Shares of National Stock Exchange-listed Siemens Ltd were gaining at the start of trade on Friday after the firm said it would contest a massive tax demand.
What Happened: Siemens announced on November 23 that it has received an order demanding a payment of about ₹24 crore, including interest, for the short payment of service tax during financial years ended 2009, 2011 and 2012.
The company stated that it received the order on November 13, and the delay in reporting was unintentional. The order alleges that the company has short-paid the service tax liability on the difference in values disclosed in financial statements and service tax returns during the three financial years.
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Background: The order, sent by commissioner, central goods and services & central excise, Belapur Commissionerate, pertains to the liability of service tax along with interest and penalty imposed under four sections of the Finance Act, 1994, with a tax demand of₹23.68 crore.
Siemens said it is examining the order and will seek appropriate legal remedies to contest the demand. The company does not anticipate any significant financial impact due to this order.
This latest order adds to other tax-related disputes worth ₹8.12 crore that the company is already contesting at various forums.
Price Action: Siemens’ share price was up 0.27% at ₹3,629 in early trade on Friday.
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