Intellect Design Arena Ltd. announced that it has received a demand order from the Tamil Nadu tax authority for goods and services tax of Rs 877 billion, including penalties.
The request relates to intercompany transactions arising under transfer pricing arrangements between the company and its overseas subsidiaries, according to an exchange filing on Saturday.
These include a demand of Rs 7,961 crore from the Additional Commissioner of GST and Chennai Central Excise and a penalty of Rs 8,160 crore. The software maker is headquartered in the city.
The company said it is pursuing legal remedies to fight the tax claims and expects a favorable outcome.
„The company does not reasonably expect that the evaluation order will have a material financial impact on the company or its operations,“ it said in a statement.