Dalmia Cement's Tax Burden Eased: Tamil Nadu Authority Drops Rs 266.3 Crore Demand

The Tamil Nadu-based tax authority has dropped a tax and penalties demand of Rs 266.3 crore against Dalmia Cement (Bharat) Ltd, a subsidiary of Dalmia Bharat. The decision follows show cause notices regarding discrepancies in taxable turnover and ITC amounts for the years AY 2019-20 and 2022-23.

The Tamil Nadu tax authority has provided significant relief to Dalmia Cement (Bharat) Ltd by withdrawing tax and penalties amounting to Rs 266.3 crore initially demanded from the company.

According to a regulatory filing, the subsidiary of Dalmia Bharat had received show cause notices under Section 74 of the Central and Tamil Nadu Goods and Services Tax Acts, 2017. These notices were related to discrepancies found in taxable turnover and input tax credit for the assessment years 2019-20 and 2022-23.

The authority's decision to drop the tax demand for AY 2019-20, totaling Rs 128.39 crore and a penalty of Rs 19.25 crore, along with a tax demand of Rs 59.32 crore and an equivalent penalty for AY 2022-23, ensures no financial impact on the company.

(With inputs from agencies.)