Siemens receives a Rs 24 crore tax demand order

24 Nov 2023 , 11:09 AM

On November 23, Siemens announced that it had received an order for the payment of approximately Rs 24 crore, including interest, for underpaying service tax in FY09, FY11, and FY12. The business stated that the order was received on November 13 and that the reporting delay was ‘unintentional.’

Siemens stated in an exchange filing that it has been accused in the order of underpaying service tax liabilities to the extent that they are due for the discrepancies between the values reported in financial statements and service tax filings for the fiscal years 2008–09, 2010–11, and 2011–12.

Commissioner, Central Excise & CGST, Belapur Commissionerate, has sent an order regarding the imposition of service tax, interest, and penalties under Sections 73(1), 73(2), 75, and 78 of the Finance Act, 1994. The amount of taxes due is Rs 23,68,12,903.

The business stated that it is reviewing the order and would pursue the proper legal action to challenge the demand. The order is not expected to have a materially negative financial impact on the company.

The corporation is currently litigating tax-related problems for Rs 8.12 crore in several forums; this latest ruling adds to those disputes.

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