Mastek Limited Responds to BSE Clarification on Income Tax Order
Mastek Limited resubmitted a disclosure to BSE regarding an Income Tax Department order for FY 2022-23. The order includes additions of ₹90.95 crore for transfer pricing and ₹32.63 crore under domestic tax laws, totaling ₹123.58 crore. The company expects no material financial impact due to identified errors and plans to appeal.
While the company states no material financial impact is expected, the total addition of over ₹123 crore is substantial. The outcome of the appeal and penalty proceedings will determine the ultimate impact.
The announcement details a significant tax assessment but also provides a counterpoint that no material financial impact is expected due to identified errors and the intention to appeal. This balances the potentially negative news.
Mastek Limited has resubmitted a disclosure following a clarification from BSE Limited regarding an earlier announcement about a Final Assessment Order from the Income Tax Department for FY 2022-23. The company explained that the initial disclosure was delayed because the order was received during a weekend (May 30, 2026), and a thorough review was necessary to ensure accuracy and completeness of information before public dissemination.
The Final Assessment Order includes a transfer pricing addition of ₹90,95,38,080 and an addition under domestic tax laws of ₹32,62,88,114, totaling ₹1,23,58,26,194. The Income Tax Department has also initiated penalty proceedings under Section 270A.
Despite the additions, Mastek Limited does not anticipate any material financial implications at this stage. The company has identified apparent errors in the computation sheet annexed to the order, including an incorrect tax liability rate, non-allowance of foreign tax credit, and non-grant of credit for advance tax paid by an amalgamated subsidiary. Mastek Limited intends to file its objections and response with the Income Tax Appellate Authorities within the prescribed timelines, asserting that the order will not impact the company's financials, operations, or other activities.
What to do with a filing like this
Mastek Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Mastek Limited. Read the original for the full detail.