Indian Railway Finance Corp. received a goods and services tax demand order totaling Rs 230.55 crore via the Tamil Nadu tax authority.
The notice furnished via the assistant commissioner from the sales tax division in Chennai North includes a tax demand of Rs 209.59 crore and a penalty of Rs 20.96 crore, IRFC mentioned in an exchange filing.
The public sector firm cited that the officer has made certain GST credit disallowed and raised the GST demand for reverse charge mechanism for the FY 2020–21.
It was claimed by the IRFC that based on its assessment the above-said demand is not carried and the company is computing all the options along with filing an appeal against the order.
It was said by the company statement that a provision is there for recoverable taxes/adjustments under the Leasing Arrangement with the Ministry of Railways
IRFC mentioned that it does not notice any material impact on its financials, functions, or other activities as of the GST tax demand notice.
Previously this month, the government-owned undertaking notified the exchanges that from Dec. 2 it has appointed Ajoy Choudhury as its chief risk officer and that he will be working on a contractual basis for a fixed tenure of two years.
The board of IRFC in October has considered financing 20 rakes at Rs 700 crore for NTPC Ltd. The 20 rakes were procured as per the general-purpose wagon investment scheme under the Ministry of Railways.
IRFC in the quarter that ended September 30 has posted a 4.4% rise in the net profit to Rs 1,613 crore compared to Rs 1,545 crore in the same period last year.
Read Also: GST Impact on Indian Railway Network
The income of the corporation has surged by 2% to Rs 6900 crore in the July–September period in comparison to Rs 6,762 crore in the year-ago quarter.
