US Authority Imposes $225 Penalty On Infosys For Tax Violation

IT major Infosys has allegedly violated short payment of modified business tax for two quarters following which the US taxation authority fined the company with a penalty of USD 225.

Infosys underlined the imposed fine in its stock exchange disclosure on Monday. It received the penalty notification from the Nevada Department of Taxation on 25th January, stating the tax violation for Q4 2021 to Q1 2022.

Short payments refer to the payment that is less than the amount stated on the invoice.

Infosys said that it is currently assessing the situation and will decide on the next course of action after verifying the accuracy of the payment.

The Bengaluru-based company emphasised that there is no significant impact on its financials, operations, or other activities.

Meanwhile, this is not the first time Infosys has been slammed with such a penalty. In August last year, a similar charge worth USD 76.92 was imposed on the company by the Florida Department of Revenue for a shortfall of tax payments.

Later in October, the Commonwealth of Massachusetts imposed a USD 1,101.96 fine for rejection of family and medical paid leave return for the first and second quarters of 2023.

Additionally, in September Infosys was on the radar of India’s commercial taxes department. The assistant commissioner of the Kelambakkam assessment circle in Chennai sent a demand notice of Rs 26.5 lakh for integrated goods and services tax (IGST), accompanied by a penalty and interest charges.