Infrastructure company KEC International Ltd on Monday (December 2) announced that the VAT tribunal in Bangladesh has dismissed its appeal against a VAT demand order issued by the Customs, Excise & VAT Commissionerate in Dhaka.
“The VAT tribunal has by its order dated November 20, 2024, received on December 01, 2024, by the Bangladesh Branch of the Company dismissed the appeal against the VAT demand raised in the order dated April 29, 202,4 for the period July 2019 to June 2022,” KEC International said in a regulatory filing.
The order, dated April 29, 2024, relates to alleged discrepancies in financials and VAT returns for the period between July 2019 and June 2022. The company is actively reviewing the order and plans to challenge the decision in the High Court of Bangladesh.
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“This is with reference to our letter dated May 15, 2024, informing that the Customs, Excise & VAT Commissionerate, Dhaka (South) had issued a VAT demand order dated April 29, 2024, pertaining to the Bangladesh Branch of the Company due to alleged mismatch in financials and VAT return,” it said.
The appeal for the period from July 2017 to June 2019 is still pending before the tribunal. KEC International has indicated that it does not expect any material financial impact from the order. “The company is perusing the order and shall take appropriate legal steps to challenge the order in the High Court of Bangladesh,” it added.
KEC International reported a 53% year-on-year (YoY) jump in net profit at ₹85.4 crore for the second quarter that ended September 30, 2024. In the same quarter of the previous fiscal, KEC International posted a net profit of ₹55.8 crore.
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The company’s revenue from operations increased 13.7% to ₹5,113.3 crore against ₹4,499 crore in the year-ago period. At the operating level, EBITDA grew 16.7% YoY to ₹320.2 crore in the second quarter of this fiscal over ₹274.4 crore.
Shares of KEC International Ltd ended at ₹1,059.25, up by ₹4.35, or 0.41%, on the BSE.
(Edited by : Shoma Bhattacharjee)
