Shriram Finance has received an order from the Commercial Tax Officer, Chennai South, imposing a penalty of ₹46.91 lakh for the financial year 2022-2023. The penalty relates to a demand order against the erstwhile Shriram City Union Finance Limited, which was amalgamated with Shriram Finance effective April 1, 2022. The company is evaluating further actions.
Penalty Imposed
Shriram Finance has been notified of a penalty amounting to ₹46,91,115 for the financial year 2022-2023. This order, dated January 31, 2026, was issued by the Office of the Commercial Tax Officer in Chennai South, Tamil Nadu.
Reason for Penalty
The penalty is related to a show cause cum demand order that was originally issued against Shriram City Union Finance Limited, prior to its amalgamation with Shriram Finance on April 1, 2022.
Details of the Demand
The demand for F.Y 2022-2023 has arisen due to:
- Disallowance of input tax credit taken on payment of RCM.
- Credit note issued.
The total tax demand is ₹46,91,115 and a penalty of ₹46,91,115 has also been levied.
Impact Assessment
According to Shriram Finance, while there is no immediate material impact on financial operations, the company is consulting with its tax advisors to evaluate further steps regarding the received order. The reference number for Tamil Nadu state demand orders is ZD330126226973F dated January 31, 2026.
Source: BSE
