Asian Paints on Monday said that it has received ₹13.83 crore tax demand, with a ₹1.38 crore penalty from the Deputy Commissioner of State Tax, Chennai, Tamil Nadu.
"An order passed under relevant provisions of the Central Goods and Services Tax Act, 2017 and the corresponding provisions... demanding additional tax on outward supplies, disallowance on account of account of Input Tax Credit (ITC) mismatch between the purchases reported by the supplier in GT return and credit claimed by the company....," Asian Paints said.
Asian Paints on Monday said that it has received ₹13.83 crore tax demand, with a ₹1.38 crore penalty from the Deputy Commissioner of State Tax, Chennai, Tamil Nadu.
"An order passed under relevant provisions of the Central Goods and Services Tax Act, 2017 and the corresponding provisions... demanding additional tax on outward supplies, disallowance on account of account of Input Tax Credit (ITC) mismatch between the purchases reported by the supplier in GT return and credit claimed by the company....," Asian Paints said.
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The Mumbai-headquartered company added, "the total tax demand amounts to ₹13.83 crore and a penalty of ₹1.38 crore".
The manufacturing company told stock exchanges today that it has discharged applicable taxes on the outward supplies and has also fulfilled all the conditions.
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"The company has a strong case based on merits and will be filing rectification or appeal against the said order within the prescribed times," Asian Paints added in a BSE filing today.
The paint company said it apprised about the order to the National Stock Exchange on 30th December 2023 but due to some technical glitch, the intimation was not submitted with the BSE.
The stock of Asian Paints was down 0.16% at ₹3,395.45 at 12:30 pm.
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Asian Paint had reported 53.31% increase in consolidated net profit at ₹1,232.39 crore helped by sourcing efficiencies and moderating raw material prices.
The company had logged a net profit of ₹803.83 crore during July-September period a year ago, according to a regulatory filing by Asian Paints.
However, revenue was almost flat at ₹8,451.93 crore in the September quarter. In the year-ago period, it stood at ₹8,430.60 crore.
The company has an "improvement in gross margins by about 770 basis points in Q2 FY24 as compared to Q2 FY23," said an earning statement from Asian Paints.
Total expense was down 6.13% to ₹7,021.96 crore in Q2 FY 2023-24 as against ₹7,480.97 crore in the corresponding period a year ago.
Total income during the September quarter was at ₹8,643.77 crore, up 1.06%.
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