In a significant development, the Inland Revenue Authority of Singapore (IRAS) has imposed a penalty of SGD 97,035.9 (approximately Rs 66 lakh) on Indian IT giant Infosys for non-compliance with Goods and Services Tax (GST) payments. The penalty, communicated to Infosys on August 13, pertains to GST dues for the period of April to June 2025, according to a regulatory filing by the company late Wednesday evening.

The IRAS, responsible for tax administration in Singapore, levied the fine following an audit of Infosys’ financial transactions, spotlighting discrepancies in the timely remittance of GST obligations. Infosys, a leading global provider of IT services and consulting, stated in its filing that the penalty would have “no material impact on financials, operations, or other activities of the company,” emphasizing its robust financial position and operational continuity.

Headquartered in Bengaluru, Infosys operates extensively in Singapore, a key hub for its Asia-Pacific operations, serving clients across industries like finance, healthcare, and technology. The company’s Singapore subsidiary has been a significant contributor to its global revenue, making the penalty a notable but minor hiccup in its international operations. Industry analysts suggest the fine, while modest in the context of Infosys’ $18 billion market cap, underscores the importance of stringent tax compliance in global markets.

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Infosys has not disclosed plans to contest the penalty but is expected to address the issue promptly to maintain its reputation for regulatory adherence. The incident comes amid heightened scrutiny of multinational corporations’ tax practices in Singapore, a financial hub known for its rigorous tax enforcement. As Infosys navigates this challenge, the company remains focused on its strategic growth initiatives, including digital transformation and AI-driven solutions for its global clientele.

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