Swiggy, the online grocery and food delivery platform, is presently facing new tax-related issues after it received two distinct assessment orders regarding the fiscal year of 2021–2022.
In a regulatory disclosure on Saturday, Swiggy announced that it has received a notice from the Professional Tax Officer's Office in Pune raising a demand of ₹7.59 crore. The notice alleges that the company has not deducted profession tax properly from the salaries of employees as required under the Maharashtra State Tax on Professions, Trades, Callings & Employments Act, 1975.
In spite of the order, Swiggy has claimed that it has a solid legal ground and is set to challenge the ruling. "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 the filing.
The company also promised that this tax matter would not affect its financial well-being or business significantly.
This follows hard on the heels of Swiggy having been issued another tax notice—this time by the Deputy Commissioner of Income Tax, Central Circle 1(1), Bangalore. This directive requires yet another ₹158.25 crore for the same fiscal year.
The higher demand pertains to certain fiscal practices, such as disallowed cancellation fees to merchants, as well as interest income on tax refunds that the authorities allege were not properly disclosed. These are subject to examination under Section 37 of the Income-tax Act, 1961.
In its filing, Swiggy revealed: "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 clarified that it is resolute in its legal position and is doing everything to appeal the order. Like the profession tax case, the company reasserted that this issue shall not result in any significant disruption to its finances or operations on a daily basis.
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