Kalpataru Projects has received a tax notice from the government of Afghanistan

29 Aug 2024

The Afghanistan government has issued a tax notice to Kalpataru Projects International Ltd. for not submitting certain declarations for the financial years 2020-21 and 2021-22.

Through its consultant, the branch office of the company received tax invoices from the Ministry of Finance, Afghanistan Revenue Department, and demanding payment of the tax liability, additional tax, and penalty.

The notice, received on August 26, specifies a tax liability of AFN 8,774,153 (approximately Rs 104.59 lakh), an additional tax of AFN 12,150 (Rs 0.14 lakh), and a fine of AFN 166,401 (Rs 1.98 lakh). Kalpataru Projects International anticipates that the Ministry of Finance may waive the additional tax and fines once the primary tax liability is settled.

Besides the notice from Afghanistan, the company has also received a tax demand from the GST authority in India. The Indian authority has demanded a tax payment of Rs 10.50 lakh in addition to a penalty of Rs 1.50 lakh and the applicable interest.