TeamLease Services Limited has received an assessment order under the Karnataka Goods and Services Tax Act, 2017, with a penalty of ₹19,65,215 for the financial year 2021-22. The company disclosed this development on December 30, 2025, in compliance with SEBI listing regulations.

Assessment Order Details

The order was issued by the Office of the Deputy Commissioner of Commercial Taxes (Large Taxpayers Unit – LTU), Bengaluru, Karnataka, and received by the company on December 29, 2025. The assessment pertains to the period from April 2021 to March 2022.

Nature of Dispute

The assessment order confirms a demand against the exemption claimed by TeamLease Services for the supply of farm labour. The tax authority has disputed the company's classification of these services, arguing that:

• The supply falls under apprenticeship training rather than labour for agriculture operations
• The seeds produced by the customer do not qualify as agriculture operations
• The exemption claimed under the prescribed notification is not applicable

Company's Response and Financial Impact

TeamLease Services has stated that the order will have no material impact on its financials, operations, or other activities. The company has classified this as a contingent liability in its financial statements. The management plans to pursue recovery from customers by invoking indemnity clauses in declarations received from them.

Next Steps

The company has announced its intention to file an appeal with the appellate authority within the permissible timeline of three months from the date of receipt of the order. This gives TeamLease Services until March 29, 2026, to submit its appeal against the assessment order.

The disclosure was made in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and relevant SEBI circulars dated July 13, 2023, and November 11, 2024.

Nippon India Mutual Fund has significantly increased its stake in TeamLease Services Limited, a prominent player in the human resources services sector. The fund's recent open market purchases have elevated its shareholding from 6.47% to 7.95%, showcasing a strong vote of confidence in the company's potential.

Key Details of the Acquisition

Impact and Implications

The substantial increase in Nippon India Mutual Fund's stake in TeamLease Services is a noteworthy development in the human resources services sector. This move could be interpreted as a positive signal regarding the fund's outlook on TeamLease's business model and future prospects.

Market Perspective

While the exact reasons behind Nippon India Mutual Fund's decision to increase its stake are not disclosed, such moves by institutional investors often attract attention from market participants. It may prompt other investors to reassess their positions or take a closer look at TeamLease Services' performance and potential.

About TeamLease Services

TeamLease Services Limited is a key player in India's human resources services industry. The company offers a wide range of HR solutions, including temporary staffing, permanent recruitment, and other HR-related services. This increased investment by a major mutual fund could be seen as an endorsement of the company's business strategy and its position in the HR services market.

As the job market continues to evolve, companies like TeamLease Services play a crucial role in bridging the gap between employers and job seekers. The increased stake by Nippon India Mutual Fund might indicate their confidence in TeamLease's ability to capitalize on these market dynamics.

Investors and market watchers will likely keep a close eye on TeamLease Services' performance in the coming quarters to see if this increased investment translates into enhanced business outcomes and shareholder value.