Online food delivery and quick commerce firm Swiggy Ltd on Tuesday, April 1, received a tax department notice of ₹158 crore from the Income Tax Department, Central Circle, Bangalore, over alleged contraventions, according to the exchange filing.
According to the BSE filing, the company received a tax department notice demanding ₹158.25 crore for the alleged violation of cancellation charges paid to the merchants and the interest income on the income tax refund.
“The Company has received an assessment order for the period April 2021 to March 2022, where an addition of INR 158,25,80,987/- has been made,” disclosed the company in the exchange filing.
The Income Tax department alleged that the food delivery firm had violated the cancellation charges paid to the merchants, which is not allowed under Section 37 of the IT Act of 1961.
Secondly, the tax department also claimed that the company had not paid tax on the interest income which it earned for the income tax refund (ITR).
“We believe that we have a strong case on merits and the Company will be filing an appeal against the order before the appropriate authority,” said the company in the BSE filing.
According to the exchange filing, this tax order will have no ‘major’ effect on the financials and the operations of the food delivery giant.
Swiggy Share Price
Swiggy shares closed 0.50 per cent higher at ₹331.55 after Tuesday’s stock market session, compared to ₹329.90 at the previous market close. Swiggy share price will be in focus tomorrow as the company received the tax department order on Tuesday after market operating hours.
The food delivery platform shares were listed on the Indian stock market on November 13, 2024.
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