MSTC Share Price in Focus on Receiving Tax Demand Notice of ₹178.40 Crore

MSTC Limited, a Government of India enterprise engaged in e-commerce and trading services, has disclosed a significant tax-related development. On 16th April 2025, the company informed the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) that it has received a demand notice under Section 156 of the Income Tax Act, 1961. This disclosure was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The development has raised questions about its implications for the company’s financial standing.

Details of the Tax Demand Notice

The demand has been issued by the Office of the Income Tax Officer (TDS) for the Assessment Year 2024–25. The total amount involved is ₹178.40 crore, which includes ₹27.85 crore in interest. This demand has been raised under Sections 201(1) and 201(1A) of the Income Tax Act, which typically deal with defaults related to the deduction and deposit of tax at source.

The company has confirmed the receipt of the notice and described the demand as “alleged”, indicating its intention to dispute the claim. MSTC has also stated that the matter will be appealed before the appropriate legal authority, and that all necessary steps are being taken in compliance with legal procedures.

Impact on Company Operations and Response

Despite the substantial figure involved, MSTC has explicitly stated that there will be no material impact on its financial, operational, or business activities. This assertion provides a level of assurance to investors and stakeholders that the situation is being managed with due diligence.

The official statement also underlines the company’s commitment to transparency and regulatory compliance. By making this disclosure promptly and affirming its intention to appeal, MSTC appears confident in its position and aims to resolve the matter through the prescribed legal channels.

MSTC Share Performance 

As of April 17, 2025, at 9:30 MSTC Share Price is trading at ₹531.95, reflecting a 0.92% surge from the previous closing price.

Conclusion

While the demand from the Income Tax Department is considerable, MSTC Limited has maintained that it does not foresee any disruption to its operations. The company’s response indicates a proactive and structured approach, with legal recourse already being pursued. Stakeholders can expect further updates once the appeal process progresses.

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