The world of Infosys appears to have entered a streak of stormy days. It was late in the day on Wednesday, July 31, that reports emerged that one of India's topmost IT companies had been served with a pre-show cause notice of a whopping Rs 32,000 crore for alleged tax evasion by the Karnataka state GST.
Mohandas Pai Reacts To Notice
This has created headlines with major names weighing in, with many of them criticising the development. One of the critical opinions came from company's former CFO, Mohandas Pai. Pai took to his X (formerly Twitter) to accuse the system of being coercive.
Pai, who is said to be a major proponent of the ruling establishment in the centre, said, "If this notice is correct, this is Outrageous".
Tagging the likes of the country's finance minister, the Prime Minister, Pai even went on to call this notice an instance of 'Tax Terrorism'. He said, "a case of tax-terrorism at its worst.Service exports from India are not subject to GST. Can officials interpret anything they want?"
Previously, Mohandas Pai had lauded the central government for the Union Budget that was presented by the finance minister on July 23. Pai had even called the budget transformative.
What Happened?
As per reports, one of the largest tech companies in the country was slapped with a 'pre-show cause' notice for alleged GST evasion to the tune of about Rs 32,403 crore.
The Company's Response
The company exigently responded to this development through an exchange filing late in the night on July 31.
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The company in a statement said, "Karnataka State GST authorities have issued a pre-show cause notice for payment of GST of Rs. 32,403 crores for the period July 2017 to March 2022 towards the expenses incurred by overseas branch offices of Infosys Limited. "
"The Company has responded to the pre-show cause notice. Subsequent to the publication of the news articles the Company has also received a pre-show cause notice from Director General of GST Intelligence on the same matter and the Company is in the process of responding to the same."
