Asian Paints revealed a tax demand of Rs 13.83 crore, accompanied by a penalty of Rs 1.38 crore, from the Deputy Commissioner of State Tax, Chennai, Tamil Nadu.
Under the Central Goods and Services Tax Act, 2017, and corresponding regulations, the demand pertains to the additional tax on outward supplies and disallowance of Input Tax Credit (ITC) due to discrepancies between reported purchases by the supplier and the credit claimed by Asian Paints.
The Mumbai-based company clarified that it has fulfilled all tax liabilities on outward supplies and met the requirements.
However, it plans to challenge the order by filing rectification or an appeal within the prescribed timeline, citing a strong case based on merits.
Although Asian Paints had informed the National Stock Exchange about the order on 30 December 2023, it acknowledged a technical issue that prevented the timely submission of this information to the BSE.
