Foodtech Giant Receives Another Demand Notice

Share via:


SUMMARY

Zomato said that the Sales Tax Officer in Delhi passed an adjudication order, raising the GST demand of INR 1.89 Lakh, with interest of INR 1.59 Lakh and applicable penalty

The foodtech major said it will pay the applicable dues given the amount of the GST demand order and cost of litigation

Earlier this week, Zomato was slapped with GST tax demand and penalty orders of INR 4.59 Cr by Tamil Nadu and West Bengal authorities

Already reeling under a barrage of goods and services tax (GST) notices, foodtech major Zomato has now received a tax demand and penalty order amounting to nearly INR 3.5 Lakh.

In an exchange filing on August 31 (Saturday), Zomato said that the Sales Tax Officer of Ward 300 in Delhi passed an adjudication order, raising the GST demand of INR 1.89 Lakh with interest of INR 1.59 Lakh, along with applicable penalty (not quantified).

The Deepinder Goyal-led company said that it was served with the GST notice “disputing the eligibility of the input tax credit and interest penalty thereon.” 

The GST demand notice was issued for the period April 2019 to March 2020, the filing showed. 

This is the second time this week that Zomato has been slapped with a GST tax demand and penalty order. On Thursday, it received GST notices from Tamil Nadu and West Bengal authorities for about INR 4.59 Cr.

While Zomato then said it would file an appeal against the previous tax demand orders before relevant appellate authority, it does not plan to take such action against the latest order. 

“While the company believes that it has a strong case on merits, however, given the amount involved and the cost of litigation, the company shall pay the applicable amounts to the GST authorities,” it said regarding the latest demand notice.

It is pertinent to note that Zomato is mired in multiple such tax issues. Last month, the foodtech major received an INR 9.45 Cr GST notice from the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka.

Prior to that, in April, the food delivery giant was slapped with a tax demand and penalty order of INR 11.8 Cr from Gurugram GST authority.

The developments come at a time when shares of Zomato are on the rise on the back of its improving financial performance. Its net profit zoomed multifold to INR 253 Cr in Q1 FY25 from INR 2 Cr in the year-ago quarter.

Shares of Zomato have gained almost 102% year to date. On Friday, the stock ended 0.56% lower at INR 250.80 on the BSE.

 





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Popular

More Like this

Foodtech Giant Receives Another Demand Notice


SUMMARY

Zomato said that the Sales Tax Officer in Delhi passed an adjudication order, raising the GST demand of INR 1.89 Lakh, with interest of INR 1.59 Lakh and applicable penalty

The foodtech major said it will pay the applicable dues given the amount of the GST demand order and cost of litigation

Earlier this week, Zomato was slapped with GST tax demand and penalty orders of INR 4.59 Cr by Tamil Nadu and West Bengal authorities

Already reeling under a barrage of goods and services tax (GST) notices, foodtech major Zomato has now received a tax demand and penalty order amounting to nearly INR 3.5 Lakh.

In an exchange filing on August 31 (Saturday), Zomato said that the Sales Tax Officer of Ward 300 in Delhi passed an adjudication order, raising the GST demand of INR 1.89 Lakh with interest of INR 1.59 Lakh, along with applicable penalty (not quantified).

The Deepinder Goyal-led company said that it was served with the GST notice “disputing the eligibility of the input tax credit and interest penalty thereon.” 

The GST demand notice was issued for the period April 2019 to March 2020, the filing showed. 

This is the second time this week that Zomato has been slapped with a GST tax demand and penalty order. On Thursday, it received GST notices from Tamil Nadu and West Bengal authorities for about INR 4.59 Cr.

While Zomato then said it would file an appeal against the previous tax demand orders before relevant appellate authority, it does not plan to take such action against the latest order. 

“While the company believes that it has a strong case on merits, however, given the amount involved and the cost of litigation, the company shall pay the applicable amounts to the GST authorities,” it said regarding the latest demand notice.

It is pertinent to note that Zomato is mired in multiple such tax issues. Last month, the foodtech major received an INR 9.45 Cr GST notice from the Assistant Commissioner of Commercial Taxes (Audit) in Karnataka.

Prior to that, in April, the food delivery giant was slapped with a tax demand and penalty order of INR 11.8 Cr from Gurugram GST authority.

The developments come at a time when shares of Zomato are on the rise on the back of its improving financial performance. Its net profit zoomed multifold to INR 253 Cr in Q1 FY25 from INR 2 Cr in the year-ago quarter.

Shares of Zomato have gained almost 102% year to date. On Friday, the stock ended 0.56% lower at INR 250.80 on the BSE.

 





Source link

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

Website Upgradation is going on for any glitch kindly connect at office@startupnews.fyi

More like this

One UI 7: Samsung to end support for DeX...

Samsung’s upcoming Android 15-based user interface, One UI...

It’s the Senate’s last chance to pass the PRESS...

Folks in America: Your senators have just a...

Startup Policy Forum Looks To Fuel India’s New Economy 

SUMMARY Founded by Shweta Rajpal Kohli, a public policy...

Popular

Upcoming Events

Startup Information that matters. Get in your inbox Daily!