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Amazon Web Services (AWS) India, an arm of e-Amazon India, said it will contest the Income Tax Department's tax demand of Rs 549 crore on fees earned from its cloud computing services."We believe the ITA's (Indian Tax Authority) decision is without merit. We intend to defend our position vigorously, and we expect to recoup taxes paid," Amazon Web Services spokesperson told ET.

ET reported on Tuesday that the Income Tax department had served a demand notice to Amazon Web Services (AWS), a subsidiary of Amazon group, for recovery of Rs 549 crore tax on account of income earned by the company from cloud computing services.

The department has raised a demand of Rs 190.85 crore for 2014-15 and Rs 358.27 crore for 2016-17 under section 147 of the IT Act, which is used where it is believed that the assessee had left some portion of income unreported.

The rest is here:
AWS India to contest tax demand on cloud income - The Economic Times