Swiggy, a food and grocery delivery platform, said that it had received an assessment order with an additional tax demand of more than Rs 158 crore for the period April 2021 to March 2022.
The order was issued by the Deputy Commissioner of Income Tax, Central Circle 1 (1), Bangalore.
It concerns alleged violations such as cancellation charges paid to merchants that are prohibited by Section 37 of the Income-tax Act of 1961, as well as interest income on income tax refunds that is not taxable.
"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 stated in a regulator's filing.
The company believes it has compelling arguments against the order and is taking the necessary steps to protect its interests through review/appeal, it added.
According to the company, the order will have no significant negative impact on its finances or operations.
Swiggy Share Price
Swiggy shares closed at ₹331.55 on Tuesday, up 0.50 percent from the previous market close of ₹329.90. Swiggy's share price will be closely watched tomorrow, as the company received the tax department order after market hours on Tuesday.
The food delivery platform's shares were listed on the Indian stock exchange on November 13, 2024.
