Mahindra and Mahindra have been fined Rs 1,69,949 by the Assistant Commercial Taxes Department, Begumpet Division, Hyderabad for not reversing VAT ITC, the company announced through an exchange filing. It also added that it is hopeful for a favourable outcome at the appellate level.
The order is applicable under the available provisions of the Telangana Value Added Tax Act, 2005 w.r.t VAT Assessment for the period 2014-15. It was passed on the contention that the company had not reversed VAT Input Tax Credit (ITC) related to certain exempt transactions.
The order was passed on July 20, 2023 and was received by the company on September 11, 2023.
The company also doesn't believe that the order will have any material financial impact.
"Based on the Company’s assessment and prevailing law, the Company is hopeful of a favourable outcome at the appellate level and does not expect the said Order to have any material financial impact on the Company," the company said in the regulatory filing.
