YES Bank receives service tax demand order of over Rs 6.42 crore penalty

Yes Bank on Thursday said it has received a service tax demand order, which levied a penalty of over Rs 6.42 crore.

"The Bank has received an order from the Office of the Commissioner of GST & Central Excise, Maharashtra on May 02, 2024, confirming tax liability on a service tax issue along with interest and levy of a penalty of Rs 6,41,84,437," the lender said in a regulatory filing.

It said the tax and interest demand is below the material threshold limit currently applicable to the bank.

"The bank does not expect any material impact on financial, operation or other activities of the bank due to the said order," Yes Bank said.

 

The bank will pursue an appeal against the order, it added.

Yes Bank had received two GST demand orders on May 1, 2024, which levied a penalty of over Rs 6.87 lakh.

The penalty was levied by the Manipur and Punjab GST departments amounts to Rs 5.05 lakh and over Rs 1.81 lakh, respectively.

"the bank has received two orders from the Goods and Services Tax (GST) Department, Manipur and Punjab...on April 30, 2024, raising demand for reversal of input tax credit (ITC) along with interest and levy of a penalty of Rs 5,05,940 and Rs 1,81,623, respectively," Yes Bank said in a regulatory filing.

It had said the tax and interest demand is below the material threshold limit currently applicable to the bank.

"The bank does not expect any material impact on financial, operation or other activities of the bank due to the said orders," it said.

The bank will pursue an appeal against these orders, it added.