Ircon International faces ₹43-crore VAT demand for 2014-15

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Ircon International Ltd said on Friday (April 19) it has received a VAT (value added tax) demand in respect of the RCF Raebareli project for the year 2014-15 amounting to ₹42.87 crore.

“(This) is to inform that the company has received a VAT demand in respect of RCF Raebareli project for the year 2014-15 amounting to ₹42.87 crore,” according to a stock exchange filing. The company is preferring an appeal against this demand order in the Tribunal, Bench -II, Commercial Tax Department, Lucknow,” Ircon said.

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The VAT demand, issued by the First Appeal (Deputy Commissioner Appeal), outlines the liability associated with the project. The due date for payment is set within 30 days. However, Ircon asserts that there was no default in payment, and the legal process was duly followed.

Explaining the impact on its financial and operational activities, Ircon said as the project operates on a cost-plus contract basis, the ultimate liability would be borne by the client. Regarding the delay in addressing the issue, Ircon cited its ongoing evaluation process aimed at determining the appropriate course of action

Shares of Ircon International Ltd ended at ₹217.55, down by ₹3.40, or 1.54%, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow