Muthry v/s Murthy – Round 1

Myth: Muthry does not pay tax where as Murthy pays tax.

So what : Since Murthy Sire pays so much tax he needs to be listened to!!

Muthry answers: My reply is in two parts.

First let me address the reasoning.

If we were to elect whoever paid highest tax we would be having a plutocracy and not democracy. This very argument is specious.

I would have stopped at this. But recently Murthy bacame bold and made statements saying that he was paying taxes!!!!. I was very happy that IT companies in India were finally paying their dues.
However my friend in Seattle divulged a secret. Indian IT companies do not pay any tax. They have liberal tax holidays. Despite this tax holiday INFY still shows around 303 crores as taxation in 2006 balance sheet. 303 crores on an income of 2724 crores!!!! Why so less when the corporate tax rate in India is above 30%!!. My friend in Seattle taught me how Murthy comes out this figure.
Murthy deputes his servants to advanced countries such as USA and Europe. e.g When his employees work in US Infosys by law is supposed to contribute to employees retirement funds through payroll and social security taxes. It is akin to paying provident fund in India. But what wiley Murthy shows this as Income tax in India!!!. Look closer to the balance sheet. In 2005 the ratio of domestic and international tax for Infy was 1: 20!!!. Murthy claims the payroll tax paid in US as Income tax!!!! Murthy paid only some 18 crore in 2005 as domestic tax and not 303 crore which is a paper figure. Murthy stop bullshitting. After all everytime you bull shit. I have to do cleaning..

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