Kansai Nerolac Faces ₹80.29L Tax Penalty Order for ITC Disallowance
Kansai Nerolac Paints Limited has received a tax penalty order of ₹80.29 lakh from the Deputy Commissioner of State Tax, Mumbai. The penalty is for partial disallowance of Input Tax Credit claimed during FY 2021-22 in Maharashtra. The company plans to appeal against the order and does not expect it to have a material impact on its financial performance, operations, or other business activities.
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Kansai Nerolac Paints Limited has disclosed receiving a tax penalty order from the Deputy Commissioner of State Tax, Mumbai. The order imposes a penalty of ₹80.29 lakh for partial disallowance of Input Tax Credit (ITC) claimed during the financial year 2021-22.
Details of the Tax Order
The penalty order relates to the partial disallowance of Input Tax Credit (ITC) claimed by the company during the financial year 2021-22 for operations in Maharashtra.
| Parameter | Details |
|---|---|
| Issuing Authority | Deputy Commissioner of State Tax, Mumbai |
| Penalty Amount | ₹80.29 lakh |
| Legal Provision | Section 73 of CGST Act, 2017 |
| Period Covered | FY 2021-22 |
| State | Maharashtra |
Nature of Violation
The demand has arisen primarily due to the partial disallowance of Input Tax Credit that the company had claimed during FY 2021-22 for its Maharashtra operations. Input Tax Credit allows businesses to reduce their tax liability by claiming credit for taxes paid on inputs used in the production process.
Company's Response and Next Steps
Kansai Nerolac Paints has indicated its intention to challenge the order through the appropriate legal channels. The company plans to file an appeal against the tax order.
Key aspects of the company's response include:
- Plans to file an appeal against the tax order
- Confidence in defending its position based on available documentation
Financial Impact Assessment
According to the company's regulatory disclosure, the tax order is not expected to have a material impact on its financial performance, operations, or other business activities.
| Impact Assessment | Company's Position |
|---|---|
| Financial Impact | No material impact expected |
| Operational Impact | No material impact expected |
| Other Activities | No material impact expected |
The company has filed this disclosure under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, which mandates listed companies to inform stock exchanges about material events that could impact their business operations or financial position.
Historical Stock Returns for Kansai Nerolac Paints
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.99% | +1.71% | +4.27% | -4.88% | -7.66% | -41.77% |
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