India to Ask Banks for at Least $295 Million in Back Taxes
- Notices may be issued by April, according to two officials
- Banks can appeal tax demands but must set aside provisions
Men look up at an electronic ticker board that indicates stock figures at the Bombay Stock Exchange (BSE) in Mumbai, India, on Friday, Jan. 8, 2016. India's benchmark stock index pared its steepest weekly loss in more than four years as Chinese equities rebounded after the government suspended a circuit-breaker system and the nation's central bank moved to stabilize the yuan.
Photographer: Dhiraj Singh/BloombergIndia plans to issue demands for back taxes amounting to a total of at least 20 billion rupees ($295 million) from about a dozen banks as part of a government investigation into services levies, according to two officials with direct knowledge of the matter.
The government will issue orders for payment as early as April, the officials said, asking not to be identified because the information isn’t public. The total amount of tax demands may reach more than 100 billion rupees through 2016 as the government probe widens to include all of India’s roughly 100 lenders, the officials said.