Swiggy Receives ₹53.47 Lakh Income Tax Demand Notice Over TDS Issues
Swiggy has received a nearly Rs. 99 lakh income tax demand notice over TDS non-compliance
Food delivery giant Swiggy Limited has received a tax demand notice from the Income Tax Department’s TDS Circle in Bangalore for the financial year 2017–18 citing non-deduction of tax under Section 194C of the Income Tax Act. In a regulatory filing on Tuesday, Swiggy disclosed that the Deputy Commissioner of Income-tax has raised a demand of Rs. 53.47 lakh in taxes, along with Rs....
Food delivery giant Swiggy Limited has received a tax demand notice from the Income Tax Department’s TDS Circle in Bangalore for the financial year 2017–18 citing non-deduction of tax under Section 194C of the Income Tax Act.
In a regulatory filing on Tuesday, Swiggy disclosed that the Deputy Commissioner of Income-tax has raised a demand of Rs. 53.47 lakh in taxes, along with Rs. 45.44 lakh in interest, totaling nearly Rs. 99 lakh. The issue pertains to cancellation charges paid to merchants, on which the department claims Swiggy failed to deduct tax at source.
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Swiggy, in its statement, stated that it has a “strong case on merits” and plans to appeal the order before the appropriate authority. The company also clarified that the order will have no major adverse impact on its financial or operational performance.
The notice comes amid heightened scrutiny of tax compliance in the gig economy, where classification of payments and tax obligations are often challenged.
Amidst Antitrust Investigations
In November 2024, the Competition Commission of India (CCI) investigated and found that Swiggy and Zomato breached competition laws by favoring select restaurants through exclusivity arrangements, which hindered market competitiveness. The CCI's findings are pending final decisions, which could include penalties or directives to alter business practices.
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Recent Swiggy Activity
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Swiggy Instamart recently launched rapid smartphone deliveries in India. The service is now live in 10 major cities, including Delhi, Mumbai, Bengaluru, Chennai, Hyderabad, Kolkata, Pune, Gurgaon, Noida, and Faridabad.
The offering features smartphones from top brands like Apple, Samsung, OnePlus, Xiaomi, Oppo, Vivo, Realme, and Motorola, with popular models such as the iPhone 16e, Samsung M35, OnePlus Nord CE, and Redmi 14C available for 10-minute doorstep delivery.
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