Hindustan Zinc Faces Tax Penalty of Rs 1.81 Cr
In recent news, Vedanta Ltd, a prominent player in the mining and natural resources sector, disclosed that its Vedanta Ltd subsidiary, Hindustan Zinc, is facing a substantial tax penalty of Rs 1.81 crore.
New Delhi, India – In a statement released on Monday, Vedanta Ltd revealed that the tax authorities had served a notice on Sunday, October 8, notifying the company about the imposition of a significant penalty on its subsidiary, Hindustan Zinc.
“The company has received an order from the Assistant Commissioner, Division-A, Central GST Audit Circle, CGST, Udaipur, imposing a penalty of Rs. 1,81,06,073/- under Section 74(9) of the CGST Act 2017, in conjunction with corresponding provisions of the SGST Act, 2017, and Section 20 of IGST Act, 2017 for the period spanning July 2017 to March 2018,” Vedanta Ltd stated.
The penalty stems from a contention made by tax authorities that Hindustan Zinc had improperly availed of input tax credit during the specified period.
Despite the initial setback, Vedanta Ltd remains optimistic about the situation and is confident of securing a favorable outcome at the appellate level. The company has also stated that it anticipates no significant financial repercussions as a result of this order.
This development highlights the complexities and challenges faced by businesses in navigating the intricate landscape of India’s tax regulations. Vedanta Ltd and Hindustan Zinc will undoubtedly continue to closely monitor the situation as it progresses through the legal process.
About Hindustan Zinc:
Hindustan Zinc Limited (HZL) is an Indian company engaged in integrated mining and resource production, primarily in the fields of zinc, lead, silver, and cadmium. HZL operates as a subsidiary of Vedanta Limited. Formerly, it was under the ownership of the Government of India as a Central Public Sector Undertaking. However, it was privatized and sold to Vedanta Limited during the tenure of the Atal Bihari Vajpayee-led Bharatiya Janata Party government in 2003. HZL holds the distinction of being the world’s second-largest producer of zinc.
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