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Last Updated: Friday, 2 April, 2004, 14:21 GMT 15:21 UK
Wipro hit by $60m tax demand
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Wipro, India's third biggest software exporter, has been ordered to pay $60m in back taxes.

The 2.6 billion rupee ($59.7m) tax bill came after officials decided the firm was not eligible for certain tax breaks on software profits.

Wipro said in a statement that it would file an appeal against the ruling.

"We have been advised that the demand is not sustainable," local media quoted Wipro company secretary V Ramachandran as saying.

Currency pressure

The tax bill comes as Wipro is facing a tougher climate because of a sharp rise in the value of the rupee against the dollar.

The rupee hit its highest level against the dollar for four years on Wednesday, putting export-oriented firms such as Wipro under pressure.

Wipro shares closed 1.6% lower at 1,349 rupees on the Bombay Stock Exchange on Friday.

Bangalore-based Wipro is a software design and IT outsourcing specialist which counts global corporations such as Boeing, General Motors and Sony among its clients.

The firm employs some 27,000 people, and has a stock market listing in New York.


SEE ALSO:
Wipro sees tech spend rebound
17 Oct 03  |  Business
Indian tech boom 'under threat'
11 Mar 03  |  Business
Indian IT export boom 'may slow'
06 Mar 03  |  Business
Wipro seals first foreign takeover
12 Nov 02  |  Business
Wipro profits inch higher
18 Oct 02  |  Business


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