India goes after companies with a big tax stick
A wave of demands for payment of GST on intra-company transactions has opened up a new front between corporates and the government. A dent to the ease-of-doing-business rankings the likely first casualty. Early in August, it emerged that India’s Goods and Services Tax authorities had slapped IT services company Infosys with a whopping Rs 32,000 crore demand for unpaid taxes. The demands were centred around taxes payable on intra-group transactions—between subsidiaries and parent companies, between branch offices and head offices.
