Food delivery platform Zomato has received a tax demand and penalty worth Rs 23.26 crore from Karnataka tax authorities, the company said on Sunday. The company, however, said it believed it had a strong case on merits and it will be filing an appeal against the order before the appropriate authority.
Zomato said the demand order had been received for excess availment of input tax credit and interest penalty. “The company, in its response to the show cause notice, had clarified on the issue along with relevant documents and judicial precedents, which appears to not have been appreciated by the authorities while passing the order,” it said in an exchange filing.
“The company believes that it has a strong case to defend the matter before the appellate authority,” Zomato said, adding that it does not expect any financial impact on the company.
Also read: NASA to launch three space missions in April
