Carraro India Faces ₹3.5 Mn Tax Demand Over E-Way Bill Discrepancies—Show Cause Notice Issued

Carraro India Ltd. has received a Show Cause Notice-cum-Tax Demand from the Income Tax Department, alleging irregularities related to multiple e-way bills. The notice, dated February 24, 2025, follows an earlier notice issued on February 13, 2025, and pertains to ₹3.5 million (₹35 lakh) in tax liabilities. The department claims that Carraro generated duplicate or inconsistent e-way bills, potentially violating GST norms.

 

The company has acknowledged receipt of the notice and is currently reviewing the allegations. It plans to respond within the stipulated time frame, and may pursue legal remedies if necessary. Notably, the revised notice reflects a downward revision in the tax demand compared to the initial assessment, suggesting partial acceptance of Carraro’s earlier clarifications.

 

This development comes amid Carraro’s ongoing efforts to streamline compliance and enhance transparency, as reflected in its recent investor communications and audit disclosures.

 

Key Highlights:

Tax demand: ₹3.5 million

 

Issue: Alleged duplication in e-way bills

 

Notice dates: Feb 13 & Feb 24, 2025

 

Company stance: Reviewing; may contest

 

Regulatory context: GST compliance under scrutiny

 

Source: Carraro India Ltd. – Economic Times Company Updates