What to watch: Tax notice may dampen sentiment in BASF India

BASF India has received demand notices from the Commercial Tax Department, Karnataka, for ₹324.49 crore (incl. interest and penalty) for 2006-2010, 2010-11 (2 months) and 2014-15; the depatment has treated the stock transfers of its Mangalore plant as interstate sales to dealers. However, the demand for 2010-11 (2 months) and 2014-15 aggregating ₹98.81 crore has been stalled by the Karnataka Appellate Tribunal. BASF has filed an appeal in the HIgh Court for 2006-2010 demand, too.