Quess Corp fell 1.65% to Rs 745.80 on BSE, extending losses for the fourth consecutive session.
Shares of Quess Corp have fallen 8.40% in four trading sessions from a recent closing high of Rs 814.25 hit on 9 July 2021.
The selling was triggered after the company on 14 July 2021, informed that the Income Tax Department conducted a survey at the company's registered office, and subsidiary, Terrier Security Services, between 8 July 2021 to 10 July 2021.
The company said it has extended full cooperation to the IT department, including providing complete information in a timely manner, and have not received any claims to date. "The key focus of the survey appears to have been to verify deductions we have previously claimed u/s 80JJAA of Income Tax Act, 1961, a section which incentivises new employment generation," it said.
The company said it has over 363,000 employees on its rolls. The firm said it observes all auditing and accounting requirements and continue to be a 100% compliant tax payer. The company paid a total of Rs 2,900 crore in tax and statutory contributions to the government in FY21, which represents about 12 times the company's normalized profit for the year, or 26% of its revenue.
"Our claims u/s 80JJAA are entirely in line with the letter, spirit and intent of the law, and aligned with prevailing industry practices. We further refute any allegations of 'concealment' of income. The queries raised to date by the Income Tax department are interpretational in nature. While we await further communication, will continue to cooperate with them even as we stand committed to vigorously defending our interpretation using all recourse available to us," it added.
On a consolidated basis, Quess Corp posted a net loss of Rs 58 crore in Q4 FY21, lower than net loss of Rs 630 crore in Q4 FY20. Net sales rose 0.3% to Rs 3,004 crore in Q4 FY21 as against Rs 2,994.59 crore in Q4 FY20.
Quess Corp is India's leading business services provider. It provides a host of technology enabled staffing and managed outsourcing services across processes such as sales & marketing, customer care, after sales service, back office operations, manufacturing, facilities and security management, HR & F&A operations, IT & mobility services etc.
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