Akzo Nobel India gets demand of over Rs 46 crore from state tax authorities

Paints and coatings maker Akzo Nobel India on Wednesday said it has received show cause notices from tax authorities of Karnataka and Uttar Pradesh, demanding a total sum of over Rs 46 crore over disallowance of input tax credit and tax dues. The company received a show cause notice from the Karnataka GST Department on November 26, 2024, mentioning disallowance of ITC (input tax credit) and tax due for the period from April 2020 to March 2021, aggregating to Rs 44.5 crore, comprising tax of Rs 24 crore; interest of Rs 15.75 crore and penalty of Rs. 4.8 crore, Akzo Nobel India said in a regulatory filing.

In a separate filing, the company said it also received a show cause notice from the Uttar Pradesh GST Department on November 25, 2024, mentioning disallowance of ITC and tax due for the period from April 2020 to March 2021, aggregating to Rs 1.92 crore, comprising tax of Rs 1.75 crore, and a penalty of Rs 17.47 lakh.

The company said the show cause notices are "open for further submissions before the relevant authorities", and it is in the process of responding to that within the stipulated time.