Indian staffing firm Quess Corp announced it has received a tax demand for INR 3 billion (USD 36.0 million) for the assessment year 2019-2020.

However, in a Bombay Stock Exchange filing, the group highlighted that the assessing officer in the assessment order did not provide TDS (tax deducted at source) credit of INR 1.04 billion (USD 12.5 million) due to the technical issues in the Income Tax portal.  

The company had brought to the notice of the Deputy Commissioner of Income Tax, Bengaluru, Income Tax Department (‘DCIT’) that an error has occurred during the computation of tax and that the DCIT has not granted credit for the TDS already issued under Section 143(1) of the IT Act.

“In our opinion, the assessing officer has erroneously computed the tax demand, and if the TDS credit is appropriately adjusted and on re-computation of the alleged interest, the company anticipates a significant reduction in the demand to approximately INR 1.40 billion (USD 16.8 million),” Quess Corp stated. “The company will be filing the Rectification Application under Section 154 of the IT Act and will take other necessary action to get the same rectified.”

Quess Corp added that its management will take appropriate steps to challenge the assessment order with the appropriate forum.