Torrent Pharmaceuticals Ltd. has been penalized Rs 20.96 lakh by the Joint Commissioner of State Tax in Lucknow under Section 73 of the Goods and Services Tax Act. The penalty was imposed for alleged irregularities in the company’s input-tax-credit availment and discrepancies between its business-to-business supply records and the sale/purchase register on the government portal for the financial year 2020-21. This is a preliminary finding of the tax authorities, and Torrent Pharmaceuticals has stated that it will appeal against the order.
The company’s financial impact from this penalty is expected to be minimal, according to a recent exchange filing. The penalty, equivalent to approximately $280,000, is a non-material amount for a large pharmaceutical company like Torrent Pharmaceuticals. The company’s primary focus will likely be on resolving the discrepancies and ensuring compliance with tax requirements rather than absorbing the financial burden of the penalty.
This penalty is a result of the continuous efforts of the tax authorities to detect and prevent tax evasion and ensure compliance with tax laws. The tax authorities have been scrutinizing companies’ records and accounting practices to identify any discrepancies or irregularities. The penalty imposed on Torrent Pharmaceuticals is a reminder for other companies to maintain accurate and transparent records, as well as to ensure compliance with tax laws and regulations.
In conclusion, the penalty imposed on Torrent Pharmaceuticals by the Joint Commissioner of State Tax is a significant reminder for companies to maintain accurate and transparent records and to ensure compliance with tax laws and regulations. While the financial impact of the penalty is likely to be minimal for the company, it is essential for companies to focus on resolving the discrepancies and ensuring compliance with tax requirements rather than simply absorbing the financial burden of the penalty.