Tax & Penalty12 May 2026, 10:56 am
Deepak Fertilisers Faces ₹74.89 Cr Tax Demand
AI Summary
Deepak Fertilisers & Petrochemicals Corporation Ltd has received an order from the Deputy Commissioner of State Tax, Nodal-3, Pune, raising a total demand of ₹74,89,20,261. This includes tax of ₹31,04,33,269, interest of ₹36,08,78,675, and a penalty of ₹7,76,08,317. The company disputes the demand, arguing that the department incorrectly levied a 13.5% MVAT rate on natural gas sales to its subsidiary, instead of the applicable 3%. Deepak Fertilisers intends to challenge the order at an appropriate forum, viewing the demand as untenable. The company does not anticipate any material impact on its financials, operations, or other activities.
Key Highlights
- Deepak Fertilisers receives order for ₹74.89 Cr from State Tax authority.
- The demand includes tax, interest, and penalty components.
- Company claims incorrect MVAT rate applied on natural gas sales.
- Deepak Fertilisers will challenge the order, deeming it untenable.
- Company anticipates no material financial impact from the order.