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Microsoft records $620 million tax benefit in India due to Supreme Court decision

"Windows 10 now has more than 1.3 billion monthly active devices," CEO Satya Nadella revealed on Microsoft's Q3 FY2021 earnings call, which essentially means that there are roughly as many devices running Windows 10 as there are people in India. It's little surprise that Windows sales are growing so sharply, what with the pandemic boosting remote working to new heights over the last year. "Over a year into the pandemic, digital adoption curves aren’t slowing down. In fact, they’re accelerating, and it's just the beginning," Nadella said. It is very significant that unlike streaming services, Microsoft's finances are not suffering from accelerated demand slowing down, and is in fact continuing to grow in spite of the fact that in many parts of the world, lockdowns are a thing of the past. Microsoft made US$41.7 billion in revenue this quarter. Microsoft gets tax benefit from India Microsoft said it recorded a tax benefit of US$620 million due to a favourable ruling in the Supreme Court of India in March. As the company tells it: In March 2021, the India Supreme Court issued a decision on withholding taxes in the case of Engineering Analysis Centre of Excellence Private Limited vs The Commissioner of Income Tax. The decision involves appeals filed by 86 individual companies operating in India, some dating back to 2012. Microsoft was not a party to any of the appeals but is impacted by the decision. Microsoft has historically paid India withholding taxes on software sales through distributor withholding and…

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