Mumbai, January 30, 2025 – Thomas Cook (India) Limited (BSE: 500413, NSE: THOMASCOOK) has received an order from the State Tax Inspector, Ghatak 8, Range-2, Division-1, Gujarat, confirming a demand related to Input Tax Credit (ITC) disallowance. The total demand amounts to INR 15,68,990, comprising principal tax, interest, and penalties.
Regulatory Action and Financial Impact
The demand, as per the order dated January 30, 2025, includes:- ITC Disallowance: INR 8,31,033
- Interest: INR 6,47,932
- Penalty: INR 89,025
Despite this regulatory action, Thomas Cook (India) stated that the financial and operational impact on the company remains immaterial. The company believes it has a strong case and is taking necessary steps to appeal against the order before the appropriate authority.
Next Steps and Market Implications
Thomas Cook (India) Ltd. has assured investors that it will challenge the ruling and has good grounds for appeal. The company continues to comply with SEBI Listing Regulations and has disclosed the matter on its official website.This development is unlikely to have a material impact on the company's financials, given its strong cash reserves and robust operational framework. Investors will be watching closely for any updates regarding the appeal process and potential financial implications.