infosys penalty us tax violation: Infosys charged $225 penalty by US authority on tax violation

IT major Infosys has been penalised $225 for the alleged violation of “short payment of modified business tax” for two quarters by the US taxation authority, the company said in a stock exchange disclosure.
On January 25, the Nevada Department of Taxation sent a communication to the Bengaluru-based software services exporter for collection of penalty. The violation(s)/contravention(s) committed or alleged to be committed is “short payment of modified business tax for Q4 2021 to Q1 2022”, Infosys said in the disclosure on Monday evening.

Short payment refers to partial or reduced payment made that is lesser than the invoiced amount. The company is in the process of determining further steps post checking the veracity, Infosys further said.
The company said there is no material impact on financials, operations or other activities of the company.

In August last year, a similar penalty worth $76.92 was imposed by Florida department of revenue for a shortfall of payment of tax on Infosys.

Later in October, another fine of $1,101.96 from the Commonwealth of Massachusetts was imposed on Infosys for rejection of family and medical paid leave return for the first quarter and second quarter of 2023.

In September, India’s commercial taxes department, specifically from the assistant commissioner of the Kelambakkam assessment circle in Chennai also sent a demand notice of Rs 26.5 lakh for integrated goods and services tax (IGST), accompanied by a penalty and interest charges.Shares of Infosys ended marginally lower by 0.89% at Rs 1655.90 apiece on the BSE on Monday.

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