KEC International plans to challenge Bangladesh VAT tribunal’s decision

3 Dec 2024 , 08:02 AM

KEC International Ltd said that the VAT tribunal in Bangladesh had dismissed its appeal against a VAT demand order issued by the Customs, Excise, and VAT Commissionerate in Dhaka.

The VAT tribunal dismissed the appeal against the VAT demand raised in the order dated April 29, 2024,4 for the period July 2019 to June 2022, according to a regulatory filing by KEC International. The order was received on December 1, 2024, by the Bangladesh Branch of the Company.

The decision, dated April 29, 2024, addresses alleged irregularities in financials and VAT reports for the period July 2019–June 2022. The corporation is currently evaluating the order and intends to appeal it in the High Court of Bangladesh.

This is in connection to our letter of May 15, 2024, stating that the Customs, Excise, and VAT Commissionerate, Dhaka (South) has issued a VAT demand order dated April 29, 2024, referring to the Bangladesh Branch of the Company due to an alleged mismatch in financials and VAT return,” it stated.

The appeal for July 2017 to June 2019 is still pending with the tribunal. According to KEC International, the ruling is unlikely to have a significant financial impact. 

KEC International reported a 53% YoY increase in net profit to ₹85.4 Crore for the second quarter ended September 30, 2024. In the previous fiscal quarter, KEC International made a net profit of ₹55.8 Crore.

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