Swiggy receives ₹158 crore tax demand notice; plans to challenge order

Food and grocery delivery platform Swiggy on Tuesday said it received an assessment order with an additional tax demand of over Rs 158 crore for the period between April 2021 and March 2022.

The order has been issued by Deputy Commissioner of Income-tax, Central Circle 1 (1), Bangalore.

It relates to alleged contraventions including cancellation charges paid to merchants disallowed under Section 37 of the Income-tax Act 1961 and interest income on income tax refund not being offered to tax.

"The Company has received an assessment order for the period April 2021 to March 2022 where an addition of Rs 158,25,80,987 (one hundred and fifty-eight crores twenty five lakhs, eighty thousand nine hundred and eighty seven, only) has been made," Swiggy said in a regulatory filing.

The company believes that it has strong arguments against the order and is taking necessary steps to protect its interest through review/appeal, it added.

The company said the order has no major adverse impact on its financials and operations.