homebusiness Newscompanies NewsSiemens faces ₹24 crore service tax demand, plans legal challenge

Siemens faces ₹24 crore service tax demand, plans legal challenge

Shares of Siemens Ltd ended at ₹3,629.95, down by ₹82.50, or 2.33% on the BSE.

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By Jomy Jos Pullokaran  Nov 23, 2023 10:38:51 PM IST (Published)

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Siemens faces ₹24 crore service tax demand, plans legal challenge
Global technology and manufacturing conglomerate Siemens Ltd on Thursday (November 23) said the company received a service tax demand notice amounting to ₹24 crore from the Commissioner, CGST & Central Excise, Belapur Commissionerate.

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The demand, made under section 73(1) read with section 73(2) of the Finance Act, 1994, alleges a shortfall in service tax payments during FY2008-09, FY 2010-11, and FY 2011-12, the company said in a regulatory filing.
The order also specifies the imposition of interest under section 75 of the Finance Act, 1944, along with a penalty of ₹24 crore under section 78 of the Finance Act, 1994.
The alleged discrepancy revolves around the underpayment of service tax, related to the variance in values disclosed in financial statements compared to service tax returns.
Siemens, in response, is diligently reviewing the order and has expressed its intent to pursue appropriate legal remedies to contest the demand. The company asserts that it does not anticipate any material financial impact resulting from this order.
The direction from the commissioner was received by Siemens on November 13, 2023. The company has cited the delay in disclosure as unintentional, attributing it to an oversight promptly rectified once brought to the attention of the appropriate company executives.
Shares of Siemens Ltd ended at ₹3,629.95, down by ₹82.50, or 2.33% on the BSE.

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