United Breweries Gets Tax Demand Of Over Rs 263.70 Crore

United Breweries Ltd on Friday said it has received a tax demand of over Rs 263.70 crore, including interest and penalty from the Maharashtra State Goods & Service Tax Department.

In a regulatory filing, the company said the Deputy Commissioner of State Tax, Raigad Division, Maharashtra State Goods & Service Tax Department passed an order levying an additional tax of Rs 1,19,82,34,560, interest of Rs 1,15,03,04,218 and penalty of Rs 28,86,97,379 -- totalling to Rs 2,63,72,36,156 for FY 2019-20.

"The demand order has been raised on account of levy of 60 per cent CST on debit notes raised by UBL on Telangana State Beverage Corporation, Karnataka State Beverage Corporation, Andhra Pradesh State Beverage Corporation for reimbursement of state excise duties paid on behalf of State Beverage Corporations for the period April 2019 to March 2020," United Breweries Ltd said.

Demand is also raised on account of non-submission of declaration forms for concessional rate of tax, it added.

UBL said it believes that it "has a strong case to defend the issue before the relevant appellate authority and does not expect any financial impact on the company except for a minimal statutory pre-deposit that is required to be made at the time of admission of the appeal."

It recollected that "on similar high stacked appeal for the financial year 2018-19 wherein a demand of Rs 275 crore was raised on the company."