Former Infosys CFO, Mohandas Pai, has labeled the ₹32,000 crore GST charge imposed on the IT firm as an example of “tax terrorism.” The significant charge has sparked controversy and criticism regarding the treatment of large corporations under India’s tax regulations.
Infosys Ex-CFO Labels ₹32,000 Crore GST Demand as ‘Tax Terrorism’
Mohandas Pai, former CFO of Infosys, has criticized the ₹32,000 crore GST demand from the Bengaluru GST office as “tax terrorism.” The office alleges that Infosys has evaded taxes, a claim Infosys denies, stating it has fulfilled all its GST obligations and that the tax does not apply to the expenses in question.
Pai expressed his concerns to Moneycontrol, urging the finance ministry to address what he views as a serious threat to investment in India. He emphasized that Indian software services, which have been exporting for over 30 years, typically enjoy GST exemptions on export revenues.
Pai criticized the government’s approach, suggesting it undermines the business-friendly environment promised by Prime Minister Modi and disrupts industry operations. He has called on Nasscom, the trade body, to intervene to prevent further damage to the sector.
Social Media Reaction:
Pai’s comments have sparked mixed reactions online, with some supporting his views while others point out inconsistencies in his stance.
One user wrote, “Pai’s term ‘tax terrorism’ hits the mark. We’re aiming for a $30 trillion economy, yet these actions are a setback.”
Another commented, “Pai praised the budget and high taxation policies earlier. Now, facing a tax notice, he’s calling it ‘tax terrorism.'”
A third user responded, “Pai is upset about tax issues but continues to support the current administration despite its controversial policies.”