Speciality chemical firm BASF India Ltd has received a Rs 613 crore tax demand from the Karnataka government for 2006-2015 period.
In a filing to the BSE, BASF India informed that it has received "demand notices from the Commercial Tax Department, Karnataka aggregating to Rs 324.49 crore (including interest & penalty) for the period 2006-2010, 2010-11 (2 months), 2014-15, by treating the stock transfers of its Mangalore Plant as interstate sales to dealers."
However, recovery of the demand pertaining to the period 2010-11 (2 months) and 2014-15 aggregating to Rs 98.81 crore has been stalled by the Karnataka Appellate Tribunal.
"The company has filed an appeal along with an application for grant of stay on recovery of demand pertaining to the period 2006-2010. The company has also filed a writ petition before the Karnataka High Court and has prayed for grant of stay on the demand notices.
BASF India said it has also received notices aggregating to Rs 288.43 crore (including interest and penalty) for the period 2010-11 (10 months) and 2011-14 from Commercial Tax Department, Karnataka.
The company is in the process of filing its detailed reply / submissions in response to these notices.
Based on the legal assessment, BASF India said it does not consider these stock transfers as interstate sales and is taking all the necessary legal steps to defend the matter.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)