Infosys, the renowned IT company, is facing a $225 fine from the Nevada Department of Taxation for alleged underpayment of modified business taxes within the state. The penalty pertains to a deficiency in payments for two consecutive quarters, spanning from the fourth quarter of 2021 to the first quarter of 2022, as revealed in a stock exchange disclosure made by Infosys on Monday. The term "short payment" denotes a situation where the remitted amount falls below the invoiced tax amount.
Acknowledging the communication from Nevada authorities demanding the penalty, Infosys has declared that it is currently conducting an investigation to ascertain the accuracy of the claim. The company has clarified that the purported underpayment is not anticipated to exert any significant influence on its financials, operations, or other activities.
This incident marks not the first instance of Infosys facing tax-related penalities in the United States. In August 2023, the Florida Department of Revenue imposed a penalty of $76.92 for tax underpayment in the state. Furthermore, in October 2023, the Commonwealth of Massachusetts fined Infosys $1,101.96 for the rejection of its family and medical paid leave return filings, as indicated in the report.
Adding to Infosys' tax challenges, in September 2023, it encountered issues with Indian tax authorities. The assistant commissioner of the Kelambakkam assessment circle in Chennai served the IT giant with a substantial demand notice of Rs 26.5 lakh for non-payment of Integrated Goods and Services Tax (IGST). Additionally, on the domestic front, the Commercial Tax Department of India had issued a demand notice of Rs 26.5 lakh to Infosys the previous year for integrated goods and services tax (IGCST), accompanied by penalty and interest charges
