Nuvoco Vistas Subsidiary Receives Show Cause Notice from State Tax Dept.
Nuvoco Vistas' subsidiary, NU Vista Limited, received a Show Cause Notice from Bihar State Tax Department for FY 2022-23. The notice proposes a demand of ₹10.70 crore plus interest and penalty related to Input Tax Credit (ITC). The company expects no major financial impact and will contest the notice.
The company explicitly states that the Show Cause Notice will not be sustained and will have no major financial impact, as they intend to contest it with supporting documents and legal precedents. This reduces the potential financial impact on the company.
The company has received a Show Cause Notice with a proposed demand of ₹10.70 crore. While this is a negative development, the company's commentary suggests confidence in contesting the notice and expects no major financial impact, thus moderating the sentiment to neutral.
Nuvoco Vistas Corporation Limited has disclosed that its wholly-owned subsidiary, NU Vista Limited, has received a Show Cause Notice from the Dy. Commissioner, State Tax (Audit), Central Division, Patna, Bihar. The notice proposes denying credit for Input Tax Credit (ITC) brought forward from previous years, erred in confirming demand of ITC already temporarily reversed, and proposed imposing tax on advances received for goods.
The proposed demand under section 73 of the CGST Act, 2017, for FY 2022-23 amounts to ₹10,70,08,912/-, with consequential interest and a 10% penalty also proposed.
The company stated that the Show Cause Notice is not expected to be sustained, as the demand is against the provisions of the law. Nuvoco Vistas Corporation Limited believes that supporting documents and legal precedents will prove the allegations wrong, and therefore, it will have no major financial impact on the company. The company will file an appropriate reply to the notice.
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Nuvoco Vistas Corporation Limited filed this with the NSE as a statutory disclosure, categorised under litigation updates. 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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See the model portfoliosA plain-language summary of a public exchange filing by Nuvoco Vistas Corporation Limited. Read the original for the full detail.