Tata Capital Challenges Tax Authority's Rs 413.18 Crore Demand
Tata Capital faces a Rs 413.18 crore tax demand for 2017-18 due to alleged errors. The firm believes the computation mistakes led to a tax shortfall and plans to appeal for rectification. They anticipate no major financial impacts.
- Country:
- India
Non-banking finance company Tata Capital reported receiving a reassessment order from tax authorities imposing a demand of Rs 413.18 crore for the financial year 2017-18. This notification arrives weeks after Tata Capital Financial Services Ltd (TCFSL) was merged with Tata Capital, effective April 1, 2023.
The demand, raised by the Deputy Commissioner of Income Tax, Mumbai, involves Rs 209.52 crore in taxes and Rs 202.72 crore in interest, attributed largely to alleged short credits and disallowances. In a recent stock exchange filing, Tata Capital highlighted apparent computational errors, indicating an incorrect allocation of tax credits to Tata Capital instead of TCFSL, causing an undue shortfall in credits and increased interest penalties.
Despite the tax liability claims, Tata Capital conveyed its intention to file for rectification or appeal. Confident of a favorable outcome, the company emphasized their strong legal standing and past judicial precedents supporting their position. They asserted there would be no substantial financial impact on their operations or business due to these developments.
Google News