GIC Dubai Branch Hit with Rs. 90.42 Cr VAT Demand by UAE Tax Authorities

GIC Dubai Branch Hit with Rs. 90.42 Cr VAT Demand by UAE Tax Authorities

The General Insurance Corporation of India has diclosed under the SEBI regulation that the Dubai Branch of the Corporation has received a VAT demand from the Federal Tax Authority (FTA) in relation to the discrepancy in VAT returns filed for the period from 1st January 2018 to 31st December 2020, inter alia a sum of Rs. 90.42 crore approximately (AED 12,868,602.71 Net due tax/(Tax to be returned according to tax audit results) and AED 25,966,807.36 total administrative penalties).

This has been determined to be payable by the Corporation.

The Corporation is currently reviewing the order in detail and intends to file a reconsideration request with the Authority within the statutory timeline.

As per Corporation there is no material impact on financials, operations or other activities due to this order.