Deepak Fertilisers and Petrochemicals Corporation Ltd. received a tax demand of about Rs. 74.89 crore from the State Tax Department, Pune, because officials wrongly applied a higher VAT rate of 13.5% instead of the correct 3% on natural gas sales to its subsidiary.
Khushi Jain | May 12, 2026 |
Deepak Fertilisers Receives Rs 74.89 Crore Tax Notice Over VAT Rate Dispute
Deepak Fertilisers and Petrochemicals Corporation Ltd informed the stock exchanges (BSE and NSE) under SEBI rules, informing them about a tax order.
On 31st March 2026, the Deputy Commissioner of State Tax, Pune, raised a demand of about Rs. 74.89 crore (including tax, interest, and penalty) against the company.
The issue arose because the department wrongly applied a higher VAT rate of 13.5% on the sale of natural gas to its subsidiary, instead of the correct 3% rate meant for captive consumption.
The company received the order on 11th May 2026 and clarified that there is no violation on its part and that the demand is not valid.
Importantly, the company stated that this order has no material impact on its financials or operations, and it will challenge the order on appeal at the appropriate forum.
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