Mahindra Holidays & Resorts India Faces Tax Demand Notice of Rs 16.77 Crore
Mahindra Holidays & Resorts India Ltd revealed on Wednesday that tax authorities have issued a demand notice amounting to around Rs 16.77 crore, inclusive of a penalty. The company disclosed this information through a regulatory filing, stating, “We wish to inform you that the company has received an Order dated August 13, 2024, from the Assistant Commissioner, Anna Salai, Chennai Central, Tamil Nadu.”
In response to the notice, the company affirmed that it is taking the necessary measures to pursue legal remedies before the appropriate authority. The filing detailed, “The Company has received an Order from the Authority for FY2019-20 requiring the Company to pay a demand of Rs 16,76,61,092 (including a penalty of Rs 88,81,479) under applicable provisions of the TN GST Act, 2017 & CGST Act, 2017.
Furthermore, the order is attributed to various factors including GST on Other Incomes, Reverse Charge Mechanism on Other Expenses, Excess utilization of ITC, and Reversal of ITC on exempt supplies. Despite this development, Mahindra Holidays & Resorts India Ltd expressed that it does not foresee the order to have any significant financial impact on the company.
The hospitality firm’s commitment to addressing the situation and its assessment of the potential financial implications reflect its proactive approach to managing these regulatory challenges.
