Shares of Swiggy Limited dropped 4.61% on April 7, 2025, trading at ₹321.80, down ₹15.55 from its previous close of ₹337.35. The decline comes as the company faces mounting regulatory pressure following two significant tax-related developments.
On Sunday, Swiggy disclosed it received a fresh tax notice from the Office of the Profession Tax Officer in Pune, assessing dues of ₹7.59 crore for the April 2021 to March 2022 period. The notice alleges Swiggy violated provisions of the Maharashtra State Tax on Professions, Trades, Callings & Employments Act, 1975, by failing to properly deduct profession tax from employees’ salaries.
This notice follows closely on the heels of a much larger issue. On March 29, the Income Tax Department served Swiggy with an assessment order for FY 2021–22, raising a demand of ₹158.26 crore. The order was issued by the Deputy Commissioner of Income Tax, Central Circle – 1(1), Bangalore. Key concerns highlighted include the disallowance of cancellation charges paid to merchants and non-disclosure of interest income received from tax refunds.
Swiggy has stated that it strongly disagrees with the assessments and plans to challenge both orders through appropriate legal channels. The company maintains that the orders will not significantly affect its financials or daily operations.
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