BASF India says Karnataka Appellate Tribunal stayed recovery of tax demand

BASF India on Tuesday (8 September) said Karnataka Appellate Tribunal granted stay on recovery of demand aggregating to Rs 85.49 crore pertaining to the period 2012-2013.

The Karnataka's Commercial Tax Department had earlier issued demand notices worth Rs 666.94 crore (including interest and penalty) on BASF India for the periods 2006-2007 to 2015-2016 by treating the stock transfers of the company's Mangalore plant as interstate sales to dealers. The demand was subsequently stayed by Karnataka Appellate Tribunal on recovery for the periods 2006-2007 to 2010-2011 and 2014-2015.

In this connection, Karnataka Appellate Tribunal vide its order dated 2 September 2020 has granted stay on recovery of demand aggregating to Rs 85.49 crore (including interest & penalty) pertaining to the period 2012-2013.

BASF India based on the legal assessment, does not consider these stock transfers as interstate sales and is taking all the necessary legal steps to defend the matter.

BASF India reported a net loss of Rs 29.15 crore in Q1 June 2020 as against net profit of Rs 8.20 crore in the corresponding period last year. Net sales rose 9.7% to Rs 1,765.98 crore in Q1 June 2020 from Rs 1,609.46 crore Q1 June 2019.

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

Shares of BASF India fell 0.81% to Rs 1,465.80 on BSE. The scrip has surged 84.37% from its 52-week low of Rs 795 hit on 13 March 2020.

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