NIIT Learning Systems Ltd. (NSE: NIITMTS, BSE: 543952) has informed stock exchanges that its wholly owned subsidiary, NIIT (USA) Inc., has received an excise tax demand of USD 600,303.50 from the Washington State Department of Revenue following the conclusion of a tax audit covering the period from January 1, 2022, to December 31, 2025.
According to the company’s regulatory filing, the audit report and notice of balance due, both dated July 30, 2026, were received on July 31, 2026.
Tax Demand Includes Penalty and Interest
The total demand of USD 600,303.50 comprises:
- Tax: USD 435,957.60
- Penalty: USD 111,994.73
- Interest: USD 52,351.17
The assessment relates to the interpretation and application of Washington State Business & Occupation (B&O) tax and Retail Sales Tax provisions.
No Allegation of Legal Violation
NIIT Learning Systems clarified that no violation or contravention of law has been alleged by the Washington State Department of Revenue.
The company stated that the tax demand arose from differences in the interpretation of tax provisions, including revenue classification, deductions claimed and the consequential levy of penalties and interest.
Company Says Financial Impact Not Material
The company said NIIT (USA) had already created a provision in its books during the previous financial year based on the advice of tax consultants.
As a result, NIIT Learning Systems expects no material financial impact from the assessment. Any accounting impact, if required, will be recognized in accordance with applicable accounting standards.
No Impact on Business Operations
NIIT Learning Systems emphasized that the tax demand will not affect the operations or business activities of either NIIT (USA) Inc. or the parent company.
The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, following receipt of the audit report from the Washington State Department of Revenue.
The company has not indicated any disruption to its ongoing business or strategic operations as a result of the tax assessment.
