KEI Industries has received a tax demand for costs incurred at its corporate office that were not allocated to branches and units. The company believes the demand is unjustified and is exploring legal options to contest it.
KEI Industries Limited has recently received a GST demand order from the Office of the Additional Commissioner, Central Goods & Services Tax (CGST), Delhi East. The order relates to tax liabilities identified for the financial years 2017-18 to 2020-21. According to the notice, the company is required to pay a tax amount of ₹59.03 crores under Section 74(1) of the CGST Act, 2017, along with an equal penalty under Section 122(2)(b) and applicable interest under Section 50(1) of the Act.
The tax demand is based on the allegation that KEI Industries did not properly cross-charge certain expenditures incurred at its Head Office for services provided to its branches and units. However, the company believes that the demand is not justified. KEI Industries is currently assessing the situation and considering legal options including the possibility of filing an appeal against the order.
KEI Industries has assured stakeholders that this development will not have any significant financial or operational impact on the company. The company is committed to addressing the matter through appropriate legal channels and remains confident in its position. It has also formally disclosed this information as required under SEBI regulations.
KEI Industries Limited is a well-established Indian company specializing in the manufacturing and distribution of wires and cables. With a strong presence in both domestic and international markets, the company provides high-quality electrical solutions for sectors like power, infrastructure, real estate and industrial projects.
As of February 03, 2025, at 11:05 AM, KEI Industries shares are trading at ₹3,915.70 per share, down 0.05% from yesterday’s closing price. Over the last month, the stock has fallen by 10.27%. The stock has a 52-week high and 52-week low of ₹5,039.70 per share and ₹2,900.10 per share respectively.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
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Published on: Feb 3, 2025, 3:21 PM IST
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