Tera Software Limited — Important, 27-02-2025: General Updates

The High Court of Andhra Pradesh has disposed of Writ Petition No. 24537/2023, setting aside a prior assessment order involving a substantial tax demand of Rs. 30.39 Cr. related to the financial year 2020-21. This order allows for a fresh assessment by the authorities, which must follow due process. Additionally, Tera Software has received a demand order (DRC-07 No. 2D1902250413198) from the Assistant Commissioner of State Tax in Kolkata, amounting to Rs. 33.42 Cr., stemming from discrepancies in ITC claims and output tax declarations from July 2017 to August 2019. Despite the tax demands, the company asserts that there is no material impact on its operational or financial activities, noting actions are being taken to legally contest the attachment of assets. Stakeholders should monitor developments closely, as these issues, particularly the large tax demand, could pose risks to future cash flows and operations.