As per latest media reports, Tata Consultancy Services which is among the IT majors in India, has been under the scanner of taxman. The company has been under tax net for something often called “body shopping”. But according to TCS chairman Mr. Ratan Tata, they have not received any communication in regard to forking out of additional taxes from the country's Income-Tax Department.

On Friday during the 16th annual general meeting of the company, he told his shareholders “We have not received any such notice…there have not been any allegations of body shopping. You have nothing to be concerned about”.

At the same time, in separate communications to various other companies, the Department had refused to concede onshore services as software exports. This way they have made them ineligible for tax benefits. Onshore services are actually those services that are rendered by Indian staff on deputation to overseas markets.

Besides TCS for claiming tax exemption on onshore services, Infosys has been also penalized with a fine of Rs 450 crore.

Another issue that has been plaguing the IT industry currently is in regard of increased visa costs and difficulties that are linked to securing of temporary work permits.