Vedanta Incurs Rs 1.71 Crore Tax Liability for Financial Year 2018

Vedanta Ltd, a mining and natural resources company, has received a tax demand of Rs 1.71 crore (approximately $235,000) for the financial year 2017-2018 (FY18). According to a filing with the National Stock Exchange (NSE), the company has been slapped with a demand from the Income Tax Department, alleging that Vedanta did not comply with the transfer pricing regulations. The tax authority has asked the company to pay the amount as taxes owed, along with an interest of 24.25% per annum on the outstanding amount since August 2019. The demand includes an amount of Rs 1.46 crore for income tax and an additional Rs 25 lakh as interest. Vedanta has reportedly filed an appeal with the Income Tax Appellate Tribunal (ITAT) against the tax demand. The company did not provide any further comments on the matter. The demand is a significant portion of Vedanta’s FY18 profit, which was reported to be Rs 6,443 crore (approximately $880 million).