Pune News: Swiggy Faces Fresh Tax Assessment Orders Totaling Rs 165 Crore
Pune News: Swiggy Faces Fresh Tax Assessment Orders Totaling Rs 165 Crore
Swiggy, the leading online food and grocery delivery platform, is facing fresh tax-related issues for the financial year 2021-22. In a recent regulatory update, the company revealed it had received two tax assessment notices, with a combined demand exceeding Rs 165 crore.
One of these notices, issued by the Profession Tax Officer in Pune, includes a penalty of Rs 7.59 crore. The tax authorities allege that Swiggy failed to properly deduct profession tax from its employees’ salaries, violating the Maharashtra State Tax on Professions, Trades, Callings & Employments Act, 1975.
Swiggy has contested the allegations, asserting that it has strong legal grounds to challenge the order and plans to file a review or appeal soon. “The Company believes that it has strong arguments against the Order and is taking necessary steps to protect its interest through review/appeal,” the company stated. Swiggy also emphasized that this issue will not significantly affect its financial stability or operations.
In addition to this, Swiggy has been served another assessment order by the Deputy Commissioner of Income Tax, Central Circle 1(1), Bangalore, demanding an extra Rs 158 crore for the same fiscal year.
This larger demand is linked to disputes over cancellation charges paid to merchants, which tax officials claim should not have been allowed under Section 37 of the Income-tax Act, 1961. The order also highlights interest income from tax refunds, which the authorities allege was not accurately reported.
Swiggy responded, saying, “The Company has received an assessment order for the period April 2021 to March 2022 where an addition of Rs 158.25 crore has been made.” Despite the hefty demands, Swiggy remains confident in its legal position and is actively preparing to appeal. The company reassured that these developments are unlikely to have any major impact on its financial health or day-to-day business operations.
