The Hindu Business Line : Wipro to appeal against I-T notice

WIPRO Ltd has provided for only Rs 30 crore in its books against the Rs 261.4-crore income tax slapped against the billion-dollar software exporter. "We believe that the charge is not sustainable," Mr Suresh Senapaty, Chief Financial Officer, said. "We have legally vetted from outside advisor," he said, adding that majority of the tax charge did not merit a provision.

The Rs 30 crore provided for now is out of the total amount claimed by the IT department, and is in anticipation of any excess costs pending settlement of the case.

``The backlash we had, if we measure the impact on business, was not in the US, but in India, with this tax claim," the Vice-Chairman, Mr Vivek Paul, said.

The tax charge, which is seen as "the most significant backlash" will be contested in the "next higher level", Mr Senapaty said. Wipro will appeal against the income tax notice, as advised by its own legal cell and external consultant.

The National Association of Software and Services Companies (Nasscom) has taken up the tax issue on behalf of the software industry with the Government, Mr Senapaty said. However, he did not comment on talks on Wipro approaching the Prime Minister's Office for redressal.

The IT department has demanded Rs 261.4 crore from Wipro Ltd under Income Tax Act 1961, primarily on account of denial of deduction under Section 10A for the profit earned by the company from software exports from its Bangalore units, the company informed the Bombay Stock Exchange. It had been reported that similar notices were served on Tata Consultancy Services and HCL Technologies.