Zomato Tax Notice: Another blow to Zomato, now tax demand of Rs 184 crore received in Delhi

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Zomato Service Tax: This is the second notice Zomato has received from the tax department within a month. Earlier, the company had also received a demand notice worth crores in Gujarat…

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The tax department has given a second blow to food delivery company Zomato within a month. Last month, the company had received a notice of tax demand from the Gujarat GST Department. Now the company has received a notice of about Rs 184 crore in Delhi.

Notice worth more than Rs 184 crore
Zomato informed about the new notice in a regulatory filing late on Tuesday night. The company said that it has received a notice from the Service Tax Department in Delhi. In the notice, a demand of more than Rs 184 crore has been made by the Service Tax Department. The tax department’s demand also includes penalty. This demand is for the period from October 2014 to June 2017.

Tax demand and interest-penalty
According to the information given by the company, the demand order has been passed by the Adjudication Commissioner of Central Tax, Delhi. In the order, a demand has been made for service tax of Rs 92 crore 9 lakh 90 thousand 306. Apart from this, interest and penalty of Rs 92 crore 9 lakh 90 thousand 306 has also been demanded. In this way the total demand is more than Rs 184 crore.

The company is going to file an appeal
Zomato received this notice passed on 1st April. The company said that it had earlier been issued a show cause notice by the Tax Department, to which the company had responded with supporting documents. However, it seems that the tax department is not satisfied with its reply and now a demand notice has come. The company is confident of its response and hence has said that it will file an appeal against the order before the appropriate authority.

This notice was received in Gujarat
Earlier, the company had received a penalty notice from the GST department in Gujarat, in which a demand of more than Rs 8 crore was made. The notice from the Deputy Commissioner of State Tax of Gujarat was for the financial year 2018-19. Gujarat GST had sent a demand order of more than Rs 4 crore. After adding interest and penalty, the total amount became more than Rs 8.5 crore. The company had talked about appealing against that demand also.

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