Diligent Media Corporation Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
DNAMEDIA · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Diligent Media Corporation has received a GST demand order from the Assistant Commissioner of State Tax, Mumbai, for approximately Rs. 3.99 crores covering tax, interest, and penalty for FY 2019-20. The demand relates to GST allegedly not levied on the transfer of leasehold rights in an industrial plot in Mumbai sold to M/s CTRL S (India) Pvt. Ltd. The tax authority treated this transfer as a taxable supply of services. The company plans to file a writ petition before the Bombay High Court, similar to a petition it already filed for a prior comparable order on the same leasehold land. The demand break-up includes roughly Rs. 1.26 crores in interest and Rs. 1.47 crores in penalty.
The Rs. 3.99 crore demand is not material relative to typical corporate balance sheets but represents a cash outflow risk if the company's legal challenge fails. Shareholders should watch for updates on the writ petition, as a favorable ruling could nullify the demand, while an unfavorable outcome would create a liability.