Swiggy receives tax demand notices worth Rs 165 crore

New Delhi: Online food and grocery delivery company Swiggy is once again facing a tax demand notice. The company has received two tax assessment orders for the financial year 2021-22. The company said in a regulatory filing that in both these notices, a tax of Rs 165 crore has been demanded.

Swiggy said that one notice has been received from the Profession Tax Officer of Pune. In this, a tax of Rs 7.59 crore has been demanded. In the order, the company has been accused of failing to properly deduct profession tax from the salaries of employees, which is required under the Maharashtra State Profession, Trade, Calling and Employment Tax Act, 1975. However, Swiggy said that it has strong grounds to challenge the order and plans to file a review or appeal.

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Swiggy said in its filing, “The company believes that it has strong arguments against the order and is taking the necessary steps to protect its interests through review/appeal.” The company also clarified that the issue will not have any impact on its finances or operations.
Swiggy has received this notice at a time when just a few days ago the company had received a tax demand notice of Rs 158 crore from the Income Tax Office of Bengaluru. This tax demand notice is related to issues like cancellation charges given to merchants.

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This also includes interest income received from income tax refund, which the officials have claimed was not declared properly. Swiggy said that it is confident of its legal position and is taking the necessary steps to appeal against this tax demand notice. Like the profession tax case, the company said that this order will also not have any major adverse impact on its financial or day-to-day operations.