Monday, 7 April 2025
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Swiggy’s ₹165 Cr Tax Challenge: Appeal in the Works

  • Swiggy faces two tax demands totaling over ₹165 crore for FY 2021–22.
  • Orders involve professional tax violations and disallowed expenses under the Income Tax Act.
  • The company asserts no major financial or operational impact from these demands.

Swiggy has received a ₹7.59 crore tax demand from the Professional Tax Officer in Pune. This is due to failure to deduct professional tax from employees’ salaries under Maharashtra law.

Separately, a ₹158.25 crore tax assessment by the Income Tax Department in Bangalore accuses Swiggy of improperly declaring interest income. They also claim Swiggy wrongly declared cancellation charges paid to merchants as expenses.

Swiggy’s ₹165 Cr Tax Challenge: Here’s What’s at Stake

The ₹7.59 crore demand relates specifically to Swiggy’s compliance with the Maharashtra Profession Tax Act. This act mandates tax deductions from employee salaries. Authorities allege that Swiggy did not comply with this provision during FY 2021–22.

The ₹158 crore assessment, on the other hand, stems from Swiggy’s income tax filings. The department disallowed cancellation charges as deductible expenses and flagged the company’s treatment of interest earned on income tax refunds.

Swiggy stated in its regulatory filing that it has a solid defense for both issues. The company is taking steps through formal review and appeal processes. It believes these tax claims will not hinder its current business trajectory.

The timing of these assessments is significant, coming as the company gears up for its IPO. The handling of these tax issues could influence investor sentiment and public perception.

While Swiggy prepares to contest the tax demands, its confident stance reflects the growing legal and financial preparedness of India’s digital economy leaders. They are facing increasing regulatory scrutiny.

“In the middle of every difficulty lies opportunity.” — Albert Einstein

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