TajGVK Challenges Tax Demand Over Service Tax Mismatch

TajGVK Hotels faces a Rs 42.13 lakh tax demand for service tax discrepancies for 2015-2017. The firm plans to appeal the order from the Office of Commissioner of Customs & Central Tax, Hyderabad, impacting Taj Krishna, Taj Deccan, and Taj Banjara. Operations remain unaffected.

TajGVK Hotels announced on Thursday that it has received a tax demand totaling Rs 42.13 lakh due to a discrepancy in service tax abatement. This assessment addresses the period from April 1, 2015, to June 30, 2017, and involves interest and penalties.

The Office of Commissioner of Customs & Central Tax, Appeals-I, Commissionerate, Hyderabad issued the order. It specifically pertains to the hotels under TajGVK: Taj Krishna, Taj Deccan, and Taj Banjara. The main issue cited in the assessment is a mismatch stemming from varying percentage rates of service tax abatement.

Despite this development, TajGVK assures stakeholders that there will be no operational impacts. The hospitality firm, a joint venture between GVK Group and Indian Hotels Company Limited, plans to file an appeal against the order to resolve this tax liability.

(With inputs from agencies.)