State-owned MSTC Limited has received a demand notice from the Income Tax Department under Section 201(1)/201(1A) of the Income Tax Act, 1961, amounting to Rs 178.40 crore for the assessment year 2024–25. The amount includes an interest component of Rs 27.85 crore.
The demand was raised by the Office of the Income Tax Officer (TDS), and the company officially received the communication on April 16, 2025. The notice was issued under Section 156 of the Income Tax Act, which pertains to a formal intimation requiring payment of dues.
MSTC Limited clarified in its exchange filing that the demand does not have any material impact on the company’s financials, operations, or other business activities at this stage. The company further stated its intention to appeal the demand before the appropriate authority.
“The demand is appealable and the company will appeal against it before the appropriate authority,” the filing stated.
MSTC Limited, a Government of India enterprise under the Ministry of Steel, is engaged in the business of e-commerce trading and disposal of scrap and surplus assets for public and private sector companies.
This development comes as part of broader scrutiny by tax authorities on compliance matters, although MSTC emphasized that it does not foresee any operational disruption due to this notice.
Disclaimer: This article is based on official disclosures made by the company and should not be construed as investment advice. Investors are advised to consult with their financial advisors before making any investment decisions.