Andhra Pradesh High Court has asked Satyam to Pay Rs 350 Crore tax
The Andhra Pradesh High Court has asked the company to comply with the demand raised by the income-tax department pending final order.
With this, the company will have to pay Rs350 crore towards income tax and also show a bank guarantee of Rs267 crore.
Satyam was issued a demand for tax payment of Rs617 crore by the I-T department for accounts since 2002. The company challenged the demand at the Central Board of Direct Taxes (CBDT) by seeking a review. However, with the CBDT dismissing the company’s appeal, Satyam had approached the AP high court claiming that the computation of the tax was done on the basis of fictitious revenues shown by the company’s founder B Ramalinga Raju and that there cannot be any tax liability on non-existent income.
Responding to the petition, the high court had earlier asked the company and the I-T department not to touch Satyam’s bank accounts worth Rs1,300 crore till March 31.
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