Online food and grocery delivery giant Swiggy is in hot water again—this time over a fresh set of tax issues linked to the financial year 2021-22. In a regulatory filing on Saturday, the company revealed that it has received two tax assessment orders, with the total demand exceeding Rs 165 crore. One of the orders came from the Office of the Profession Tax Officer in Pune, which slapped a Rs 7.59 crore penalty on Swiggy.
The notice alleges that Swiggy didn’t deduct profession tax correctly from its employees’ salaries, a requirement under the Maharashtra State Tax on Professions, Trades, Callings & Employments Act, 1975. Swiggy, however, isn’t backing down. The company said it believes it has strong legal grounds to challenge the order and is planning to file a review or appeal in the coming days.
“The Company believes that it has strong arguments against the Order and is taking necessary steps to protect its interest through review/appeal,” Swiggy stated in its filing. The company also clarified that the issue will not have a significant impact on its finances or operations. This development comes just days after Swiggy was served another assessment order by the Deputy Commissioner of Income Tax, Central Circle 1(1), Bangalore.
Adding to its tax woes, Swiggy has received another assessment order, this time demanding an additional Rs 158 crore for the same financial year—April 2021 to March 2022. According to the order, the larger tax demand stems from issues like cancellation charges paid to merchants, which tax authorities have disallowed under Section 37 of the Income-tax Act, 1961. It also includes interest income from tax refunds, which officials claim was not properly declared.
In a regulatory filing, Swiggy stated: “The Company has received an assessment order for the period April 2021 to March 2022 where an addition of Rs 158.25 crore has been made.”
Despite the hefty demand, Swiggy remains confident. The company said it firmly believes in its legal position and is already working on filing an appeal. Similar to the profession tax issue, Swiggy assured that this new order is unlikely to significantly impact its financial health or day-to-day operations. (With Inputs From IANS)
