Updater Services Limited has received a tax order worth ₹11.07 lakh from the Deputy Commissioner in Chennai, Tamil Nadu, under Section 73 of the Central Goods and Services Tax (CGST) Act, 2017. The company disclosed this development through a regulatory filing under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Order Details

The tax order addresses specific compliance issues identified by the tax authorities. The following table summarizes the key details of the order:

Basis of Tax Order

The order stems from discrepancies in the company's GST filings and tax credit claims. The specific violations identified include:

• Disallowance of ineligible Input Tax Credit (ITC)
• Disallowance of ITC claimed return defaulters tax non-payers

Company's Response and Legal Strategy

Updater Services Limited has expressed disagreement with the tax order, stating that it was passed without considering the response they had submitted against the initial notice. The company's position and planned actions are outlined below:

The company plans to challenge the order through appropriate legal channels, including filing a writ petition or appeal before the appellate authority.

Financial Impact Assessment

Despite the amount involved in the tax order, Updater Services Limited expects minimal financial impact. The company's assessment suggests that the order lacks merit, and they are confident about their position in potential legal proceedings. Based on their evaluation, the company has indicated that the financial amount impact is expected to be nil.

Regulatory Compliance

The disclosure was made in compliance with SEBI regulations, specifically under Clause 20 of Para A of Part A of Schedule III of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, read with SEBI Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024.

Updater Services Limited Managing Director and Promoter, Raghunandana Tangirala, has recently increased his stake in the company through a market purchase. This move, disclosed in compliance with SEBI insider trading regulations, offers insights into the promoter's confidence in the company's prospects.

Transaction Details

The insider trading disclosure reveals the following key information:

Implications of the Purchase

This acquisition, while modest in scale, represents a positive signal from the company's leadership. The increase in Tangirala's shareholding from 24.08% to 24.10% demonstrates a continued commitment to the company's future.

Regulatory Compliance

Updater Services Limited has promptly informed both the BSE and NSE exchanges about this transaction, adhering to the SEBI (Prohibition of Insider Trading) Regulations, 2015. This transparency is crucial for maintaining investor trust and market integrity.

About Updater Services Limited

Updater Services Limited, formerly known as Updater Services Pvt Ltd, is engaged in business services. The company, headquartered in Chennai, operates under the CIN L74140TN2003PLC051955.

Market Implications

While insider purchases are generally viewed positively by the market, investors should consider this information as part of a broader analysis. It's important to note that insider transactions, while informative, should not be the sole basis for investment decisions.

Investors and market watchers may keep a close eye on any further developments or insider activities related to Updater Services Limited in the coming days.