December 28, 2023
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Zomato gets Rs 402 crore tax notice
Shares of Zomato Ltd will be in focus on Thursday morning after the online food delivery firm informed stock exchanges that it has received a show cause notice under Section 74(1) of the Central Goods and Services Tax Act, 2017 from the Directorate General of GST Intelligence, Pune Zonal unit. The share has rallied 110 per cent in 2023 so far.
The show cause notice, Zomato said, requires the company to show cause as to why an alleged tax liability of Rs 401.70 crore along with interest and penalty for the period from October 29, 2019 to March 31, 2022 should not be demanded from the company.
“The amount alleged in the SCN is based on the amounts collected by the company as delivery charges from the customers on behalf of the delivery partners during the referred period. The company strongly believes that it is not liable to pay any tax since the delivery charge is collected by the company on behalf of the delivery partners,” Zomato said in a BSE filing.
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