Daijiworld Media Network - New Delhi
New Delhi, Apr 6: Online food and grocery delivery giant Swiggy has encountered fresh fiscal headwinds, receiving two assessment orders pertaining to the financial year 2021-22, which collectively demand over Rs 165 crore in taxes. In a regulatory disclosure made on Saturday, Swiggy revealed that it has been served with an order from the Office of the Profession Tax Officer in Pune, seeking Rs 7.59 crore.
This particular order alleges a discrepancy in the deduction of profession tax from employee salaries, a mandatory requirement under the Maharashtra State Tax on Professions, Trades, Callings & Employments Act of 1975. However, Swiggy has asserted its strong belief in its grounds for contesting the order and is actively preparing to file a review or appeal.
"The Company believes that it has strong arguments against the Order and is taking necessary steps to protect its interest through review/appeal," Swiggy stated in its official filing. The company further clarified that it anticipates no significant repercussions on its financial standing or operational activities as a result of this development.
This tax scrutiny emerges shortly after Swiggy received another assessment order from the Deputy Commissioner of Income Tax, Central Circle 1(1), Bangalore. This separate order demands an additional tax payment exceeding Rs 158 crore, also for the financial period spanning April 2021 to March 2022.
The larger tax demand is reportedly linked to several issues, including the disallowance of cancellation charges paid to merchants under Section 37 of the Income-tax Act, 1961. Additionally, it encompasses interest income derived from income tax refunds, which the authorities contend was not appropriately declared.
"The Company has received an assessment order for the period April 2021 to March 2022 where an addition of Rs 158,25,80,987 (one hundred and fifty-eight crores, twenty-five lakhs, eighty thousand nine hundred and eighty seven, only) has been made," Swiggy disclosed in its regulatory filing.
Swiggy has expressed confidence in its legal position and is undertaking the necessary steps to appeal this latest tax order. Mirroring its stance on the profession tax matter, the company has assured that this demand is also not expected to cause any major adverse impact on its financial health or daily operations.