MSTC Limited, a public sector company owned by the Government of India, has received a notice from the Income Tax Department demanding Rs. 178.40 crore. This demand is due to alleged problems with Tax Deducted at Source (TDS) for the financial year 2024–25.
According to the company’s disclosure to stock exchanges, the total amount includes Rs. 27.85 crore as interest. The notice was issued under sections 201(1) and 201(1A) of the Income Tax Act, 1961, which apply when a company does not deduct or deposit TDS properly.
Your go-to resource for understanding TDS & TCS amendments in the 2025 Finance Act: Click Here
MSTC has said the demand will not have any major impact on its financial position or daily operations. The company plans to challenge the notice by filing an appeal before the appropriate tax authority.
Read More: Geometry Compass Box Classified as Mixed Supply, Attracts 18% GST: AAR
MSTC Limited is a central public sector enterprise under the Ministry of Steel. It was established in 1964 and is headquartered in Kolkata. The company mainly operates in the areas of e-commerce and trading of bulk raw materials. It plays a key role in the recycling and auctioning of scrap and surplus materials through its online platforms.
MSTC is also known for its e-auction services, helping government and private organizations sell or procure goods in a transparent, digital manner. Over the years, MSTC has expanded its digital marketplace services and continues to be a key player in promoting transparent e-commerce solutions for public sector needs.
Get the complete breakdown of TDS & TCS under The Finance Act, 2025: Click Here
As of April 17, 2025, 12:04 PM IST, MSTC Limited’s share was trading at Rs. 530.00, up Rs. 2.90 (0.55%) from the previous close of Rs. 527.10.
The stock showed positive momentum despite the tax notice announcement.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
