Schloss Bangalore's arm Tulsi Palace Resort gets Rs 4.66 cr tax demand notices

New Delhi, Jun 10 (PTI) Brookfield-backed Schloss Bangalore, which operates Leela Palaces Hotels and Resorts, on Tuesday said its subsidiary has received show cause notices from the Central GST department, Jaipur raising a tax demand of Rs 4.66 crore for alleged violations of various taxation norms.

The show cause notices issued to Tulsi Palace Resort Private Limited (TPRPL), a material subsidiary of the company, is for alleged violations pertaining to wrongful adjustment of tax liability and non-payment of IGST on import of services under reverse charge mechanism.

In a regulatory filing, Schloss Bangalore said it "will file an appropriate response before the adjudicating authority" on the show cause notices issued to TPRPL.

"TPRPL, a material subsidiary of the company, has received show cause notices under sections 73 and 74 of the Central Goods and Services Tax Act, 2017, read with the corresponding provisions of the State Goods and Services Tax Act, 2017 and the Integrated Goods and Services Tax Act, 2017, raising an aggregate demand amounting to Rs 4.66 crore (excluding interest and penalty) for certain alleged violations," it said.

The tax demand has been raised by the Office of the Commissioner, Central Goods and Service Tax Audit Commissionerate, Jaipur.

"TPRPL...has received the show cause notices for alleged (i) wrongful adjustment of tax liability in table 5O of Form GSTR-9C during the financial years 2021-22 and 2022-23; and (ii) non-payment of IGST on import of services under reverse charge mechanism during the financial years 2018-19 to 2022-23," Schloss Bangalore stated.

"TPRPL will file an appropriate response before the adjudicating authority. The show cause notices have no material impact on the financial, operation and other activities of the company," it added. PTI RSN RSN SHW