Leading residential air conditioner maker, Voltas Ltd, on Wednesday (July 2) said it has received a show cause notice from the office of the Principal Commissioner, Central GST Commissionerate, Dehradun, under the Central Goods and Services Tax Act, 2017, read with the Uttarakhand Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017.
The notice pertains to the alleged short payment of GST for the financial years 2018-19 to 2020-21 by Universal Comfort Products Limited, which merged with Voltas during FY2020-21. The notice wants Voltas to explain why the tax amount of ₹265.25 crore should not be demanded along with interest and penalty.
“The show cause notice seeks explanation as to why the tax amount of Rs 265.25 crores should not be demanded along with interest and penalty. The company is evaluating this matter and will submit its reply within the prescribed time period,” according to a stock exchange filing.
Voltas stated that it is evaluating the matter and will submit its reply within the prescribed time period. The company received the notice on July 1.
Mixed fourth quarter
Voltas reported a strong year-on-year performance for the March quarter, with net profit surging 108% to ₹241 crore, compared to ₹116 crore in the same period last year. However, the results fell short of CNBC-TV18’s poll estimates on all major parameters.
Revenue rose 13.4% year-on-year to ₹4,768 crore from ₹4,203 crore, but was lower than the expected ₹4,897 crore. Similarly, EBITDA grew a sharp 74.6% to ₹332.8 crore, up from ₹191 crore a year ago, yet below the Street estimate of ₹354 crore.
Shares of Voltas Ltd ended at ₹1,332.40, up by ₹6.35, or 0.48%, on the BSE.
