TCS tax liabilities more than double to R8,148 cr in FY16

New Delhi, June 14: Country's largest software services firm Tata Consultancy Services (TCS) saw its tax liabilities more than doubling to R8,148.03 crore in 2015-16 from R3,962.83 in the previous fiscal.

According to TCS' Annual Report, income tax demands grew to R7,955.14 crore in 2015-16 from R3,901.82 crore in the previous fiscal.

Indirect tax demands also rose over three-fold to R192.89 crore in the said fiscal from R61.01 crore in FY2015.

The software major is scheduled to hold its annual general meeting in Mumbai on June 17 where it will consider and adopt the report along with other financial statements.

The Tata group company had reported nearly 15% growth in its revenues in 2015-16. In addition to the disputed tax demands, the Mumbai-based fir m also listed the R6,227 crore claim by Epic Systems Corp as a contingent liability for the fiscal 2015-16.

When added up, TCS' total contingent liabilities for the year stood at R15,021.49 crore for 2015-16.

As per accounting nor ms, a contingent liability is a potential financial obligation that could arise in the future because of certain developments. However, this may or may not result in an actual outgo of money.

In October 2014, Epic had filed a legal claim against TCS in the Court of Western District Madison, Wisconsin for alleged unauthorised download and misuse of Epic's confidential information and trade secrets.

In April this year, TCS received an unfavorable jury verdict awarding damages totaling R6,227.03 crore to Epic which the trial judge has indicated his intent to reduce. TCS said it expects to defend itself against the claim and believes that the claim will not sustain. PTI