TAJ GVK Hotels Gets ₹42 Lakh Service Tax Demand Over Abatement Mismatch
TAJ GVK Hotels has received a Rs. 42 lakh service tax demand over alleged discrepancies in the abatement percentage claimed between April 2015 and June 2017 and plans to appeal
TAJ GVK Hotels & Resorts Ltd has disclosed that it has received a service tax demand order of Rs. 42.13 lakh, including interest and penalty, from the Commissioner of Customs & Central Tax (Appeals-I), Hyderabad. The demand relates to the company’s hotels, Taj Krishna, Taj Deccan, and Taj Banjara — all located in Hyderabad for the period between April 1, 2015, and June...
TAJ GVK Hotels & Resorts Ltd has disclosed that it has received a service tax demand order of Rs. 42.13 lakh, including interest and penalty, from the Commissioner of Customs & Central Tax (Appeals-I), Hyderabad. The demand relates to the company’s hotels, Taj Krishna, Taj Deccan, and Taj Banjara — all located in Hyderabad for the period between April 1, 2015, and June 30, 2017.
In its report dated 10 April 2025, the company stated that the tax demand was raised due to an alleged mismatch in the percentage of abatement availed under the Service Tax rules during the specified assessment period.
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The total amount of Rs. 42,13,881 has been levied under the provisions of the Service Tax Act, and includes basic demand, interest, and penalty. The company clarified that this is a legacy issue from the pre-GST era and does not impact the current operations of the company in any way.
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TAJ GVK also confirmed that while the financial implication is limited to the amount mentioned, it is already in the process of filing an appeal against the said order.
As of April 12, 2025, the share price of TAJ GVK Hotels & Resorts Ltd. closed at Rs. 474.10 on the stock exchange, registering a gain of 3.48% from the previous trading day. The stock has been quite active over the past year, trading between a low of Rs. 281.05 and a high of Rs. 518.85.
The company currently has a market capitalization of around Rs. 2,427 crore, making it a small-cap firm in the hospitality sector. Financially, TAJ GVK has shown strong performance, with net sales of Rs. 126.94 crore and a net profit of Rs. 41.18 crore reported for the December 2024 quarter.
As of April 11, 2025, the stock of Taj GVK Hotels & Resorts Limited (NSE: TAJGVK) closed at Rs. 426.95, marking a sharp increase of Rs. 19.70 or 4.85% compared to its previous close of Rs. 406.25. The stock opened the day at Rs. 419.00, reached a high of Rs. 433.90, and dipped to a low of Rs. 410.05 during trading hours. The volume-weighted average price (VWAP) stood at Rs. 425.45 for the day.
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