Tax Officials Demand Rs 46 Crore from Akzo Nobel India

27 Nov 2024 , 03:22 PM

On Wednesday, paint and coatings manufacturer Akzo Nobel India announced that it had received show-cause warnings from Karnataka and Uttar Pradesh tax authorities, requesting more than Rs 46 crore in compensation for the denial of input tax credits and unpaid taxes.

According to Akzo Nobel India’s regulatory filing, the Karnataka GST Department sent the company a show-cause notice on November 26, 2024, stating that the ITC (input tax credit) and tax owed for the April 2020–March 2021 period totalled Rs 44.5 crore, which included Rs 24 crore in tax, Rs 15.75 crore in interest, and Rs 4.8 crore in penalties.

According to a separate filing, the company also stated that on November 25, 2024, it received a show-cause notice from the Uttar Pradesh GST Department, stating that ITC and tax owed for the April 2020–March 2021 period totalled Rs 1.92 crore, which included Rs 1.75 crore in tax and Rs 17.47 lakh in penalty.

The business stated that it is “open for further submissions before the relevant authorities” in response to the show-cause notices and is working to answer within the allotted time.

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