Indian Overseas Bank has received a notice from the Chennai tax authority for goods and services tax liability of Rs 699.5 crore, including interest and penalty, according to an exchange filing on Friday.
The demand came after certain discrepancies were noticed with regard to annual scrutiny for assessment year 2020–21. The penalty amounts to Rs 35.3 crore, it said.
"The bank has a strong case on merits and has reasonable belief on the basis of expert opinion that the demand is without legal justification and will be set aside by appellate authorities," IOB said.
"The Bank has taken appropriate legal recourse in the matter and based on our assessment and legal course adopted by the bank and expert opinion, we believe that the demand order shall have no material impact on the financials, operations or other activities of the bank," it added.
Shares of IOB closed 4.56% lower at Rs 43.54 apiece on the BSE before the annoucment, compared to a 1.9% decline in the benchmark Sensex.
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