Chemical-based multi-business company SRF Ltd on Tuesday (December 30) said it has received an order from the Joint Commissioner, CGST Commissionerate, Dehradun, demanding reversal of input tax credit (ITC) amounting to ₹15.76 crore, along with applicable interest, for the period related to a slump sale transaction and supplier-related compliance issues.The company said the authority has also imposed a penalty equivalent to the tax amount. The order was received on December 29.
According to the disclosure, the demand pertains to ITC reversal on two counts. The first relates to the slump sale of a business unit that was reported as an exempted supply. Tax authorities have taken the view that ITC reversal is required in proportion to such exempted supply. The second relates to alleged non-filing of returns by suppliers, for which the authorities have sought ITC reversal from the company.
Also Read: SRF Q2 Results: Sales up 6% from last year but operating performance a missSRF stated that, based on legal advice, the management is confident that the demand is not legally tenable. The company said it will contest the matter before the appropriate legal forums and does not expect any material impact on its financial, operational or other activities at this stage.
According to the disclosure, the demand pertains to ITC reversal on two counts. The first relates to the slump sale of a business unit that was reported as an exempted supply. Tax authorities have taken the view that ITC reversal is required in proportion to such exempted supply. The second relates to alleged non-filing of returns by suppliers, for which the authorities have sought ITC reversal from the company.
Also Read: SRF Q2 Results: Sales up 6% from last year but operating performance a missSRF stated that, based on legal advice, the management is confident that the demand is not legally tenable. The company said it will contest the matter before the appropriate legal forums and does not expect any material impact on its financial, operational or other activities at this stage.
Shares of SRF Ltd ended at ₹3,067, down by ₹8.90, or 0.29%, on the BSE today, December 30.
Also Read: SRF gains as government imposes anti-dumping duty on a key product to reduce competition
(Edited by : Shoma Bhattacharjee)
