Swiggy has found itself in the taxman’s crosshairs once again. The food and grocery delivery giant has received a fresh assessment order from the Profession Tax Office in Pune, demanding Rs 7.59 crore. The issue? Alleged lapses in deducting profession tax from employee salaries during the 2021-22 financial year.
The claim is based on provisions under the Maharashtra State Tax on Professions, Trades, Callings & Employments Act, 1975. Swiggy, however, isn’t taking it lying down. In a recent regulatory disclosure, the company said it plans to contest the order, arguing that it has solid legal grounds and expects no significant financial or operational disruption as a result of this notice.
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What makes this more interesting is that the Pune demand follows a much heftier blow. Just days earlier, Swiggy disclosed a separate Rs 158 crore tax demand issued by the Deputy Commissioner of Income Tax in Bengaluru, also tied to the same fiscal year.
In that case, tax authorities flagged two major concerns: cancellation fees paid to restaurants were disallowed as deductions under Section 37 of the Income Tax Act, 1961, and interest earned on an income tax refund wasn’t offered up for taxation.
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Swiggy, for its part, remains confident. It has indicated that both matters are being challenged and won’t rattle the company’s financial stability or daily business operations.
Zomato’s main rival has clearly got its legal and finance teams working overtime this quarter.
