Thursday, February 16, 2006

TCS in a soup

Suit alleges India firm collected employees' tax refunds

A citizen of India working in California filed a class action lawsuit Tuesday against his India-based employer, alleging that the company collected tax refunds owed to its non-U.S. citizen workers.
Gopi Vedachalam, who transferred to the Bay Area in 2000 from Bangalore, contends he was instructed to sign over his federal and state tax refund checks to international consultancy firm Tata Consultancy Services. U.S. citizens of the company, however, were not asked to sign over their returns, his lawsuit alleges.
Vedachalam was assigned by Tata Consultancy to work as a project manager at Target in Hayward, where he made $50,000 a year. From 2000 to 2005, the refunds he signed over to Tata Consultancy totaled $25,000, according to the lawsuit filed in San Francisco's federal district court.
``As we understand it, that is his money,'' said his lawyer, San Francisco-based Steven Tindall.

Full story here

Does TCS stand for 'Tax Collection Scheme' :) ?


Anonymous Hiren said...

If true, it would be really sad as a tata company is associated with this since the Tatas are known for their integrity. A couple of years there was a similar situation in Tata finance too. Its a great pity to see the Tatas reputation going to the dogs like this. JRD must be turning in his grave.

Sun Feb 19, 07:24:00 PM 2006  
Blogger smiley said...

Does he have to pay tax... NRI?

Tue Feb 21, 09:41:00 PM 2006  

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