BASF India receives Rs 85-cr demand notice from K'taka tax dept for FY14

Chemical maker BASF India Ltd on Friday said it has received a demand notice of Rs 85.19 crore from Karnataka's tax department for the fiscal year 2013-14.

In a regulatory filing, the company said it had earlier received demand notices from Commercial Tax Department, Karnataka for the periods 2006-2010, 2010-13, 2014-15 and 2015-16 as it treated the stock transfers of the company's Mangalore plant as interstate sales to dealers.

Subsequently, the company got a stay for the periods 2006-2010, 2010-11 and 2014-15 by the Karnataka Appellate Tribunal, it added.

"The company has now received demand notice for the further period i.e. 2013-14 from the Commercial Tax Department, Karnataka aggregating to Rs. 85.19 crores (including interest & penalty) by treating the stock transfers of its Mangalore Plant as interstate sales to dealers," the filing said.

BASF India said the company is in the process of filing its detailed reply/appeals in response to the notice.

The company, 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, the filing said.