United Breweries Ltd. Receives Order Regarding Tax Litigation
United Breweries Ltd. has received an order from the Deputy Commissioner of State Tax, Maharashtra State VAT Department. The order, dated March 30, 2026, and received April 1, 2026, concerns the non-submission of declaration forms in C & F for a concessional rate of tax.The demand issued under Section 9(2) of the Central Sales Tax Act 1956 totals ₹ 22,50,12,884, encompassing ₹ 9,65,72,053 in additional tax, ₹ 10,42,97,818 in interest, and ₹ 2,41,43,013 in penalty, all pertaining to the fiscal year 2021-22.
The company is currently evaluating its course of action and anticipates defending the matter before the appellate authority. United Breweries Ltd. does not expect a significant financial impact beyond a minimal statutory pre-deposit required for the appeal.
| S. No. | Particulars | Description |
|---|---|---|
| 1. | Brief details of litigation | Brief details of litigation |
| ii. | Name(s) of the Opposing Party | Deputy Commissioner of State Tax, Maharashtra State VAT Department |
| iii. | Brief details of dispute /litigation | The demand is in relation to non-submission of declaration forms in C & F for concessional rate of tax. Order dated March 30, 2026 and received on April 01, 2026 is passed under Section 9(2) of Central Sales Tax Act 1956, levying additional tax of ₹ 9,65,72,053, interest ₹ 10,42,97,818 and penalty of ₹ 2,41,43,013 totalling to ₹ 22,50,12,884 for the FY 2021-22 |
| 2. | Expected financial implications, if any, due to compensation, penalty, etc. | The Company is of the belief that it has a strong case to defend the issue before the relevant appellate authority anddoesnot expect any financial impact on theCompany except for a minimal statutory pre deposit that is required to be made at the time of admission of appeal |
| 3. | Quantum of claims, if any | Enumerated in Sl. No.2 above |
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