Authored by : ET Now Digital Updated Apr 20, 2024 | 11:16 PM IST Zomato hit with Rs 11.82 crore tax demand (iStock)(Authored by Samta Barnali Achintya)The food delivery giant Zomato , has received a service tax demand and penalty order by the Additional Commissioner, Central Goods and Services Tax.
The Gurgaon-based company Zomato has stated that it has received a service tax demand and penalty order totaling Rs 11.82 crore, as cited in an ET report.
Earlier this month, the company received a service tax demand and penalty order totaling more than Rs 184 crore, relating to non-payment of service tax from October 2014 to June 2017.
Similarly, on April 1, the Karnataka commercial taxes authority issued a tax demand notice of Rs 23 crore for availing excess input tax credit under the GST rules.
Zomato share price target 2024 Meanwhile, Kotak Institutional Equities has a BUY rating on Zomato.
Authored by : ET Now Digital Updated Apr 20, 2024 | 11:16 PM IST Zomato hit with Rs 11.82 crore tax demand (iStock)
(Authored by Samta Barnali Achintya)
The food delivery giant Zomato , has received a service tax demand and penalty order by the Additional Commissioner, Central Goods and Services Tax.
The Gurgaon-based company Zomato has stated that it has received a service tax demand and penalty order totaling Rs 11.82 crore, as cited in an ET report.
The demand order pertains to goods and services tax ( GST ) on export services from July 2017 to March 2021, the Gurgaon-based company said, adding that it would file an appeal against the order.
The company stated in a regulatory filing on Friday that the tax was assessed based on export services it provided to its subsidiaries located outside India.
According to an ET report, the company stated, “We believe that we have a strong case on merits and will be filing an appeal against the order before the appropriate authority.”
However, the company has said that it expected no financial impact from the development.
Earlier this month, the company received a service tax demand and penalty order totaling more than Rs 184 crore, relating to non-payment of service tax from October 2014 to June 2017.
The tax was determined based on certain sales made by the company’s foreign subsidiaries and branches to customers located outside India.
Similarly, on April 1, the Karnataka commercial taxes authority issued a tax demand notice of Rs 23 crore for availing excess input tax credit under the GST rules.
Apart from this, Zomato, previously viewing its international operations as a pivotal growth avenue, has witnessed only a negligible portion of its earnings derived from overseas business.
The company has closed nearly all of its international subsidiaries, spanning locations such as Singapore, the UK, the US, and South Africa.
Additionally, Zomato has also initiated the liquidation process for its Vietnam business.
Zomato share price target 2024 Meanwhile, Kotak Institutional Equities has a BUY rating on Zomato. In its report dated April 18, 2024, when Zomato's share price was Rs 186, Kotak Institutional Equities had a BUY rating on the Zomato share with a target price of Rs 210, an upside of 13 per cent. On Friday, April 19, Zomato shares closed at Rs 188.50 apiece.
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