Mahindra Satyam submits Rs 617 cr to I-T authorities

 Informing the Bombay Stock Exchange, Mahindra Satyam (formerly Satyam Computer Services) said “The company shall submit a banker’s cheque for Rs 350 crore and an unconditional bank guarantee for Rs 267 crore, upon which the Additional Commissioner of Income Tax shall withdraw the garnishee orders issued and defreeze the company bank accounts.”I-T authorities had slapped a Rs 617 crore demand on Mahindra Satyam, against which it had moved the Andhra Pradesh High Court. 

Bank guarantee

The HC in turn directed the company on Wednesday to deposit Rs 350 crore with Central Board of Direct Taxes  and also issue bank guarantee of Rs 267 crore, while posted the matter to April 20 for further hearing. Earlier, Mahindra Satyam Chairman Vineet Nayyar had said that Central Board of Direct Taxes had turned down the company’s requests not to impose the tax as the calculations were based on the accounts of the previous management and have proved to be fictitious. 

It may be noted prior to the company’s acquisition by Mahindras, Satyam Computer Services was hit by a multi-crore accounting fraud by its founder Ramalinga Raju.

The I-T department’s tax claim is based on Rs 345 crore foreign tax credit availed of by the former management of Satyam Computer, which the present leadership believes to be forged and this demand became Rs 616,53,92,660 after the imposition of interest and penalties. 

Nayyar was of the view that instead of a tax demand, the Central Board of Direct Taxes  should return Rs 200 crore, which the company overpaid to the department.