BASF India says Karnataka Appellate Tribunal stayed recovery of tax demand

BASF India on Friday (27 March) said Karnataka Appellate Tribunal granted stay on recovery of tax demand worth Rs 52.17 crore pertaining to period 2010-11 (10 months).

BASF India had earlier informed about tax demand notices from Commercial Tax Department, Karnataka for the periods 2006-2010, 2010-13, 2014-15 and 2015-16 by treating the stock transfers of the company's Mangalore plant as interstate sales to dealers. The company had filed appeals in response to these notices and was granted stay for the periods 2006-2010, 2010-11 (2 months) and 2014-15 by the Karnataka Appellate Tribunal.

In this regard, the company informed that Karnataka Appellate Tribunal vide its order dated 19 March 2020 has granted stay on recovery of demand aggregating to Rs 52.17 crore (including interest & penalty) pertaining to the period 2010-11 (10 months).

The company said that based on the legal assessment it does not consider these stock transfers as interstate sales and is taking all the necessary legal steps to defend the matter.

Shares of BASF India dropped 3.04% to close at Rs 1,097.65 on Friday.

On a standalone basis, BASF India reported net loss of Rs 17.50 crore in Q3 December 2019 as compared to a net loss of Rs 43.94 crore in Q3 December 2018. Net sales jumped 43.79% to Rs 2,010.42 crore in Q3 December 2019 over Q3 December 2018.

BASF India is engaged in providing chemicals, plastics, performance products and crop protection products.

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