Infotech Lead Asia: BPO major WNS is facing additional tax demand of about Rs 557 crore by Indian tax authorities. The tax demand is due to transfer pricing issue with regard to acquisition of U.K.-based Aviva’s BPO services.
The outsourcing major, however, has challenged the I-T notices in courts of law.
WNS, according to its annual report for 2012-13 fiscal submitted to the US Securities Exchange Commission, says the tax demands include taxes on income and services are for financial years 2003 to 2010.
“We may be required to pay additional taxes in connection with audits by the Indian tax authorities,” WNS said in the annual report.
“These orders assess additional taxable income that could in the aggregate give rise to an estimated Rs 282.73 crore ($52.1 million based on the exchange rate on March 31, 2013) in additional taxes, including interest of Rs 102.94 crore ($19 million),” the company said in the report.
The firm added that from time to time, we receive orders of assessment from Indian tax authorities assessing additional taxable income on us and/or our subsidiaries in connection with their review of our tax returns. We currently have orders of assessment for fiscal 2003 through fiscal 2010 pending before various appellate authorities.
WNS recently said that by successfully executing on its key strategies it will be able to grow revenue at or above industry rates and expand our margins. WNS’s revenue less repair payments is expected to be between $460 million and $480 million, up from $436.1 million in fiscal 2013.