Max Estates Subsidiary Receives Show Cause Notice from Delhi Tax Department Over GST Dispute
Max Estates Limited reported that its subsidiary, Pharmax Corporation Limited, has received a show cause notice related to a Goods and Services Tax (GST) dispute for financial year 2022-23. The matter concerns allegations of excess or ineligible input tax credit concerning the company's operations.The Department of Trade and Taxes, Government of NCT of Delhi, issued the show cause notice in relation to the dispute under Section 73 of the Central Goods and Services Tax Act, 2017, and the Delhi Goods and Services Tax Act, 2017. The proposed demand covers tax, interest, and penalty.
The total amount proposed by the tax authorities aggregates to ₹ 5,90,00,108.
Details of the expected financial implications are summarized below:
| Particulars | Amount |
|---|---|
| Total Proposed Demand | ₹ 5,90,00,108 |
| Tax Component | ₹ 3,30,26,162 |
| Interest Component | ₹ 2,26,71,330 |
| Penalty Component | ₹ 33,02,616 |
The company stated that the dispute involves Pharmax Corporation Limited, a subsidiary of Max Estates Limited.
As of the current stage, no final demand or order has been passed by the authorities. The matter is presently at the show cause notice stage. Pharmax Corporation Limited is actively reviewing the matter and will take necessary steps, including filing a reply, in accordance with applicable laws.
Management confirmed that there is currently no impact on the operations or other activities of Max Estates Limited or its subsidiary. The final financial consequence of the dispute will be determined upon the outcome of the adjudication proceedings.
MAXESTATES Stock Price Movement
Shares of Max Estates Limited slipped by 0.99% on Tuesday, closing at ₹396.00 after shedding ₹3.90 from the previous close. The stock saw a traded volume of 38,442 shares during the session.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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