Quess Disputes I-T Stand on Unlawful Tax Sops Claims

Manpower outsourcing firm Quess Corp has disputed the income tax department’s stand that the Bengaluru-head-quartered company has concealed income by wrongfully claiming tax sops.

The government provides tax breaks under Section 80 JAA of the Income Tax Act to employer sad adding new jobs with a monthly salary cap Rs. 25,000, subject to certain conditions. The sops are available for three years.

The I-T department has said the Fairfax-controlled manpower firm has concealed abut Rs.880 crores in income over a period of time with wrong claims of tax deductions under this section.

The department, in a press note, said its investigations showed that the company “excluded certain components of emoluments” to stay below the monthly salary ceiling. It claimed tax breaks even for employees who were no longer on its payrolls, the department said.

Quess, in a note to stock exchanges, said the I-T department had carried out a survey at its registered office as well as at its subsidiary, Terrier Security Services. The company said it has about 363,000 employees and has been tax-compliant. It paid Rs. 2,900 crores in tax and other statutory contribution in 2020-21, which accounted for 26% of its revenue, the company said. S-ET

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