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IT, ITeS stocks trade mixed on reports of Rs 10,000 cr service tax demand

The service tax department has sent notices to about 200 IT and ITeS companies so far, the report claimed

SI Reporter  |  New Delhi 

Direct tax receipts may be a spoiler for fiscal maths

Shares of Information Technology (IT) and IT-enabled services (ITeS) companies such as Infosys, TCS, and were trading mixed on Thursday following reports that the has demanded from them the worth nearly Rs 10,000 crore. Although the Nifty IT (up 1%) index was the leading sectoral gainer in the noon trade, most of the gains came from (up 2%), KPII (up 3%) and Tech Mahindra (up 2%).

Mindtree, and Oracle Financial Services Software lost up to 1% on the National Stock Exchange (NSE). An Economic Times report claimed that the department has sent notices to about 200 companies so far, asking them to return export benefits claimed in the last five years (2012-2016) on software provided to clients outside India. The report also said that the has additionally sought 15% along with fines. The report did not mention names of individual companies. Industry experts believe this will be a serious blow to the IT sector, which is already grappling with tighter US immigration laws and increasing automation.

First Published: Thu, November 23 2017. 12:12 IST
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