Tax dept sends R50-cr notice to delhi hotel

Almost a year after a team of sales tax officials complained that a Delhi minister tried to influence them when they raided a resort to investigate a possible case of tax evasion, the sales tax department has sent a "demand notice" of about R50 crore on the resort. HT reports.

Almost a year after a team of sales tax officials complained that a Delhi minister tried to influence them when they raided a resort to investigate a possible case of tax evasion, the sales tax department has sent a "demand notice" of about R50 crore on the resort.

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According to senior tax department officials, a demand notice of about R50 crore was sent to south Delhi-based Tivoli Hotels. The amount, said officials, include nearly R30 crore in tax assessment. The remaining amount is penalty and interest. Sources said that the hotel declared a turnover of R68.84 crore, as against their estimated turnover of R319.20 crore.

The resort has been fined for not disclosing the actual number of guests and under-quoting per heard rates and charges.

“Every month we send demand notices to almost 12,000 traders. This company is one of them. The company has all the right to appeal to the first appellate court and later to the tribunal and courts against our demand notice,” Delhi value added tax commissioner Jalaj Shrivastava said.

"We have not received that notice so far. We are a law-abiding company and we will respond to the notice whenever it reaches us. We have nothing to hide," said Rohit Gupta, chief executive officer, Tivoli Hotels.