DEN Networks Limited has received an order from the Joint Commissioner (ADJN) of the Central Tax and Central Excise, CGST Kochi Commissionerate, for the recovery of a differential tax amount of Rs 33.26 crore, including applicable interest and an equal penalty of Rs 33.26 crore. The order pertains to the period between July 2017 and March 2022 under the provisions of the Central Goods and Services Tax (CGST) Act, 2017, and corresponding sections of the Kerala State GST Act, 2017.
The tax demand is based on the allegation that DEN Networks was liable to pay tax on the gross amount charged by the Local Cable Operator (LCO) from subscribers rather than on the amount charged by the company from the LCO. However, DEN Networks considers the order erroneous and has confirmed its intention to file an appeal against the decision.
The financial impact of this order is limited to the amount specified, and the company has clarified that the order will have no material impact on its operations or other business activities. The company received the intimation of the order via email on February 4, 2025.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
