US Authorities Impose a $225 Fine on Infosys for Tax Violation

Infosys, a major IT player, faces a $225 penalty for allegedly violating the US taxation authority’s rules on ‘short payment of modified business tax’ for two quarters, as disclosed in a stock exchange statement.

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On January 25, Nevada Taxation Department notifies Infosys of penalty on January 25 for ‘short payment of modified business tax’ during Q4 2021-Q1 2022.

Infosys Faces Penalty for Alleged Short Payment of Taxes – Company Assesses Next Steps

Short payment occurs when payment is less than the invoiced amount. Infosys is reviewing the situation before deciding next steps.

The company said there is no material impact on financials, operations or other activities of the company.

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Previous Penalties: Org Faced Tax-Related Fines in 2023 from Florida and Massachusetts Authorities

Last August, Florida revenue penalized them $76.92 for tax underpayment. In October, Massachusetts imposed a $1,101.96 fine for leave return rejection.

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.

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Shares of Infosys ended marginally lower by 0.89% at Rs 1655.90 apiece on the BSE on Monday.