TajGVK Hotels gets Rs 42 lakh tax demand order
The order relates to “mismatch” in service tax abatement availed by the company; hospitality firm to file an appeal
New Delhi: TajGVK Hotels on Thursday said it has received an assessment order amounting to Rs 42.13 lakh in tax demand, interest and penalty related to “mismatch” in service tax abatement availed by the company.
The hospitality firm said it is in the process of filing an appeal against the said order for the period between April 1, 2015 and June 30, 2017.
The order was passed by the Office of Commissioner of Customs & Central Tax, Appeals-I, Commissionerate, Hyderabad, in relation to the Assessment of Service Tax for the hotels of Taj Krishna, Taj Deccan and Taj Banjara.
In a regulatory filing, TajGVK Hotels stated the “demand of tax (is) mainly on the ground of mismatch due to difference of percentage of abatement availed on the Service Tax during the period 01.04.2015 to 30.06.2017”.
“There will be no impact on the operations or other activities of the company. The company is in the process of filing an appeal against the said order,” it added.
TAJGVK Hotels & Resorts Limited (TajGVK) is a joint venture formed through a strategic alliance between Hyderabad-based GVK Group and the Indian Hotels Company Limited (IHCL) in 1999.
GVK Group is a multi-product and multi-location business conglomerate with several integrated companies in India and abroad. IHCL is a Tata enterprise with a chain of hotels owning the Taj Group of Hotels and manages and operates various hotels across the country and abroad.
The company owns and operates three five-star hotels in Hyderabad and one five-star hotel each in the cities of Chennai, Chandigarh and one five-star luxury hotel at Mumbai through joint venture company ie, Green Woods Palaces and Resorts Pvt Ltd.
