Schneider Electric Infrastructure Ltd has received tax demand orders worth ₹18.6 million and ₹4.39 million. The company plans to contest the demands, noting they are not material to its financials. Analysts say resolution will be important for investor confidence as regulatory disputes remain common in the infrastructure sector.
Schneider Electric Infrastructure Ltd has disclosed that it has received two tax demand orders totaling ₹22.99 million (₹18.6 million and ₹4.39 million) from the Government authorities. The company clarified that while these demands are under dispute, they are not expected to materially impact its financials or operations.
Key Highlights
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Tax Orders Issued: Schneider Electric Infrastructure confirmed receipt of two separate tax demand notices, amounting to nearly ₹23 million.
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Nature of Demands: The orders relate to indirect tax liabilities, including interest and penalties, as per regulatory filings.
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Company Response: Schneider Electric stated that it is evaluating legal options and may contest the demands through appropriate appellate forums.
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Financial Impact: The company emphasized that the demands are not material compared to its overall financial position, ensuring business continuity.
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Investor Sentiment: Analysts note that while such disputes are common in the infrastructure and energy sector, clarity on resolution will be key to maintaining investor confidence.
This development highlights the ongoing regulatory challenges faced by infrastructure firms, even as Schneider Electric continues to focus on its core business in power distribution and energy solutions.
Sources: CNBCTV18, StockInsights, Business Standard