IT major TCS's Chairman Ratan Tata today said the company has not received any scrutiny notice from the Income Tax Department for claiming tax benefits on its onshore services.

"We have not received any such notice. I am not too sure of the veracity of that report. Unfortunately, people read these reports and assume that they are gospel truth. But that is simply not true," he said at the annual general meeting of the company here.

Media has reported that income tax authorities have initiated scrutiny of country's biggest software exporter TCS for claiming tax benefits on onshore services.

Through onshore services companies serve clients at their locations abroad by sending personnel from India.

He also said Tata Consultancy Services (TCS) has planned a capital expenditure of Rs 2,300-crore in FY 2012

He, however, did not elaborate about expansion plans. Tata said last year was a record breaking one for TCS and it was ranked the 9th largest in the world in terms of revenue, and No 4 by revenue and market capitalisation. It had 1.9 lakh employees as of March 2011, he added.

"We saw a growth of 32 per cent last year in the banking and financial services ( BFSI )) segment. TCS is looking for further investment opportunities in other markets. The company's focus will be on growing retail and high technology verticals in the current year. We will continue to see current growth level," Tata said.

On questions as to why the company has not given out a special dividend, he said, "It's true that I could have paid you more this time. But we would also like to have some more liquidity in case we see opportunities to acquire companies. But eventually, you will get more dividend once we do that," he said.

"Demand for services offered by Indian technology firms has been rising, but currency volatility, wage inflation and growing competition from global firms such as IBM and Accenture are key risks," he said

He also said the attrition rate at TCS is better than the industry average.

"We do not have a high rate of attrition and 14 per cent is the lowest in the industry. The greatest motivation for our employees is to bag an overseas assignment, which gives them experience of working abroad. We are the largest when it comes to giving employees overseas assignments. So, we do keep them motivated enough," he said.

"North America is a big market. We are aware that Rs 21,457 crore of our business comes from North America. But we are in the process of doing more business in Europe and other markets. About revenue from large clients, we need big anchor clients," he said. (PTI)