Wipro slips over 2% on tax demand claim of Rs 816 crore

NEW DELHI: Wipro slipped over 2 per cent in morning trade on Friday, a day after India's third largest software firm Wipro was slapped with an over Rs 816 crore claim by tax department.

At 10:30 a.m.; Wipro was trading 1.8 per cent lower at Rs 333.85. It hit a low of Rs 331 and a high of Rs 337.20 in trade today.

“The Bangalore-headquartered company said the "draft assessment order" from tax authorities for 2008-09 fiscal has arised primarily due to denial of deduction under section 10A of the Income Tax Act, 1961, in respect of profit earned by its undertaking in the Software Technology Park (STP) at Bangalore,” PTI reported.

In March 2013, the company received the draft assessment order, on similar grounds as that of earlier years, with a demand of Rs 816.4 crore (including interest of Rs 84.8 crore) for the financial year ended March 31, 2009.

"The company will file its objections against the said demand before the Dispute Resolution Panel, within the time limit prescribed under the statute," Wipro said in a filing on the US Securities and Exchange Commission (SEC).