The enforcement agency for checking indirect tax evasion has asked Tata Sons to clear a goods and services tax (GST) bill of Rs 1,524 crore, reports said. The demand has been raised against the payment made to Japanese firm NTT DoCoMo in 2017.
The Directorate General of GST Intelligence (DGGI) has Tata Sons, the holding company of Tata Group, to pay 18 per cent GST on $1.17 billion paid to NTT Docomo in 2018, CNBC TV18 reported. Tata Sons had paid the amount to NTT Docomo in a three-year dispute which allowed the Japanese telecom major to exit its 26.5 per cent stake in the India telecom operator Tata Teleservices.
The Mumbai unit of DGGI had booked a case in February 2019 following detailed inspection. The agency is in talks with Tata Sons over the matter. However, the report suggests that Tata Sons intend to contend the tax demand, and the agency will send a show cause notice in due time.
At the end of last month, the Directorate General of Anti Profiteering (DGAP) has found Tata Starbucks guilty of profiteering to the tune of Rs 4.51 crore by not reducing prices of coffee despite a cut in the rate. The agency revealed that Tata Starbucks, the equal joint venture between the Tata and global coffee chain Starbucks, had hiked the base price of one of its coffee variants after the GST Council slashed tax rates on restaurants from 18 per cent to 5 per cent with effect from November 15, 2017.
This kept the retail sale price of the product post GST rate reduction intact same as before. This case will be now heard by the National Anti-Profiteering Authority (NAA), which will pass the final order about the quantum of profiteering.