Music Broadcast Ltd has received a show cause notice from UP state tax authorities demanding approximately Rs 11.58 crore for the 2022-23 fiscal year. The demand includes tax and penalties regarding alleged input tax credit mismatches and reporting discrepancies. The company denies the allegations and plans to contest the notice, stating it does not currently anticipate a material financial impact.
Music Broadcast Ltd Faces Rs 11.58 Crore Tax Notice
Total demand of Rs 11.58 crore including penalties; Company intends to contest the notice.
Reader Takeaway: Management disputes tax discrepancies and claims no immediate material financial impact on company operations.
What just happened
Music Broadcast Ltd received a show cause notice from the Office of the Deputy Commissioner, State Tax, Lucknow-I, Uttar Pradesh, on September 21, 2026. The notice covers the financial year 2022-23 and seeks a total payment of Rs 11,57,81,759. This includes Rs 10.52 crore in tax and a penalty of Rs 1.05 crore.
Why this matters
The notice alleges discrepancies between GSTR filings and tax liability, along with claims of ineligible Input Tax Credit (ITC) for certain inward supplies. Investors track such regulatory notices closely as they can signal potential future cash outflows or administrative friction with tax authorities.
Company Position
Music Broadcast Ltd has confirmed it disagrees with the department's allegations. The company is preparing a comprehensive response, backed by relevant financial records and reconciliations, to be submitted within the regulatory timeline. Management maintains that this demand will not have a material impact on the company's financial standing at this juncture.
What to track next
Shareholders should monitor subsequent updates from the company regarding its response to the tax authorities and any eventual adjudication or resolution of the matter.