Zomato Faces Rs 184 Crore Service Tax Penalty


Mumbai  : Online food delivery platform Zomato said it has received an order demanding service tax and penalty of over Rs 184 crore and it will file an appeal against it before the appropriate authority.

In a late night regulatory filing, the company said in a statement that non-payment of service tax for the period October 2014 to June 2017 determined on the basis of certain sales made by the company’s overseas subsidiaries and branches to its customers located outside India Demand order has been received.

The company had replied

The company also said that in response to the show cause notice, it had given clarification on the allegations along with supporting documents and judicial precedents. This appears to have not been appreciated by the authorities while passing the order.

Subsequently, the company said it received the order passed by Delhi Central Tax Commissioner (Adjudication) on April 1.

Fine demanded

Zomato informed that the company has received an order passed by the Commissioner, Adjudication, Central Tax, Delhi for the period October 2014 to June 2017, levying service tax of Rs 92,09,90,306 along with applicable interest and penalty and penalty of Rs 92,000. A fine of Rs 09,90,306 has been demanded.

The company said it will file an appeal against the order before the appropriate authority as it believes it has a “strong case on merits.”


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