Yatharth Hospital, Two Subsidiaries Face Rs 47.08 Cr Tax Demand Plus Rs 15.94 Cr Interest; Company to Appeal Orders:

Yatharth Hospital & Trauma Care Services Ltd. has received final assessment orders from the Income Tax Department for the company and two of its subsidiaries, AKS Medical & Research Centre Pvt. Ltd. and Ramraja Multispeciality Hospital & Trauma Centre Pvt. Ltd.

According to the company, the orders have resulted in a total tax demand of Rs 29.66 crore plus Rs 11.42 crore interest for Yatharth Hospital for assessment years 2014-15 to 2024-25. AKS Medical has received a demand of Rs 8.50 crore plus Rs 2.48 crore interest for assessment years 2022-23 to 2024-25, while Ramraja has been asked to pay Rs 5.64 crore plus Rs 2.04 crore interest for assessment year 2023-24.

With these final orders, the income tax assessment proceedings for the above-mentioned years have now been concluded. However, the company and its subsidiaries plan to challenge the orders by filing appeals before the Commissioner of Income Tax (Appeals).

Yatharth Hospital said it has taken advice from external tax consultants and is confident of receiving substantial relief through the appellate process. The company expects the tax demands to be significantly reduced.

Based on its current assessment, Yatharth Hospital said it does not expect to make any provision for these tax demands in its financial statements at present.