedies to challenge the demand.