Siemens gets Tax Demand Notice of Rs.29.4 crore from Income Tax Department

Technology firm Siemens Ltd announced that it has received a prospective tax demand notice from the Deputy Commissioner of Income Tax, Circle 8(2)(1), totalling approximately Rs.29.4 crore on Friday (August 30).

“This is meant to notify you that on 30th August 2024 at around 12.15 pm, the Company received an order from the Deputy Commissioner of Income-tax, Circle 8(2)(1) with a potential tax demand of INR 293.87 million (approx.) (the ‘Order’),” in accordance with a stock exchange filing.

This order adds to the company’s current tax litigations and disputes, totalling around Rs.77.5 crore.

“After analyzing this Order, the total cumulative amount involved in ongoing litigations and disputes with the Deputy Commissioner of Income-tax, Circle 8(2)(1) as of date is INR 774.76 million (approx.), which exceeds the current materiality threshold of the company,” according to the statement.

The amount now exceeds Siemens’ current materiality level, indicating an important financial consideration for the corporation.

“The company is not expecting any material financial impact on account of these orders,” according to the statement.

Siemens Ltd shares closed at Rs.6,896.85, up Rs.27.05 (0.39%) on the BSE.