TVS Supply Chain Solutions receives ₹0.84 crore tax penalty order

TVS Supply Chain Solutions Limited has received an order from the Income Tax Assessment Authority imposing a penalty of ₹0.84 crores for Assessment Year 2017-18. The order, issued under Section 270A of the Income Tax Act, 1961, relates to a transfer pricing adjustment. The company stated that the penalty is not expected to have a material impact on its financials, operations, or other activities and plans to appeal the decision before the appropriate authority within the stipulated time.

The disclosure was made to the exchanges in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The order was received by the company on June 29, 2026. P D Krishna Prasad, Company Secretary, signed the regulatory filing on behalf of TVS Supply Chain Solutions Limited.

Details of the Order

The following table outlines the key details of the communication received from the Income Tax Assessment Authority:

Aspect	Details
Name of Authority	Income Tax Assessment Authority
Nature of Order	Penalty issued under Section 270A of the Income Tax Act, 1961 for AY 2017-18
Date of Receipt	June 29, 2026
Violation Details	Penalty of 0.84 crores towards transfer pricing adjustment
Financial Impact	Not expected to have a material impact on financials or operations

The company has confirmed that it will be filing an appeal against the order. The management asserts that the demand does not pose a significant threat to its operational stability or financial health.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.72%	+4.23%	+17.62%	+22.12%	+2.99%	-31.65%

TVS Supply Chain Solutions has initiated arbitration proceedings to recover ₹3.69 crore from Tera Software Limited. The dispute arises from an alleged failure by Tera Software to pay outstanding dues despite TVS Supply Chain Solutions having completed its contractual obligations. The company seeks to recover the amount under a Service Agreement dated June 19, 2019, related to one of its projects.

TVS Supply Chain Solutions proposes to approach the Hon'ble High Court of Telangana under Section 11 of the Arbitration and Conciliation Act, 1996. The filing requests the appointment of a Sole Arbitrator to adjudicate the matter. The disclosure was made to the exchanges in compliance with Regulation 30 of the SEBI (Listing Regulations and Disclosure Requirements) Regulations, 2015.

The table below outlines the key details of the litigation:

Particulars	Details
Name of the Company	TVS Supply Chain Solutions Limited (TVS SCS)
Name(s) of the opposing party	Tera Software Limited (Tera Soft)
Court/ Tribunal / Agency	Hon'ble High Court of Telangana under Section 11 of the Arbitration and Conciliation Act, 1996
Brief details of dispute	TVS SCS invoked arbitration under the Service Agreement dated June 19, 2019, seeking recovery of outstanding dues due to alleged failure of Tera Soft to pay despite TVS SCS completing contractual obligations.
Expected financial implications	Recovery of ₹3.69 crore (approx.)
Quantum of claims	₹3.69 crore (approx.)

The company stated that the arbitration is being pursued to recover the approximate ₹3.69 crore outstanding amount. No further financial implications beyond the claimed amount were disclosed in the filing.