Yatra Online & Subsidiary Receive Show Cause Notices for FY23
Yatra Online Limited and its subsidiary Globe ALL India Services Limited received Show Cause Notices for FY23. Yatra faces a proposed demand of ₹21.36 crore (plus interest and penalty) related to turnover treatment. The subsidiary faces a proposed demand of ₹18.53 crore (plus interest and penalty) for trade receivables and ITC issues. Both companies will submit detailed responses within a month.
The proposed tax demands, interest, and penalties are substantial. While the company believes it has grounds to defend itself, the outcome could have a material financial impact if the demands are upheld.
The company and its subsidiary have received Show Cause Notices from tax authorities proposing significant tax demands, interest, and penalties, indicating potential financial liabilities and legal challenges.
Yatra Online Limited and its wholly-owned subsidiary, Globe ALL India Services Limited, have each received Show Cause Notices (SCNs) from tax authorities for the financial year 2022-23.
Yatra Online Limited received an SCN from the Deputy Commissioner of State Tax, Mumbai, proposing a tax demand of ₹21.36 crore, along with ₹16.98 crore in interest and ₹1.52 crore in penalty. The notice alleges that certain receipts in the company's bank statements should be treated as taxable turnover, despite Yatra's position that these amounts were received as a facilitator for onward payments to hotels. The department also proposed GST on alleged commission income computed on a presumptive basis. Other allegations relate to credit notes, input tax credit, GST return differences, fixed asset disposals, and cancellation charges.
Globe ALL India Services Limited received an SCN from the Deputy Commissioner of Commercial Taxes, Bengaluru, proposing a tax demand of ₹18.53 crore, with ₹11.42 crore in interest and ₹1.85 crore in penalty. The primary allegations involve the treatment of trade receivables as outward supplies, non-reversal of Input Tax Credit (ITC), and mismatch of turnover based on TDS records.
In both cases, the companies are preparing detailed responses to the SCNs, which are to be submitted within one month of the issuance of the notices. Yatra Online Limited firmly believes it has reasonable legal and factual grounds to defend its case before the appropriate authorities.
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Yatra Online Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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