Biocon has received a Show Cause Notice from the Deputy Commissioner of Commercial Taxes, regarding discrepancies in tax payments for the financial year 2021-22. The notice proposes a demand for a tax amount of ₹81.38 lakhs, along with interest of ₹112.82 lakhs and a penalty of ₹8.13 lakhs. The company is currently assessing the notice and taking appropriate actions to address the matter.
Details of Show Cause Notice
Biocon has received a Show Cause Notice concerning potential discrepancies in tax payments. The notice, issued on September 24, 2025, originates from the Office of the Deputy Commissioner of Commercial Taxes. The core issue revolves around tax matters pertaining to the financial year 2021-22.
Financial Implications Outlined
The Show Cause Notice outlines a proposed demand encompassing:
- Tax amount of ₹81,38,513
- Interest amounting to ₹1,12,82,633
- A penalty of ₹8,13,851
Key Issues Raised
The notice highlights several key areas of concern:
- Interest demand on credit note related turnover wrongly reduced from taxable turnover: ₹92,772
- Interest demand on short declaration of outward supplies in monthly returns: ₹37,89,422
- Interest on Credit note on Exports: ₹1,18,189
- Tax, interest and penalty on wrong claim of lower tax on merchant export benefits: ₹2,05,101
- Tax, Interest and Penalty on non-payment of tax on Corporate Guarantee: ₹1,11,31,848
- Interest liability on delayed payment to suppliers beyond 180 days: ₹14,22,521
- Tax, interest and penalty for Input tax credit mis-match between monthly returns vis-à-vis input tax credit reported by suppliers: ₹34,75,144
Company’s Response
Biocon is currently reviewing the Show Cause Notice and is in the process of taking appropriate actions to address the issues raised. The company believes that there will be no material impact on the financials, operations, or other activities. The impact will be limited to the extent of the final liability as ascertained along with interest and penalty if any.
Source: BSE
