Swiggy Faces ₹5.7 Million Tax Demand Over TDS Non-Compliance

Food delivery giant Swiggy Limited has been issued a tax demand notice by the Income Tax Department’s TDS Circle in Bangalore. The notice pertains to non-compliance with Tax Deducted at Source (TDS) regulations for the financial year 2017–18. The Deputy Commissioner of Income-tax has raised a demand of ₹53.47 lakh in taxes, along with ₹45.44 lakh in interest, bringing the total liability to ₹98.91 lakh.
The issue revolves around cancellation charges paid to merchants, which the department claims Swiggy failed to deduct tax at source under Section 194C of the Income Tax Act. Swiggy has stated that it has a strong case on merits and plans to appeal the order before the appropriate authority.
This development comes amidst heightened scrutiny of tax compliance in the gig economy, where classification of payments and tax obligations are often challenged. Swiggy has assured stakeholders that the order will not have a major adverse impact on its financial or operational performance.
Sources: Inc42, Taxscan, IndiaFilings.