Understanding Zomato's Service Tax Demand and Penalty: What You Need to Know

According to a recent report, the biggest e-commerce food company, Zomato received a service tax demand and penalty order of over Rs184 crore for the period October 2014 to June 2017.

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The company stated it would file an appeal against the order before an appropriate authority. The demand order is related to the non-payment of service tax for certain sales made by Zomato's foreign subsidiaries and branches to customers established outside India.

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The company received the order from the Delhi Central Tax Commissioner on April 1 and intends to defend the matter before the relevant appellate authority. Zomato also highlighted that it does not expect any financial impact on the company from this issue.

Moreover, it's worth noting that Zomato's shares closed at Rs183.05, showing a decrease of -0.81% from the previous day's closing price of Rs184.55. The intra-day high and low were Rs188 and Rs183, respectively. Furthermore, Zomato's market capitalization stood at Rs160,104,84 crore, with a 52-week high of Rs188.95 and a low of Rs49.