Kalpataru Projects Faces Tax Hurdles in Afghanistan and India

Kalpataru Projects International Ltd has received tax notices from the Afghanistan government for non-submission of declarations and from the GST authority in India. The demands include significant tax liabilities, additional taxes, fines, and penalties. The company anticipates possible waivers for additional taxes in Afghanistan.

Kalpataru Projects International Ltd announced on Tuesday that it has received a tax notice from the Afghanistan government for failing to submit certain declarations.

According to an exchange filing, the company said its branch office, via its consultant, was issued tax challans by the Ministry of Finance's Afghanistan Revenue Department. These notices demand payment of tax liabilities, additional taxes, and fines due to non-submission of certain declarations for FY 2020-21 and FY 2021-22. The notice was dated August 26.

The demanded tax liabilities include an AFN 8,774,153 (Rs 104.59 lakh) tax liability, AFN 12,150 (Rs 0.14 lakh) additional tax, and AFN 166,401 (Rs 1.98 lakhs) in fines. The branch expects that the additional tax and fine may be waived upon settling the tax liability.

Additionally, the company received a tax notice from India's GST authority last week. The authority demands a total tax payment of Rs 10.50 lakh with a Rs 1.50 lakh penalty and has proposed to levy interest as applicable.

Kalpataru Projects International Ltd is a leading EPC company specializing in power transmission and distribution, buildings and factories, water supply and irrigation, railways, oil and gas pipelines, urban mobility (flyovers and metro rail), highways, and airports.

(With inputs from agencies.)