Waaree Energies has provided a significant update regarding two tax-related matters. Following an appeal, the company achieved a substantial reduction in tax demands for the 2017-18 and 2018-19 financial years. Separately, the company has received a new assessment order for the period between April 2019 and March 2020. Management has confirmed that these developments currently have no material impact on the company’s financial or operational activities.
Appellate Relief on Tax Demands
In a positive development regarding previous audit findings, the Appellate Authority has provided relief to the company regarding its tax liabilities for the 2017-18 and 2018-19 financial years. The total demand has been significantly reduced, dropping from ₹6,95,25,249 to ₹23,62,494 for one component, and from ₹6,02,70,052 to ₹25,86,704 for the other.
New Assessment Order Received
The company also disclosed receipt of an assessment order from the state tax authorities for the period of April 2019 to March 2020. The order, which totals ₹7,52,36,584, stems from an investigation identifying issues related to the availing of ineligible Input Tax Credit (ITC) and non-compliance regarding the cross-charging of common Input Tax Credit.
Management Response and Financial Impact
Waaree Energies has clarified that these tax matters do not pose any negative impact on the company’s day-to-day operations or broader financial health. Regarding the new assessment order, the company is actively evaluating its options and intends to take appropriate legal steps, which will include filing an appeal before the relevant authorities to contest the findings.
Source: BSE
