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India tax department freezes certain Cognizant bank accounts: report

Reuters 

(Reuters) - India's Income Tax department has frozen Technology Solutions Corp's and deposits in and for allegedly evading a dividend distribution tax (DDT), according to a report on Tuesday.

A confirmed the report and said in a statement that a court has instructed the tax department not to take further action pending further hearings.

failed to pay the tax of more than 25 billion rupees ($385 million) in the 2016-17 financial year, newspaper reported, citing officials from the tax department. (https://bit.ly/2GyhuAQ)

said it had paid all applicable taxes due on the transaction.

The company's accounts were frozen a week back and it had approached the against the tax department, according to the report.

"Cognizant's operations, our associates and our work with clients are not impacted by actions recently attempted by the Indian Income Tax Department," the company said.

A declined to give more details, while tax department officials could not be reached for comment outside regular hours.

The U.S.-listed IT services has significant operations in where the majority of its 260,000 employees reside.

(Reporting by in Bengaluru; Editing by Shounak Dasgupta)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, March 28 2018. 03:36 IST
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