Food delivery platform Swiggy said on Saturday that it has received a retrospective tax assessment order amounting to Rs 7.6 crore from the Pune tax authorities. In a regulatory filing, the Bengaluru-headquartered company said the assessment order was for the financial year 2021-22.
The order, issued by the Profession Tax Officer, Pune, was received on April 4, Swiggy said.
The order is over alleged violation of provisions pertaining to deduction of Profession Tax from the employees salary, under the Maharashtra State Tax on Professions, Trades, Callings & Employments Act, 1975, according to the filing.
How Does Swiggy View the Pune Professional Tax Demand Order?
Swiggy said that in its view, it “has strong arguments against the Order and is taking necessary steps to protect its interest through review/appeal”.
It also believes that the order has no major adverse impact on its financials and operations.
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How Swiggy Shares Have Fared in Recent Weeks
As of April 4, Swiggy hares have declined 71 per cent in a month.
The stock has fallen almost 38 per cent so far this year, sharply underperforming a 3.5 per cent fall in the headline Nifty 50 index.
On Friday, the Swiggy stock weakened by Rs 8, or 2.3 per cent, to close at Rs 337.2 apiece on BSE, in line with an overall slide in the market amid global trade war-related concerns.
The Sensex plunged 930.7 points, or 1.2 per cent, to settle at 75,364.7 that day, while the Nifty gave up 345.7 points, or 1.5 per cent, to end at 50 22,904.5.
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