CHENNAI: India’s leading supply chain company TVS Supply Chain Solutions Ltd (SCS) on Friday said it has received a tax demand order of Rs 8.98 crore from the Income-Tax Department, disallowing its claim in expenses and variation in transfer pricing adjustments.
In its stock exchange filing, TVS SCS said, “We inform that TVS Supply Chain Solutions Ltd has received an order from the Income Tax Department, Assessment Unit.”
The company said it had received the order from the department on Thursday and added that the tax demand is expected to have a material impact on its financials, operations and other activities.
Earlier, on April 1, the company had said its subsidiary TVS SCS Global Freight Solutions Ltd had received a tax demand order of Rs 6.71 crore, alleging that the expenses recorded by the firm have not been reported as income by its suppliers.
Earlier this week, TVS SCS had settled its debt dispute with ZTE Telecom India and withdrawn its appeal in NCLAT against an order that rejected insolvency proceedings against the telecom gear manufacturer.
TVS SCS counsel informed the National Company Law Appellate Tribunal (NCLAT) about the settlement and requested the withdrawal of the appeal.
In March, the TVS SCS announced it is setting up a 40,000-sq-foot warehousing facility to strengthen US-based manufacturer Caterpillar, Inc.’s global supply chains on the outskirts of Chennai.