Swiggy receives tax notice for alleged rule violation

Swiggy receives tax notice: Swiggy which is a popular online food delivery company has received a tax demand of ₹7.59 crore from the Maharashtra government. This notice is related to the alleged violation of professional tax deduction rules. The company shared this information in a stock exchange filing on April 5, 2025.

According to the official notice, the tax demand is for the financial year from April 1, 2021, to March 31, 2022. The Professional Tax Officer in Pune claimed that Swiggy did not follow the rules regarding the deduction of professional tax from employee salaries. This falls under the Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975.

Swiggy has said that it disagrees with the tax demand and plans to challenge the order through legal means. The company believes it has strong arguments to support its case and is taking steps to protect its interests. It also added that this issue will not have a major impact on its financial position.

Meanwhile, Swiggy’s share price dropped by 2.32% after the news, closing at ₹337.20 on Friday, compared to ₹345.20 the previous day. The company was listed on the stock exchange in November 2024. Since then, its stock has declined by over 21%. However, in the last five trading sessions, the stock gained around 1.77%.

Swiggy’s market value stood at ₹77,100.14 crore at the end of Friday’s trading session. Despite the current situation, the company remains confident about handling the issue legally.

Swiggy receives tax notice

Swiggy believes that it has a strong legal position in this matter and plans to challenge the tax demand through the appropriate legal channels. Meanwhile, the company continues its daily operations and assures stakeholders that this legal challenge will not affect its services or long term business goals. As Swiggy expands its quick commerce and food delivery operations across India, it remains focused on customer satisfaction and regulatory compliance. Investors and market watchers are keeping an eye on the developments, though Swiggy’s current stance reflects optimism and a proactive approach in resolving the matter.

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