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NRIPage | Articles | Swiggy Faces Tax Troubles with Rs 165 Crore Demand for FY 2021-22 | Get Indian Desi Latest Political News & Updates in USA. Get domestic, republic government updates - NRI Page
Swiggy, the popular online food and grocery delivery platform, is facing new tax troubles with a total tax demand of over Rs 165 crore for the financial year 2021-22. The first of the two orders was issued by the Profession Tax Officer in Pune, Maharashtra, demanding Rs 7.59 crore. This order alleges that Swiggy failed to properly deduct profession tax from its employees' salaries, which is required under the Maharashtra State Tax on Professions, Trades, Callings & Employments Act, 1975.
Swiggy, however, has expressed confidence in its legal standing, stating in a regulatory filing that it believes it has strong arguments against the order and is planning to file a review or appeal. The company assured stakeholders that the issue would not have any significant impact on its finances or operations.
In addition, Swiggy received another assessment order from the Deputy Commissioner of Income Tax, Central Circle 1(1), Bangalore, demanding an additional Rs 158 crore. This order pertains to issues such as cancellation charges paid to merchants, which were disallowed under Section 37 of the Income-tax Act, 1961, and the failure to declare interest income from income tax refunds.
Despite these tax demands, Swiggy remains confident in its legal position and is determined to challenge both orders. The company reassured the public that neither of these tax matters would significantly impact its financials or day-to-day operations.
