Wipro Ltd said on Friday that the Rs 261.4 crore (Rs 2.61 billion) demand notice slapped on the company by the Income Tax department had a "bigger impact than the backlash in the US" and added that it would file an appeal against it.

"The backlash we had, if we measure the impact on business, was not in the US, but in India, with this tax claim," Wipro vice chairman Vivek Paul told reporters in Bangalore.

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Wipro corporate vice president Suresh Senapaty said the firm would appeal against the notice, as advised by its legal cell and outside consultants.

He said the firm had not made provision for payment of tax.

Senapaty said National Association of Service and Software Companies was lobbying with the government on behalf of the software industry against the tax notice, but denied that the company had approached the prime minister's office for redressal.

The I-T department has served a Rs 261.4 crore notice on the company, denying it a tax holiday on some of the software technology park units in Bangalore under section 10-A of the IT Act, which gives a 10-year holiday for setting up such units in export processing zones.