IBM to contest tax demand of Rs 620 crore due to undervaluation of imports

Global technology major IBM is likely to contest the tax demand of Rs 620 crore imposed by the tax authorities owing to undervaluation of imports, sources said. However, the company will put forward its arguments on valuation methodology adopted by it for imports to the tax authorities before taking legal recourse.

“IBM is preparing to present before the tax authorities the methods that were used for the valuation. If the discussion falls through, the company will take the legal route,” said a person in the know.