Pune: Tax Officer Issues Notice to Swiggy Over Employee Deduction Dispute

Swiggy has tax demands above Rs. 165 crore from the financial year 2021-22 issued by tax authorities. One of the demands was issued by the Pune Profession Tax Officer, amounting to Rs. 7.59 crore. The officer claims that Swiggy made incorrect profession tax deductions from employee salaries. This has violated the Maharashtra State Tax Act. However, Swiggy disagrees with this and intends to challenge this order.

The second tax order issued by the tax authorities is of Rs. 158 crore. This includes disallowed cancellation fees paid to merchants under Section 37 of the Income-tax Act, 1961, as well as unreported interest income earned from tax refunds. Swiggy disagrees with this order too and plans to appeal the notice. The company says these issues won’t seriously affect its business or finances.