Max Financial Services Limited (MFSL), has settled a long-pending income tax case under the dispute resolution scheme 'Direct Tax Vivad Se Vishwas, 2020’, the company said in its BSE filing. By this move, MFS became the first private sector institution to do so.
The litigation was around the capital gains from the stake sale of its telecom joint venture Hutchison Max Telecom Ltd. The company opted for the new scheme introduced by the government, during the union budget speech on February 1, 2020. Under this scheme, taxpayers whose tax demands are locked in dispute in multiple forums can pay due taxes by June 30, 2020, and get a complete waiver of interest and penalty. Availing the benefits of the scheme, MFS has paid Rs 123.78 crore for settling the litigation. The settlement was finalised with the Pr.CIT-1, Jalandhar earlier this month and due taxes have been remitted.
The company also cleared tax dues contingent liability that has been reported on the company's books for the past two decades.
MFSL is currently the holding company of India's fourth largest life insurer Max Life. It is listed on both NSE and BSE with a shareholding from Analjit Singh sponsor family and a set of institutional investors such as KKR, New York Life, Baron, Vanguard, Blackrock and Aberdeen.
