Kalpataru Projects International Receives Eswatini Revenue Service Tax Assessment Demanding ~₹99 Lakhs for FY2022-23 to FY2024-25
Kalpataru Projects Receives Eswatini Tax Assessment Order
Kalpataru Projects International Limited received a tax assessment order from the Eswatini Revenue Service on June 8, 2026, arising from the wrongful addition of offshore supply revenue and the disallowance of certain expenses incurred by the company's branch in the Kingdom of Eswatini.
Assessment Details
The Eswatini Revenue Service (ERS) is demanding a fine of SZL 1,717,787 (approximately INR 99.12 lakhs) for the financial years 2022-23 to 2024-25. The Eswatini Revenue Service passed the order based on alleged violations related to the tax assessment of the branch office, and the authority disputed the revenue recognition and expense claims for the specified period.
Company Response
Kalpataru Projects International Limited has clarified that the branch office situated in the Kingdom of Eswatini will contest the order, with objections to be filed as per the regulatory timelines applicable in the jurisdiction. The management affirmed that the penalty levied does not have a material financial impact on the listed entity.
About Kalpataru Projects International
Kalpataru Projects International Limited (KPIL) is one of India's largest listed, diversified engineering and construction companies engaged in Power Transmission & Distribution, Buildings & Factories, Water Supply & Irrigation, Railways, Oil & Gas Pipelines, Urban Mobility, Highways and Airports. Since inception in 1981, the company has been creating sustainable value through cutting-edge Engineering, Procurement, and Construction (EPC) solutions, establishing itself as one of the largest global players with a presence in over 75 countries. KPIL currently executes projects in over 25 countries and has a footprint in more than 75 countries across Asia, Africa, the Middle East, the Americas, and Europe.
For the year ended March 31, 2026, the company reported a consolidated revenue of ₹27,143 crore, a net profit of ₹1,031 crore, and an order book of ₹65,457 crore.