The shares of Bajaj Auto, one of the major players in the automobile market, slipped on Tuesday, March 4. This comes at the back of a tax demand that was served to the company.
Tax Demand For Bajaj Auto
The Maharashtra state GST slapped the Pune-based two-wheeler giant with a Rs 138 crore tax demand.
This tax demand was issued over ‘differential tax liability’ on auto parts classification.
Here the differential tax liability between the specific HSN classification adopted by Bajaj Auto with a GST rate of 18 per cent against general HSN classification with GST rate of 28 per cent for auto parts manufactured by the company.
The tax department said that the entire spare parts, being a customised product used only in the manufacturing of vehicles, would get classified as auto parts at a GST rate of 28 per cent, which is the highest tax slab in the GST regime.
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The authorities have accused the company of disregarding the principle of general rules of interpretation.
The tax department said that the entire spare parts, being a customised product used only in the manufacturing of vehicles, would get classified as auto parts at a GST rate of 28 per cent, which is the highest tax slab in the GST regime.
This has resulted in the company shares declining on Tuesday, as the markets in general is experiencing a slowdown.
Bajaj Auto Shares In Red
The company shares started the day on a negative note, dropping to Rs 7,652.10 per share against the previous day’s closing of Rs 7,7149.80.
After making some recovery, inching to Rs 7,680.00 per share, the company’s stocks fortunes slipped even further.
The company shares have experienced a significant wave of decline since then.
At the time of writing, the said decline increased from 2 per cent to 3.07 per cent or Rs 236.80 per share. This took the overall value of each Bajaj Auto stock to Rs 7,478.00 per piece.
In addition, the company shares also hit their 52 week low of Rs 7,476.00 per share in the day’s trade.
Bajaj Auto’s 52 week-high stands at Rs 12,774.00 per piece.
