Rubicon Research Limited has informed the Exchange about Pendency of Litigation(s)/dispute(s) or the outcome impacting the Company
RUBICON · price
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Rubicon Research's material step-down subsidiary AdvaGen Pharma Ltd, USA has received an income tax demand notice of ₹4,18,84,613 (about ₹4.19 crore) for assessment year 2021-22, including tax and interest. The demand arises from the tax authority denying a DTAA (Double Taxation Avoidance Agreement) exemption on income of ₹10,03,57,800 (about ₹10.04 crore), citing that the 'Make Available' clause under the India-US DTAA applies. The company plans to file an appeal before the Income Tax Appellate Tribunal (ITAT) and seek a stay on the demand. Based on legal advice from its tax advisors, Rubicon believes its position is strong and is confident of the merits of the case.
The demand is at the US subsidiary level, not the Indian parent, but it is a material disclosure. If the company loses the appeal, there could be a financial impact of about ₹4.19 crore. In the near term, this is unlikely to materially affect the stock price as the company is contesting and the amount is manageable relative to its size.