MakeMyTrip gets Rs 73.9 crore tax refund
Online travel firm MakeMyTrip has received a tax refund of Rs 739 crore, an amount it had deposited with DCGEI under protest pursuant to a probe into service tax matters, according to a regulatory filing
DCGEI has refunded the amount to MMT India and ibibo India.
New Delhi: Online travel firm MakeMyTrip has received a tax refund of Rs 73.9 crore, an amount it had deposited with DCGEI under protest pursuant to a probe into service tax matters, according to a regulatory filing.
In the filing to the United States Security Exchange Commission, the NASDAQ-listed company said that after the Supreme Court upheld the decision of the Delhi high court directing the Directorate General of Central Excise Intelligence (DCGEI) to refund the tax amounts due to the company, DCGEI has refunded the amount to MMT India and ibibo India.
"During the year ended March 31, 2016, MakeMyTrip (India) Pvt Ltd and ibibo Group Pvt Ltd had deposited a total amount of Rs 73.9 crore as tax under protest pursuant to an ongoing investigation by the DGCEI that began during that fiscal year for matters related to service tax on hotel bookings facilitated by MMT India and ibibo India during certain previous periods," the filing said.
The high court thereafter directed the DGCEI to refund these tax amounts, while allowing the body to continue with the adjudication proceedings, it added.
"The Delhi High Court's order was further upheld by the Supreme Court of India in the appellate proceedings initiated by the DGCEI, and consequently the DGCEI processed a full refund of the aforementioned tax amount, and the funds have been received by MMT India and ibibo India as on February 25, 2019," the filing said.
In 2016, central excise authorities had arrested MakeMyTrip Vice-President (Finance) M K Pillai for alleged evasion of service tax, a move that was challenged by the company in the Delhi High Court.