Swiggy Faces Rs 158 Crore Tax Demand: Challenges Arise

Swiggy has received an assessment order for an additional tax demand of over Rs 158 crore for April 2021-March 2022. The demand stems from alleged contraventions under the Income-tax Act, including disallowed cancellation charges. Swiggy is contesting the order, asserting it won't impact its financials significantly.

Swiggy, a leading food and grocery delivery platform, revealed on Tuesday that it received an assessment order demanding an additional tax of more than Rs 158 crore for the fiscal year April 2021 to March 2022.

The Deputy Commissioner of Income-tax, Central Circle 1 (1), Bangalore, issued the order citing alleged contraventions such as disallowed cancellation charges paid to merchants and unreported interest income on tax refunds.

Swiggy, in its regulatory filing, stated it is prepared to contest the order, emphasizing that it does not foresee any significant adverse impact on its financial condition and operations.

(With inputs from agencies.)