New Delhi [India], Food delivery company Zomato has received a GST (Goods and Services Tax) demand notice of Rs 9.5 crore, the company informed the exchanges in a filing on Sunday.
The company said it received a notice order from the Assistant Commissioner Commercial Taxes (Audit) Karnataka on Saturday demanding a huge amount of GST, totaling Rs 5,01,95,462, along with additional interest and penalty.
The authority has demanded Rs 5.01 crore GST, Rs 3.93 crore interest and Rs 50.19 lakh penalty, taking the total to Rs 9.5 crore.
"The company has received a GST demand of Rs 5,01,95,462 along with a sum of Rs 5,01,95,462 for the financial year 2019-20 as per the audit of GST returns and accounts by the Assistant Commercial Tax Commissioner (Audit), Karnataka. Order received, Zomato said, Rs 3,93,58,743/- and fine Rs 50,19,546.
The company said it responded to the show cause notice with a detailed explanation supported by relevant documents and judicial precedents. However, the authority is not satisfied with the response of the company.
The company also told the exchange that the tax notice will not have any significant financial impact on the company.
"The company believes it has a strong case to defend the case before the relevant appellate authority and does not expect any financial impact on the company," Zomato said.
The company's shares closed at Rs 199.80 on Friday.
The company said it received a notice order from the Assistant Commissioner Commercial Taxes (Audit) Karnataka on Saturday demanding a huge amount of GST, totaling Rs 5,01,95,462, along with additional interest and penalty.
The authority has demanded Rs 5.01 crore GST, Rs 3.93 crore interest and Rs 50.19 lakh penalty, taking the total to Rs 9.5 crore.
"The company has received a GST demand of Rs 5,01,95,462 along with a sum of Rs 5,01,95,462 for the financial year 2019-20 as per the audit of GST returns and accounts by the Assistant Commercial Tax Commissioner (Audit), Karnataka. Order received, Zomato said, Rs 3,93,58,743/- and fine Rs 50,19,546.
The company said it responded to the show cause notice with a detailed explanation supported by relevant documents and judicial precedents. However, the authority is not satisfied with the response of the company.
The company also told the exchange that the tax notice will not have any significant financial impact on the company.
"The company believes it has a strong case to defend the case before the relevant appellate authority and does not expect any financial impact on the company," Zomato said.
The company's shares closed at Rs 199.80 on Friday.
