The shares of Yes Bank dips to 3.44% after a service tax demand notice was issued to the banking institution.
The shares of Yes Bank dipped 3.44 per cent at Rs 24.55 a per share on the BSE in the intraday trade earlier this month. This came after Yes Bank stated that it has received a service tax demand order imposing a penalty of over Rs 6.42 crore.
The bank stated that this order was received from the Office of the Commissioner of GST & Central Excise, Maharashtra, on May 2, 2024. It confirmed a tax liability on a service tax issue, along with interest and a penalty of Rs 6,41,84,437.
Additionally, on May 1, 2024, the bank received two GST demand orders, with penalties totalling over Rs 6.87 lakh, from the GST departments of Manipur and Punjab. These penalties were for the reversal of input tax credit (ITC), along with interest. Yes Bank indicated that these demands also fall below the material threshold limit and expects no significant impact on its operations. Similar to the service tax order, the bank plans to appeal against these orders as well.
The bank’s reported profitability has been on an improving trajectory though remains burdened by bulky rural investment development fund (RIDF) investment (11 per cent of total assets), the brokerage firm ICICI Securities said in an result update.
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