Swiggy Challenged by Tax Demand for Fiscal Year 2018-2019
In a recent regulatory filing, Swiggy has disclosed that it has received an order from the Deputy Commissioner of Income-Tax, TDS Circle – 3(1) in Bangalore regarding tax matters for the period from April 2018 to March 2019.
Details of the Tax Demand
The authorities have issued a tax demand amounting to ₹56,96,125, accompanied by an interest charge of ₹41,58,171. The payment due date for this amount is set for March 26, 2025.
Nature of the Dispute
This matter revolves around the non-deduction of tax as stipulated under section 194C of the Income-tax Act, 1961. This section specifically pertains to payments made to contractors, which in this case relate to cancellation charges paid to merchants by Swiggy.
Company’s Response
Swiggy is prepared to contest this demand and has indicated its intent to appeal the decision before the relevant appellate authority. A spokesperson for the company stated, “The Company believes that it has strong arguments against the Order and is taking necessary steps to protect its interest through review/appeal.”
Impact on Financials
Despite the significant tax request, Swiggy has assured its stakeholders that this order is not expected to have a major adverse effect on the company’s financial status or operational capabilities.
