Zomato, India’s leading online food delivery platform, disclosed that it has received a service tax demand and penalty order amounting to over ₹184 crore for the period from October 2014 to June 2017.
In response, the company stated its intention to file an appeal against the order before the appropriate authority. The demand pertains to the non-payment of service tax on certain sales conducted by Zomato’s foreign subsidiaries and branches to customers located outside India.
The regulatory filing by Zomato revealed that the order was issued by the Commissioner, Adjudication, Central Tax, Delhi, demanding service tax of ₹92,09,90,306, along with applicable interest and penalty of the same amount.
Zomato emphasized that it had provided a comprehensive response to the show cause notice, presenting clarifications, supporting documents, and judicial precedents, which it believes were not adequately considered by the authorities when passing the order.
The company expressed confidence in its position, stating that it has a strong case to defend before the relevant appellate authority, and it does not anticipate any significant financial impact as a result of this matter.
Zomato’s shares closed at ₹183.05, marking a -0.81% decline from the previous day’s closing of ₹184.55. The intra-day high was ₹188, while the low was ₹183. The company’s market capitalization stood at ₹160,104.84 crore, with a 52-week high of ₹188.95 and a 52-week low of ₹49. The BSE volume for the day totaled 2,255,780 shares.
