Sep 06, 2013, 10.30 PM IST | Source: CNBC-TV18

TCS pips Infy to bag Rs 200 cr tax deal

The domestic market for IT players has been so weak that any project coming in from the government is a big deal and the tax department has gone all out with this particular software project that they have come out with. The deal value is pegged at around Rs 200 crore.

TCS has pipped Infosys in bagging a large deal for the tax department, reports CNBC-TV18's Kritika Saxena.

Also Read: TCS bags multi-million euro deal from Norway's DNB group

The domestic market for IT players has been so weak that any project coming in from the government is a big deal and the tax department has gone all out with this particular software project that they have come out with.

The deal value is pegged at around Rs 200 crore. Term is approximately 5 years, but is likely to be extended further.

Essentially this is to setup and manage a software platform called the ITBA in order to ease tax payers process of tax application, of e-filing etc and also to kind of tighten the noose around tax evasion, etc., which is something that tax department has been focusing on.

Sources say, the difference between Infosys and Tata Consultancy Services (TCS) bid has been quite substantial - indicating that TCS pricing strategy is much ahead of its peers.

There were three players that they were looking at. Tax department was finalizing TCS, Infosys and Wipro . It actually came down to TCS and Infosys and TCS’s bid was around Rs 200 crore, whereas Infosys was around Rs 350-360 crore. This deal will give TCS a big leg up in terms of expanding in this particular area.

TCS stock price

On July 22, 2014, Tata Consultancy Services closed at Rs 2531.05, up Rs 66.75, or 2.71 percent. The 52-week high of the share was Rs 2539.00 and the 52-week low was Rs 1691.00.


The company's trailing 12-month (TTM) EPS was at Rs 102.67 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 24.65. The latest book value of the company is Rs 224.90 per share. At current value, the price-to-book value of the company is 11.25.

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