Sun Pharmaceutical Industries Limited has recently received regulatory orders pertaining to tax compliance issues. According to a notification under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company and its subsidiary, Sun Pharma Distributors Limited, have been subject to orders from statutory authorities regarding alleged violations of tax regulations.

Details of Regulatory Orders

Date of Receipt: August 30, 2024

Sun Pharma Distributors Limited:

Authority Involved: Office of the Joint Commissioner, Business Audit, Circle-1, Zone IV, Jaipur.

Nature of Action: An order was issued under sections 73, 50, and 125 of the RGST/CGST Act, 2017. This order imposes an interest amounting to Rs. 28,80,952 and a penalty of Rs. 3,45,344.

Violation Details: The order relates to excess availment and utilization of Input Tax Credit (ITC).

Sun Pharmaceutical Industries Limited:

Authority Involved: Assistant Commissioner of State Tax, S.A.S Nagar Mohali, Punjab.

Nature of Action: An order under section 73 of the PGST/CGST Act, 2017 for the fiscal year 2019-20, which imposes an interest of Rs. 6,34,028 and a penalty of Rs. 72,049.

Violation Details: The order pertains to the disallowance of ITC.

Impact on Company Operations

According to the company's disclosure, these regulatory actions are not expected to have a material impact on Sun Pharmaceutical's financial, operational, or other activities. Both the penalty and interest imposed are part of regulatory compliance measures and are being addressed accordingly by the company.

Company’s Response

Sun Pharmaceutical Industries Limited has indicated that it will take the necessary actions in response to these orders. The company, through its Company Secretary and Compliance Officer, Anoop Deshpande, has committed to managing these regulatory challenges in line with statutory requirements.

In summary, while these orders highlight important compliance issues, they do not pose a significant threat to the overall financial health or operational stability of Sun Pharmaceutical. The company remains focused on adhering to regulatory standards and ensuring continued operational efficiency.

For further information, stakeholders and interested parties can refer to the company's official communication channels or contact their corporate office.

Also Read : UltraTech Cement to Contest GST Order from Chhattisgarh State Tax Authority

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