2.4.0.8128 - Disclosure - Commitments and contingenciestruefalsefalse1false falsefalseeol_PE11654---1310-Q0007_STD_181_20130630_0http://www.sec.gov/CIK0001024732duration2013-01-01T00:00:002013-06-30T00:00:001false 4us-gaap_CommitmentsAndContingenciesDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="4%" valign="top" align="left">20.</td> <td align="left" valign="top">Commitments and contingencies</td> </tr> </table> Capital commitments As of June 30, 2013, the Company has open purchase orders totaling $49.4 million towards construction of new facilities and purchase of property and equipment. Bank guarantees As of June 30, 2013, guarantees and letters of credit provided by banks on behalf of the Company’s subsidiaries, to customs authorities and vendors for capital procurements amounted to $2.4 million. These guarantees and letters of credit have a remaining term of approximately one to five years. Other commitments The Company’s business process delivery centers in India are 100% Export Oriented units or Software Technology Parks (“STP”) and SEZs under the STP and SEZ guidelines issued by the Government of India. These units are exempted from customs, central excise duties, and levies on imported and indigenous capital goods, stores, and spares. The Company has executed legal undertakings to pay custom duties, central excise duties, levies, and liquidated damages payable, if any, in respect of imported and indigenous capital goods, stores, and spares consumed duty free, in the event that certain terms and conditions are not fulfilled. The Company has entered into a service agreement with a customer that provides such customer the option, exercisable at any time by providing 60 days’ notice to the Company to acquire an equity stake of up to 7.00% of the Company’s outstanding voting shares at fair market value. The fair market value is the volume weighted average trading price of the Company’s shares on the NASDAQ Market for five consecutive trading days immediately before the date on which the customer delivers its notice under the option. The option does not restrict the customer in any way from buying the Company’s shares in the open market. The service agreement also requires the Company to register the shares upon exercise of the option by the customer and there are no events or circumstances that would require the Company to transfer consideration under the agreement. Contingencies Income Taxes As of June 30, 2013, the Company had tax demands amounting to $54.2 million from the Income Tax Authorities (‘IT Authorities’) in India. The demands were raised mainly on account of disallowance of certain tax holiday benefits and transfer pricing adjustments. . Although, the Company has paid an amount of $18.5 million in relation to these demands, which are pending at various levels of appeals, management considers these disallowances and transfer pricing adjustments as not tenable against the Company, and therefore no provision for tax contingencies has been established related to unpaid amounts. During the three months ended June 30, 2013, the Company received Orders from the Bombay High Court, wherein most of the grounds of appeal raised by the IT Authorities were not admitted. In view of these High Court Orders, there is a substantial reduction in the tax demands as of June 30, 2013. Litigation The Company is involved in lawsuits, claims, investigations, and proceedings that arise in the ordinary course of business. The Company has been named as a defendant, in a law suit, Ashish Kumar Jain, Individually and On Behalf of All Others Similarly Situated v. iGATE Corporation and Phaneesh Murthy, which is filed in the United States District Court for the Northern District of California alleging, among other things, that the defendants deceived shareholders by failing to disclose information concerning the relationship between our former Chief Executive Officer, Phaneesh Murthy and an employee of the Company.   The Company expects to prevail in this litigation. Furthermore, management believes that the likelihood of a material loss with respect to any of these matters is remote. </div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for commitments and contingencies.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.25) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 450 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=25496072&loc=d3e14435-108349 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 440 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308 false0Commitments and contingenciesfalseCommitments and contingenciesUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.igate.com/taxonomy/role/NotesToFinancialStatementsCommitmentsAndContingenciesDisclosureTextBlock11