Max Financial Services on Wednesday (13 May) said it settled its long-pending tax dispute under the Vivad Se Vishwas tax dispute settlement scheme.
Max Financial Services (MFSL) has settled a long pending income tax case under the dispute resolution scheme 'Direct Tax Vivad Se Vishwas, 2020,' recently launched by the Indian Government. MFSL has paid Rs 123.78 crore for settling the litigation involving capital gains from the stake sale of its erstwhile telecom joint venture Hutchison Max Telecom.The settlement was finalized earlier this month and due taxes have been remitted. The payment also clears a tax dues contingent liability that has been reported on the company's books for the past two decades.
The Vivad se Vishwas scheme was announced during the Union Budget speech on 1 February 2020. Under this scheme, taxpayers whose tax demands are locked in dispute in multiple forums can pay due taxes by 30 June 2020 and get a complete waiver of interest and penalty.
In April, Axis Bank and Max Financial Services (MFS) announced the signing definitive agreements to become joint venture partners in Max Life Insurance Company (Max Life). Axis Bank will hold 30% stake in Max Life post transaction closure. The development will result in a mutually beneficial and enduring relationship between Axis Bank and Max Life and bring the stability of a long term partnership to India's fourth largest private life insurance franchise. The joint venture arrangement will significantly improve Max Life's competitive position vis a visits competitors, including the other large bank owned private life insurers.
Max Financial Services' consolidated net profit surged 168.3% to Rs 105.22 crore on a 19.2% rise in total income to Rs 5,365.74 crore in Q3 December 2019 over Q3 December 2018.
Max Financial Services operates as a life insurance company. The company, through its subsidiaries, provides life insurance and health insurance products, as well as healthcare services.
Shares of Max Financial Services rose 0.79% to end at Rs 450.75 on BSE. The stock traded in the range of Rs 443.55 to Rs 461.05.
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