Intellect Design Arena Gets GST Demand Of Rs 87.7 Crore
The demand relates to inter-company transactions that arise on account of transfer pricing arrangement between the company and its foreign subsidiaries.
Intellect Design Arena Ltd. said it received a Goods and Services Tax demand order of Rs 87.7 crore, including a penalty, from tax authorities in Tamil Nadu.
The demand relates to inter-company transactions that arise on account of transfer pricing arrangements between the company and its foreign subsidiaries, according to an exchange filing on Saturday.
It involves a demand of Rs 79.61 crore and a penalty of Rs 8.16 crore from the Additional Commissioner, GST and Central Excise, Chennai. The software maker is headquartered in the city.
The company said it will be pursuing legal remedies to challenge the tax demand and expects a favourable outcome.
"The company does not reasonably expect the said assessment order to have a significant financial impact on the company or its activities," the statement said.