In a regulatory filing on Thursday, the information technology business Coforge announced that it had received a notice of income tax demand amounting to approximately 122 crore rupees. This notice included a tax demand of 97.97 crore rupees and an interest liability of 23.79 crore rupees. On December 20th, the firm discovered that it had received the notification.
"total tax demand of Rs 97,97,99,720 (including interest liability of Rs 23,79,49,419)" was the amount that Coforge reported having received, according to the description.
According to the corporation, a change in margin prompted the assessment unit to make a transfer pricing modification.
"Considering the jurisprudence around the adjustments made and the facts of the case, the Company in consultation with its tax advisors is of the view that our position will be upheld on ultimate resolution and will not have a material adverse effect on the Group's Financial Statement," according to the business statement.
About Coforge
Coforge (formerly known as NIIT Technologies), is a multinational IT company based in Noida, India and New Jersey, United States. The company is listed on National Stock Exchange of India and the Bombay Stock Exchange. It was formed in 1992 under the name NIIT Technologies Ltd., which is the software services division of the National Institute of Information Technology.
In the year 2006, the company completed the acquisition of UK Insurance Solutions Group. During the same year, the company formed a partnership with Adecco SA. In 2008, the company entered into a contract with British Airways that was worth many millions of pounds.
The "Intranet Prahari" project for the Border Security Force was finally put into action by the corporation in 2012 after receiving approval from the Government of India. In the same year, the Indian Tobacco Board and the Government of Andhra Pradesh collaborated with the company to facilitate the installation of an electronic auction system in the states of Karnataka and Andhra Pradesh.
Crew Wings, an application designed specifically for member of the airline cabin crew, was introduced by the firm in September of 2012. The Sabre Philippines Development Center was purchased by the firm in the same year.
In 2018, the Company purchased a majority interest in RuleTek, a business that provides business process management (BPM) architecture services. Following the completion of the transaction, Incessant Technologies, the digital branch of Coforge, now controls 55% of Ruletek.
NIIT Technologies was acquired by Baring Private Equity Asia in April 2019, for a total of ₹2,627 crore, which represented a 30.6% ownership in the company from the promoter group. In July 2019, Baring made an open offer to public shareholders for a total of ₹3,045 crore, which resulted in a 35% increase in the company's shareholding.
Coforge was the new name given to NIIT Technologies in the year 2020. Baring Private Equity Asia went through the process of selling its whole 70 percent ownership in Coforge in a number of different tranches between October 2020 and August 2023.
In the month of April 2021, Coforge spent ₹918 crore to purchase a sixty percent share in SLK Global Solutions. Due to the fact that the company inherited SLK's workforce of 10,000 employees, the number of employees at the company increased to 21,000 after the acquisition. A 54% share in Cigniti was purchased by Coforge in the month of May 2024.
