Cummins India has received two rectification orders from the Deputy Commissioner of Income Tax, Pune, demanding a total of INR 45.82 Crores. These demands relate to claims filed for the withdrawal of Secondary and Higher Education Cess for FY 2018-19 (INR 32.98 Crores) and FY 2016-17 (INR 12.84 Crores). The company believes the demands arose from errors apparent on the record and is pursuing remedial actions, expecting the demands to be quashed.
Disclosure of Rectification Orders
Cummins India Limited is making a formal disclosure regarding the receipt of two separate rectification orders from the Dy. Commissioner of Income Tax, Pune. These orders were issued under Section 155(18) of the Income-tax Act, 1961, pertaining to claims previously filed by the company.
Details of Financial Demands
The two orders impose specific demands related to the withdrawal of claims concerning the Secondary and Higher Education Cess:
- For the financial year 2018-19, a demand of INR 32.98 Crores has been raised. The order concerning this demand was received on March 30, 2026.
- For the financial year 2016-17, a demand of INR 12.84 Crores has been raised. The order concerning this demand was received on March 27, 2026.
In total, the company is facing demands aggregating approximately INR 45.82 Crores.
Company Assessment and Remedial Action
The company has evaluated the demands and concluded that they have been raised due to certain errors apparent on the face of the record. Cummins India is actively engaged in pursuing appropriate remedial actions with the relevant tax authorities. The management anticipates that, upon successful resolution through these actions, the aforesaid demands are expected to be quashed.
Impact and Compliance
Regarding the potential impact, the company has stated that the demands levied have neither any material impact on the financials nor any impact on the operational or other activities of the entity. Furthermore, no violations or contraventions were identified within the rectification orders themselves. A minor delay in formal intimation occurred as the concerned team was analyzing the impact of the orders received on March 27 and March 30, 2026.
Source: BSE
