BASF India receives revised demand notice of Rs. 85.77 Cr
Chemical

BASF India receives revised demand notice of Rs. 85.77 Cr

The revised demand notice amount is mainly after considering C-Forms submitted by BASF to the Commercial Tax Department, Karnataka and recomputation of interest.

  • By ICN Bureau | September 30, 2020

BASF India has now received a revised demand notice from the Commercial Tax Department, Karnataka, aggregating to Rs. 85.77 crores (including interest and penalty) for the period 2014-2015 earlier it was Rs. 82.74 crore including interest and penalty.

The revised demand notice amount is mainly after considering C-Forms submitted by BASF to the Commercial Tax Department, Karnataka and recomputation of interest. The Karnataka Appellate Tribunal had already granted stay on the recovery of demand pertaining to period 2014-15.

The company based on the legal assessment does not consider these stock transfers as interstate sales and is taking all the necessary legal steps to defend the matter.

As per earlier letters regarding the receipt of demand notices from the Commercial Tax Department, Karnataka, the total was aggregating to Rs. 666.94 crore (including interest and penalty) for the periods 2006-2007 to 2015-2016 by treating the stock transfers of the company’s Mangalore Plant as interstate sales to dealers and its subsequent stay by Karnataka Appellate Tribunal on recovery of demand for the periods 2006-2007 to 2010-2011, 2012-2013 and 2014-2015.

Recently, CRISIL had reaffirmed rating at 'CRISIL AAA' and assigned 'Negative' outlook on the Non-Convertible Debenture Programme of BASF India Ltd (earlier 'Rating Watch with Negative Implications'). The instruments with "CRISIL AAA" rating are considered to have the highest degree of safety regarding timely servicing of the financial obligations and carry lowest credit risk.

The ratings on the Fixed Deposits and Commercial Paper have been reaffirmed at 'FAAA/Stable' and 'CRISIL A1+', respectively.

CRISIL's Commercial Paper ratings are in addition to the credit rating of "IND A1+" awarded to the Company by India Ratings and Research Private Limited (A Fitch Group Company) for Commercial Paper programme of Rs. 750 crore.


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