LTIMindtree gets interim order on ₹88 Crore tax order

18 Dec 2024 , 09:23 AM

Mumbai-based IT solutions company LTIMindtree Ltd announced on Tuesday (December 17) that it has obtained an interim stay from the Karnataka High Court in a judicial challenge to the legality and validity of an order.

On December 9, 2024, the corporation filed a writ case, appealing the denial of a zero-rated supply benefit and the consequent recovery of a refund for an input tax credit that was allegedly issued in error.

During the hearing on December 17, 2024, the high court granted an interim stay on the proceedings based on the contested order until the next scheduled hearing. The petition is directed against the Union of India and the Principal Commissioner of Central Tax, Bengaluru East.

The tax authorities demanded ₹87.9 Crore, comprising ₹43.9 Crore in tax and ₹44 Crore in penalty, plus interest from April 2018 to January 2023.

While LTIMindtree is confident about the outcome based on preliminary evaluations and legal assistance, the business does not anticipate that this disagreement will have a significant financial impact. The matter is still ongoing, and the next hearing will determine future developments.

Based on a preliminary assessment, existing law, and counsel’s advice, the company is hopeful of a favorable final settlement and does not reasonably expect it to have any major financial impact on the company, it stated in its filing.

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