Zomato To Cough Up This Whopping Amount As Service Tax Demand & Penalty

New Delhi:  Online food delivery platform Zomato might have to cough up Rs 184 crore as service tax demand and penalty. The demand order has been received for non-payment of service tax for the period October 2014 to June 2017 determined based on certain sales made by the foreign subsidiaries and branches of the company to its customers located outside India, the company said in a late-night regulatory filing. The company will file an appeal against it before an appropriate authority, PTI reported.

The company also mentioned that in its response to the show cause notice it had clarified on the allegations along with supporting documents and judicial precedents, “which appears to not have been appreciated by the authorities while passing the order.” Subsequently, the company said it received the order passed by the Delhi Central Tax Commissioner (Adjudication) on April 1.

“The company has received an order for the period October 2014 to June 2017 passed by the Commissioner, Adjudication, Central Tax, Delhi raising demand of service tax of ₹ 92,09,90,306, along with applicable interest (not quantified) and penalty of ₹ 92,09,90,306,” Zomato said.

The company said it will be filing an appeal against the order before an appropriate authority as it believes it has a “strong case on merits,” the report added

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