Nuvoco Vistas Corporation Limited has informed the stock exchanges that its wholly-owned subsidiary, NU Vista Limited, has received a Show Cause Notice from the Joint Commissioner, CGST, Durgapur Audit Commissionerate. The notice proposes a denial of input tax credit and reduction in output tax liability, potentially leading to a demand of ₹15.41 crore over four years (FY 2020-21 to FY 2023-24). The company is confident in resolving the matter favorably.
Subsidiary Receives Show Cause Notice
Nuvoco Vistas Corporation Limited has disclosed a significant development concerning its wholly-owned subsidiary, NU Vista Limited. The company announced that NU Vista Limited has been issued a Show Cause Notice by the Joint Commissioner, CGST, Durgapur Audit Commissionerate, West Bengal. This notice falls under the purview of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Details of the Tax Demand
The Show Cause Notice proposes the denial of input tax credit related to various expenses, including civil construction and toll charges. It also addresses the denial of output tax liability reduction stemming from credit notes issued for sales returns and post-sale discounts. The total proposed demand aggregates to ₹15.41 crore and pertains to the period spanning four financial years: FY 2020-21 to FY 2023-24.
Company’s Position and Outlook
Nuvoco Vistas Corporation Limited stated that NU Vista Limited will file an appropriate reply to the notice. The company expressed confidence that it possesses sufficient documentary evidence to support its position. They believe that upon review of the submissions and supporting records, the matter will be appropriately resolved. Consequently, the company anticipates that this issue will not have a major financial impact on Nuvoco Vistas Corporation Limited.
Source: BSE
