TVS Supply Chain Solutions Limited has received a tax order from the Gujarat State Tax Authority for the fiscal year 2021-22, as disclosed in a regulatory filing. The order involves allegations related to reverse charge liability and credit availment.

Order Details and Financial Impact

The Assistant Commissioner of Gujarat State Tax Authority has passed the order on grounds of short payment of reverse charge liability and availment of ineligible credit. The financial implications of the order are detailed in the following breakdown:

Company's Response and Assessment

TVS Supply Chain Solutions has indicated that this tax demand is not expected to have a material impact on the company's financial, operational, or other activities. The company plans to take the following actions in response to the order:

• File an appropriate response to the order
• Appeal the order before the relevant authorities
• Ensure compliance with prescribed timelines for the appeal process

Regulatory Compliance

The disclosure has been made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Background Information

The order specifically addresses issues from FY2021-22, focusing on alleged contraventions related to reverse charge mechanism compliance and credit eligibility under the Goods and Services Tax framework. The Gujarat State Tax Authority's action represents part of the ongoing tax compliance monitoring by state authorities across various business entities.

TVS Supply Chain Solutions maintains that the tax demand will not materially affect its business operations while it pursues the legal remedies available through the appellate process.

TVS Supply Chain Solutions Limited has received a tax demand order from the Maharashtra State Tax Authority, as disclosed in a regulatory filing. The order pertains to alleged violations during the financial year 2021-22.

Order Details and Financial Impact

The Deputy Commissioner, Maharashtra State Tax Authority has passed an order against the company on grounds of short payment of reverse charge liability and availment of ineligible credit. The total financial implications of the order are detailed below:

Nature of Alleged Violations

The order has been issued for FY2021-22 based on two primary grounds:

• Short payment of reverse charge liability
• Availment of ineligible credit

These allegations relate to goods and services tax (GST) compliance issues that the Maharashtra State Tax Authority has identified during their assessment of the company's tax filings for the specified financial year.

Company's Response and Impact Assessment

TVS Supply Chain Solutions has stated that this tax demand is not expected to have a material impact on the company's financial, operational, or other activities. The company has indicated its intention to contest the order through proper legal channels.

The company plans to file an appropriate response and will appeal the order before the relevant authorities within the prescribed timelines. This approach suggests that the company believes it has valid grounds to challenge the allegations made by the tax authority.

Regulatory Compliance

The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to inform stock exchanges about material events that could impact investor decisions.

The filing was submitted to both BSE Limited and National Stock Exchange of India Limited, ensuring compliance with listing requirements and maintaining transparency with stakeholders regarding potential legal and financial developments.