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.

TeamLease Services Limited has witnessed significant developments in both its shareholding structure and international expansion strategy, with recent promoter share pledging activities and continued growth in Singapore operations.

Recent Share Pledge Transaction

Hansini Management Consultant Private Limited, a promoter of TeamLease Services Limited, has pledged 84,050 equity shares representing 0.50% of the total share capital. The pledge was executed on December 16 and reported on December 17.

The shares have been pledged as security with Kotak Securities Limited for a loan against property approved for Hansini Management Consultant Private Limited. This transaction involved the transfer of shares from one demat account to another as part of the pledging process.

Previous Share Pledge Activities

Earlier, the same promoter entity had released a pledge on 84,050 equity shares in August. The shares were previously pledged to Kotak Mahindra Bank Limited as security for a loan against property worth ₹22.00 crores. Following that release, Hansini Management Consultant Private Limited's total shareholding stood at 1,31,442 shares, representing 0.78% of the total share capital.

Singapore Expansion Strategy

TeamLease Digital Singapore Pte. Ltd., a step-down subsidiary, has incorporated TeamLease Digital Solutions Pte. Ltd. as a wholly-owned subsidiary in Singapore. The incorporation was completed on September 1, with confirmation received on September 3.

This strategic expansion enhances TeamLease's presence in Southeast Asia's staffing market, positioning the company for growth in the Asia-Pacific region. The new entity strengthens the company's international footprint and operational capabilities in Singapore's competitive staffing industry.