The demand order pertains to the goods and services tax (GST) on export services from July 2017 to March 2021, according to the company.
The tax was determined based on export services provided by the company to its foreign subsidiaries located outside India, the company said in a regulatory filing on Friday.
“We believe that we have a strong case on merits and the company will be filing an appeal against the order before the appropriate authority,” the platform said.
The company, however, expects no financial impact from this development.
Earlier, Zomato saw its international operations as a key growth area. However, revenue from overseas comprised a minute portion of its earnings. As a result, the platform has been gradually shutting down its international business.
Discover the stories of your interest
ET had earlier reported that the Gurgaon-based company had shuttered almost all of its international subsidiaries including those in Singapore, the UK, the US and South Africa.On January 5, ET reported that Zomato initiated the liquidation process for its Vietnam business. Prior to this, it had commenced the liquidation process for its business in Poland, Gastronauci, on December 2.
According to the company, the liquidation of its subsidiaries will not have any impact on the overall operations of the company as it was not engaged in any active business operations in these foreign markets.
On April 2, ET reported that Zomato had received a service tax demand and penalty order aggregating more than Rs 184 crore related to the non-payment of service tax from October 2014 to June 2017. The tax was determined on the basis of certain sales made by the company’s foreign subsidiaries and branches to its customers located outside India.
Similarly on April 1, the Karnataka commercial taxes authority had issued a tax demand notice of Rs 23 crore. The tax notice had been issued for availing excess input tax credit under the goods and services tax (GST) rules.
