Deepak Fertilisers Receives Order Imposing Penalty from State Tax Authority
Deepak Fertilisers & Petrochemicals Corporation Ltd (DFPC) has reported receiving an order from the State Tax authorities detailing a penalty demand.The order was issued by the Deputy Commissioner of State Tax, Nodal-3, Pune, under the reference number PUN-NOD-E- 307/27040000023V/VAT 2026-27/B-242, dated March 31, 2026. The company collected the order on May 11, 2026, at 11:30 am.
The order raises a total demand amounting to Rs. 74,89,20,261/-. This total comprises three components:
| Component | Amount |
|---|---|
| Tax | Rs. 31,04,33,269/- |
| Interest | Rs. 36,08,78,675/- |
| Penalty | Rs. 7,76,08,317/- |
The department alleged the violation involved the levy of the MVAT rate of 13.5% on the sale of Natural Gas to a subsidiary Company. DFPC contends that there was no violation or contravention, noting that the appropriate rate for this transaction should have been 3% under MVAT. This 3% rate was, according to the company, applicable for the purchase of natural gas for captive consumption, which was supported by a proforma A submitted by the subsidiary company.
The company stated that there is no material impact on its financials or operations due to the matter. Furthermore, Deepak Fertilisers asserted that the aforesaid demand is not tenable and is liable to be set aside in an appeal.
DEEPAKFERT Stock Price Movement
As of 10:59 AM, shares of Deepak Fertilizers and Petrochemicals Corporation Limited are shedding 1.78% in live trading, currently valued at ₹1255. The stock finds itself down ₹22.80, with trading action on 135,417 shares and dipping sharply from its day's high of ₹1270.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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