Coforge Faces Rs 122 Cr Income Tax Demand Notice

IT company Coforge revealed that it has received an income tax demand notice totaling approximately Rs 122 crore. This sum comprises a substantial tax demand of Rs 97.97 crore, coupled with an additional interest liability of Rs 23.79 crore. 

Coforge has attributed the tax demand to an adjustment made under transfer pricing, citing a variation in margin as the primary cause. Despite the seemingly significant financial implications, the company remains steadfast in its confidence that its position will prevail upon ultimate resolution. 

In consultation with its tax advisors, Coforge asserted that, considering the jurisprudence around the adjustments made and the specific facts of the case, the impact on the group's financial statement will not be materially adverse.

“Considering the jurisprudence around the adjustments made and the facts of the case, the Company in consultation with its tax advisors is of the view that our position will be upheld on ultimate resolution and will not have a material adverse effect on the Group’s Financial Statement,” said the company in an exchange filing.