Natco Pharma Receives ₹60 Lakh Tax Demand Order
Natco Pharma received a tax demand order for ₹21.35 lakh, plus ₹17.18 lakh in interest and ₹21.35 lakh in penalty. The demand relates to the audit period April 2020 to December 2024 concerning RCM reporting. The company is evaluating its options.
The company has explicitly stated that there is no material impact on its financial, operational, or other activities, despite the tax demand and penalty. The total amount is not considered material relative to the company's overall financials.
The company has received a tax demand order, which is a negative development. However, the company is evaluating the matter and has stated that there is no material impact on its financials or operations, mitigating the negative sentiment.
Natco Pharma Limited has received an order from the Assistant Commissioner (ST)(FAC), Tenali Circle, Tenali, Andhra Pradesh, under the APGST & CGST Act, 2017. This order pertains to an audit conducted for the period from 1st April 2020 to 17th December 2024.
The tax demand raised amounts to ₹21,34,729, with an additional interest of ₹17,17,806 and a penalty of ₹21,34,729. The alleged contravention involves a lower amount reported under the Reverse Charge Mechanism (RCM) in GSTR 3B.
The company received the order on 13th July 2026. Natco Pharma is currently evaluating the matter and will decide on the appropriate course of action. The company has stated that there is no material impact on its financial, operational, or other activities.
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Natco Pharma Limited filed this with the NSE as a statutory disclosure, categorised under regulatory impact. It is a primary document, not a recommendation, and the desk marks it low impact, the band that almost never moves a portfolio on its own.
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