Rane Holdings subsidiary faces tax scrutiny over employee secondment

Rane Steering Systems Private Limited (RSSL), a wholly owned subsidiary of Rane Holdings Limited, has received a show cause notice from the Dy. Excise & Taxation Commissioner (State Tax), Haryana. The notice, dated September 29, 2025, pertains to alleged non-payment of tax on secondment of employees, issues with credit notes to customers, and excess input tax credit availed, covering April 2021 to March 2022.

The show cause notice indicates an expected financial implication of Rs 8.87 Cr, which includes tax, interest, and penalty. Specifically, a penalty of Rs 0.50 Cr is mentioned. The core issue revolves around the treatment of employee secondment as an import of service liable for reverse charge tax.

RSSL is currently preparing its reply to the show cause notice, intending to furnish all relevant information to the authority within the stipulated due date. Rane Holdings Limited disclosed this information in compliance with Regulation 30(13) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.