Swiggy receives ₹7.59 crore tax notice fora alleged profession tax violation

The tax notice has been issued for allegedly violating Maharashtra's Profession Tax Act by failing to deduct tax from employees' salaries.

Food and grocery delivery platform Swiggy has received an an assessment order for the April 2021 to March 2022 period, amounting to ₹7.59 crore from the Office of the Profession Tax Officer, Pune.

Swiggy gig workers talk to each other during a promotional event in Mumbai, India, October 14, 2024. (REUTERS FILE)

Violation of provisions pertaining to deduction of Profession Tax from the employees' salary under the Maharashtra State Tax on Professions, Trades, Callings & Employments Act, 1975, has been alleged against the company, it said in a regulatory filing.

"The Company believes that it has strong arguments against the Order and is taking necessary steps to protect its interest through review/appeal," Swiggy stated in the filing on Saturday.

The company believes that the order has no major adverse impact on its financials and operations.