Meesho Challenges Hefty Tax Demand Amid Rising Losses

E-commerce company Meesho faces a tax notice of approximately Rs 1,500 crore, including interest, which it plans to contest. The demand, for fiscal year 2023-24, is primarily based on income adjustments. Despite this, the company's finances remain stable, though expenses have significantly increased during the festive quarter.

Meesho, the e-commerce giant, has been hit with a substantial income tax demand of close to Rs 1,500 crore, including interest. The company, however, plans to contest the notice, which pertains to the assessment year 2023-24 according to a company filing.

This demand is the result of certain income adjustments made by the Income Tax Department. Meesho, disputing these changes, believes it has strong legal and factual grounds to oppose the order. In fact, a similar demand was issued for 2022-23, which is still entangled in legal proceedings.

Despite the looming tax complications, Meesho reports that its financial stability remains unaffected. However, the company has experienced a notable increase in expenses, contributing to a widened loss of Rs 490.6 crore in the festive quarter, largely due to a 44% rise in 'other expenses'. Revenue from operations saw a 31% increase to Rs 3,517.5 crore.

(With inputs from agencies.)