In a recent turn of events, Asian Paints – which is a prominent player in India’s manufacturing landscape has found itself amid a financial challenge. The Deputy Commissioner of State Tax which is located in the state of Tamil Nadu- Chennai, has slapped the company with a tax demand of rupees 13.83 crore and a penalty of rupees 1.38 crore. The authorities have further attributed this demand to the additional tax orb on the outward supplies and it has disallowances which is further linked to an Input Tax Credit (ITC) mismatch category.
The giant has further brought the light, which highlights the full and final demand for money, including the penalty. The organization was really quick to clarify that it had previously settled applicable taxes on the outward supplies, which was meeting all the necessary conditions. Despite this setback, Asian Paints remains resolute and is freely expressing confidence in a robust case based on merits. The company intends to file an appeal against the order within the stipulated stage period.
The National Stock Exchange has already informed about this development on December 30th, 2023. However, still, there lies a technical glitch which was prevented by the timely submission of this information to the BSE. The company’s stock had experienced of a marginal dip of 0.16%, reaching ₹3,395.45 at 12:30 pm.
Noteworthy is the impressive financial performance of the giant which is presenting at the figure of 53.31% increase in net profit and it was totaling towards the figures of ₹1,232.39 crore. This growth was attributed to operational efficiencies in sourcing and a moderation in raw material prices. Despite the commendable profit figures, the company revenue remained relatively stagnant at ₹8,451.93 crore in September’23.
In response to the tax demand, the giant has assured stakeholders of its commitment to compliance and prompt resolution. The company’s proactive stance and positive financial indicators underscore its resilience amid regulatory challenges.