In October last year, BASF India had received demand notices from Commercial Tax Department, Karnataka for the periods 2006-2010, 2010-11 (2 months), 2014-15 by treating the stock transfers of the company’s Mangalore plant as interstate sales to dealers and its subsequent stay granted by the Karnataka Appellate Tribunal.
The company has now received demand notices for the further periods i.e. 2010-13 from the Commercial Tax Department, Karnataka aggregating to Rs 211.25 crore (including interest & penalty) by treating the stock transfers of its Mangalore plant as interstate sales to dealers. The company has also received a Notice for Rs 46.39 crore (including interest & penalty) for the period 2015-16 from Commercial Tax Department, Karnataka.
The company said it is in the process of filing its detailed reply/submission/appeals in response to these notices. The company, based on the legal assessment, does not consider these stock transfers as interstate sales and is taking all the necessary legal steps to defend the matter. The company made the announcement at the fag end of trading hours yesterday, 4 March 2020.
Shares of BASF India was up 3.75% to Rs 1,191. The scrip traded in the range of Rs 1,136.40 to Rs 1,224.80 so far.
On a consolidated basis, BASF India reported net loss of Rs 17.50 crore in Q3 December 2019 as compared to a net loss of Rs 43.94 crore in Q3 December 2018. Net sales jumped 43.8% to Rs 2,010.42 crore in Q3 December 2019 over Q3 December 2018.
BASF India is engaged in providing chemicals, plastics, performance products and crop protection products.
