Uzbek court declares invalid a ₹14.79 crore tax demand on overseas subsidiary
A court in Uzbekistan has declared invalid a tax demand of about ₹14.79 crore raised on Nephrocare Health Services Central Asia LLC, a wholly-owned overseas subsidiary.
By ScoutQuest · · 2 min read
- Aggregate tax demand declared invalid
- approximately ₹14.79 crore
- Net additional tax
- approximately ₹11.50 crore
- Penalty
- approximately ₹3.29 crore
What the company told the exchanges
Nephrocare Health Services Ltd said its overseas wholly-owned subsidiary in Uzbekistan, Nephrocare Health Services Central Asia LLC (NCA), has obtained a court ruling in its favour in a tax dispute.
The order
The Tashkent Inter-District Administrative Court, by its decision dated October 27, 2026, allowed NCA's application and declared invalid the Tashkent City Tax Department's Decision No. 721.1 dated August 24, 2026. NCA received the decision on November 2, 2026.
The money involved
- Aggregate demand: approximately ₹14.79 crore
- Net additional tax: approximately ₹11.50 crore
- Penalty: approximately ₹3.29 crore
- In local currency, net additional tax of UZS 14,204,055,360 and penalty of UZS 4,064,086,532, aggregating UZS 18,268,141,892
- Late-payment interest is excluded from these figures
The demand followed a tax audit for the period January 1, 2023 to December 31, 2025.
Why the court ruled this way
The court found procedural irregularities, including
- absence of prior notice of the audit
- extension of the audit period after it had expired
- review of the audit materials without NCA's participation
It also held that the underlying tax calculations required verification.
What happens next
- The Tax Department has been directed to reconsider the audit materials, taking into account the documents submitted by NCA and the court's legal position
- As noted in the decision, that reconsideration cannot worsen NCA's position compared with the invalidated decision
- The reconsideration is to be completed within 30 days of the court decision entering into force
- The decision is appealable before the Tashkent City Administrative Court within one month of its issuance
What the company says about financial impact
The assessment and penalty aggregating approximately ₹14.79 crore have been declared invalid and are no longer operative. Any financial implication will depend on the outcome of the Tax Department's reconsideration and of any further proceedings. No claim has been made by NCA.
What to watch
The result of the Tax Department's reconsideration and whether an appeal is shared. The company said it will continue to monitor the matter and disclose any further material developments.
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More numbers
- Aggregate demand raised on NCA₹14.79 crore
- Net additional tax in the demand₹11.50 crore
- Penalty in the demand₹3.29 crore
- Net additional tax in local currency (UZS)UZS 14,204,055,360
- Penalty in local currency (UZS)UZS 4,064,086,532
- Aggregate demand in local currency (UZS)UZS 18,268,141,892
- Time for Tax Department reconsideration30 days
- Window to appeal the court decisionone month
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