Kolte - Patil Developers Limited has informed the Exchange regarding 'Disclosure under Regulation 30'.
KOLTEPATIL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Kolte-Patil Developers has received a demand order under Section 74 of the CGST/MGST Act, 2017 from the Office of the Assistant Commissioner of State Tax, Mumbai, for a redevelopment project covering the period 1 April 2019 to 31 March 2020. The total demand is Rs. 58,22,58,380 (~Rs. 58.23 crore), including interest and penalties. The company believes the demand is arbitrary, unjustified and unsustainable in law, and plans to contest it through legal action within the permissible timelines. Importantly, the company has stated that it does not envisage any material impact on its financials, operations or other activities from this order.
Short-term sentiment may turn negative due to the sizeable tax demand notice, but the company is contesting it and has explicitly stated it expects no material financial or operational impact. Investors should watch for updates on the legal challenge, as an adverse final ruling could affect future earnings, while a favourable outcome should remove this overhang.