BASF India fell 0.97% to Rs 1,231.35 after the company said it has received a tax demand notice of Rs 46.01 crore for the period 2015-2016 from Commercial Tax Department, Karnataka.
The company has received a demand notice from Commercial Tax Department, Karnataka for the period 2015-2016, aggregating to Rs 46.01 crore (including interest and penalty), by treating the stock transfers of the company's Mangalore plant as interstate sales to dealers.The company said it is in the process of filing its detailed reply/submission/appeals in response to the said notice. The company, based on the legal assessment, does not consider these stock transfers as interstate sales and is taking all the necessary legal steps to defend the matter.
BASF India had earlier informed about tax demand notices aggregating to Rs 620.93 crore (including interest and penalty) from Commercial Tax Department, Karnataka for the periods 2006-2007 to 2014-2015 by treating the stock transfers of the company's Mangalore plant as interstate sales to dealers. Later, Karnataka Appellate Tribunal granted stay on recovery of demand for the periods 2006-2007 to 2010-2011 and 2014-2015.
On the technical front, the stock's RSI (relative strength index) stood at 61.788. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.
The stock was trading in between its 50-day moving average (DMA) placed at Rs 1,098.10, with will act as a support in the near term and its 200-day moving average (DMA) placed at Rs 1,026.07, would act as a resistance in the upcoming trade.
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On a standalone basis, BASF India's net profit slumped 53.2% to Rs 40.37 crore on 40.4% jump in net sales to Rs 1,840.81 crore in Q4 March 2020 over Q4 March 2019.
BASF India is engaged in providing chemicals, plastics, performance products and crop protection products.
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