Zydus Wellness Limited announced that its wholly-owned subsidiary, Zydus Wellness Products Limited (ZWPL), has received a tax demand of ₹10.51 million from Bihar state tax authorities. The demand was issued by the Office of Assistant Commissioner of State Tax, Patna Special, alleging short payment of tax for the fiscal year 2019-20, citing excess input tax credit claims.
As of yesterday noon, shares of Zydus Wellness Limited were trading at ₹2,155.10, down ₹14.85 or 0.68% on the National Stock Exchange (NSE).
The order, which was received on September 17, 2024, includes a penalty of ₹0.55 million. In response, ZWPL maintains that there is strong merit in its case and is actively exploring options to contest the demand, including the possibility of filing an appeal. The company emphasized that this order will not impact its financial or operational activities, and any potential repercussions will be limited to the final tax liability, interest, and penalties if applicable.
This development comes on the heels of Zydus Wellness’s recent merger with Heinz India Private Limited, marking a significant phase in the company’s growth strategy. Zydus Wellness is committed to navigating this challenge while focusing on its operational goals.
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