India’s second-largest IT services firm, Infosys, has received a tax demand of ₹32,403 crore ($3.87 billion) from the country’s tax authority, a document viewed by Reuters showed.
The goods and services tax (GST) demand relates to services availed by the company from its overseas branches for five years starting in 2017.
Infosys did not pay the integrated GST on the “import of services as a recipient of services,” according to the incident report.
The company set up branch offices outside the country to carry out business and included the expenses incurred towards these overseas branches as part of its export invoice from India, the Directorate General of GST Intelligence in Bengaluru said.
Further investigation into the matter is underway, according to the report.
Infosys did not immediately respond to a request for comment.