Great Eastern Shipping Subsidiary Receives Tax Review Notices
Great Eastern Shipping Company Ltd announced that its wholly-owned subsidiary, Greatship (India) Limited (GIL), has received eight review notices under Section 25 of the Maharashtra Value Added Tax Act, 2002. The notices are from the Joint Commissioner of State Tax, Mumbai, proposing to review orders related to financial years 2013-14, 2014-15, 2016-17, and April-June 2017. The review pertains to the treatment of charter hire of vessels/rigs, exemptions under the CST Act, and correct tax rates. The Joint Commissioner also proposes to charge consequential interest and penalties. GIL is expected to submit its objections. The financial implications are currently undetermined and may or may not exceed the materiality threshold.
Key Highlights
- Subsidiary Greatship (India) Limited received 8 tax review notices.
- Notices relate to MVAT and CST Acts for FYs 2013-17.
- Review concerns charter hire treatment and tax exemptions.
- Potential interest and penalties may be imposed.
- Financial impact is currently not quantified.
Price Impact
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