Tamil Nadu-Based Tax Authority Drops Tax Demand & Penalties Of ₹266.3 Crore On Dalmia Cement

New Delhi: In a relief to Dalmia Cement (Bharat) Ltd, a wholly-owned subsidiary of Dalmia Bharat, the Tamil Nadu-based tax authority has dropped the demand of tax and penalties totalling Rs 266.3 crore from the company.In a regulatory filing, Dalmia Bharat said, Dalmia Cement (Bharat) Ltd, had earlier received show cause notices under Section 74 of the Central Goods and Services Tax Act, 2017, Tamil Nadu Goods and Services Tax Act, 2017, from the Sales Tax Officer, Lalgudi, Tiruchirapalli, Tamil Nadu.

The show cause notices pertained to "some differences observed in taxable turnover and amount of ITC for the AY 2019-20 and 2022-23. In the adjudication proceedings, the Department has dropped the proposed demand...," the filing added.The Tamil Nadu tax department had issued notice for Assessment Year 2019-20, where it had demanded a tax of Rs 128.39 crore along with a penalty of Rs 19.25 crore.

While for AY 2022-23, the department has demanded a tax of Rs 59.32 crore, along with a penalty of the same amount.The Tamil Nadu-based sales tax authority has dropped tax of Rs 128.39 crore along with a penalty of Rs 19.25 crore for AY 2019-20, and tax of Rs 59.32 crore and penalty of Rs 59.32 cr for AY 2022-23.Accordingly, there will be no financial impact on Dalmia Cement (Bharat) Ltd, the filing added.

Founded in 1939, Dalmia Bharat is the fourth-largest cement manufacturer in India, with an installed capacity of 49.5 million Tonnes per annum (MTPA). 

Disclaimer: This story is from the syndicated feed. Nothing has changed except the headline.