TCS US unit posts 93% dip in revenue for FY19, looks to tap smart booking

TCS's annual report revealed that the company reported growth across all verticals in FY19 led by the UK and Continental Europe

Tata Consultancy Services (TCS) US subsidiary’s revenue was reduced by 93 per cent last financial year, demonstrating a drastic shift in revenue booking through the American unit, according to details shared in the company’s annual report. 

Analysts are of the opinion that such a fall in its US unit’s revenue is a successful tax management initiative in terms of reducing total tax outgo in the largest market. 

This is following introduction of the Base Erosion and Anti-abuse Tax (BEAT) by the US government. 
 

To limit profit shifting by multinational companies in the country, the US had introduced BEAT in 2017.