MTNL to get Rs1,380 crore a tax refund; stock up 3%

MTNL to get Rs1,380 crore a tax refund; stock up 3%
PTI
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First Published: Fri, Mar 19 2010. 06 03 PM IST
Updated: Fri, Mar 19 2010. 06 03 PM IST
New Delhi: State-run telco MTNL is set to get a tax refund of Rs1,380 crore for four assessment years, a positive cash-flow development for the PSU which is facing challenging times in terms of profitability and competition.
When contacted, company chairman and managing director Kuldip Singh said, “we are hoping to get some tax refund shortly.”
A senior company official said the refund comes after the Income Tax Appellate Tribunal (ITAT) upheld the company’s stance on tax dispute for the fiscal years 1998-99, 1999-2000, 2000-2001 and 2005-06. The PSU would get Rs756 crore along with Rs624 crore interest for the four assessment years totalling Rs1,380 crore.
The stock markets lapped up the news and the MTNL counter saw brisk action today. The stock hit a high of Rs77 during the day but closed down at 74.95, up 3.09% on a day when the index just rose 59 points.
The official said the company has received the orders but is yet to get the cheque but it will surely be accounted for in the fourth quarter results.
The official also said the tribunal has yet to dispose of another refund case involving Rs900 crore.
The Income Tax Appellate Tribunal had earlier gave its decision in favour of the company.
MTNL reported a net loss of Rs894.95 crore in the December compared with a net profit of Rs53.10 crore in the year-ago quarter. Its sales also declined to Rs902 crore in the same period.
The public sector telco operates in Delhi and Mumbai and added 86,706 GSM mobile users in February, against 45,067 in January.
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First Published: Fri, Mar 19 2010. 06 03 PM IST