Vishal Mega Mart Limited has disclosed that its subsidiary, Airplaza Retail Holdings Private Limited, received an order from the Income Tax department in Chennai. The order pertains to the alleged non-deduction of TDS and non-payment of interest for the Financial Year 2019-20. The total demand, including tax and interest, amounts to ₹3.28 crore. The company is currently reviewing the order and evaluating its next steps.
Disclosure of Income Tax Order on Subsidiary
Vishal Mega Mart Limited has formally informed the stock exchanges regarding a recent directive received by its subsidiary, Airplaza Retail Holdings Private Limited. The communication, dated March 30, 2026, confirms that an order was issued by the Office of the Assistant Commissioner of Income Tax, TDS Circle 1(1), Chennai.
Details of the Tax Demand
The order was passed under Section 201 & 201(1A) of the Income Tax Act, 1961. It addresses alleged non-deduction of Tax Deducted at Source (TDS) and the non-payment of corresponding interest for the Financial Year 2019-20.
The total quantified monetary impact of the order is substantial, breaking down as follows:
- Tax Demand: Rs. 1,86,10,422/-
- Interest Payable: Rs. 1,42,76,321/-
- Total Demand: Rs. 3,28,86,743/- (Rupees Three Crore Twenty-Eight Lakh Eighty-Six Thousand Seven Hundred Forty-Three only).
Management Response and Impact Assessment
The company has stated that this order has no further material impact on the overall financial or operational activities of the listed entity. The Subsidiary Company is actively engaged in reviewing the complete Order and is currently in the process of evaluating the appropriate next steps to address the demand.
Source: BSE
