"We are in receipt of a notice from the tax department relating to certain matters prior to 2017 in our mobility business. These pertain to the erstwhile service tax regime,” said Ola
spokesperson on Monday evening. The SoftBank-backed company said it has been actively engaged with the department and are cooperating with the tax authorities and are confident that it will be able to resolve this satisfactorily. “Ola is a proud taxpayer and we comply with all our tax obligations and have contributed several thousand crores in taxes over the last 4 years alone,” said the Ola spokesperson.
“Uber is a law-abiding and compliant company. We are working closely with the authorities on all tax-related queries and will respond accordingly,” said an Uber spokesperson.
Intelligence has reportedly found that Uber India and Ola did not pay goods and services tax (GST) on the incentives paid to drivers for many years. Also, the firms have allegedly not paid the GST
amount on ride cancellations.
Besides Ola and Uber, many tech companies
have come on the radar of the income tax (I-T) department. The income-tax department recently conducted surveys at Instakart, a group company of e-commerce giant Flipkart, and food delivery firm Swiggy in Bengaluru. The surveys are related to an alleged bogus input tax credit connected to the external vendors of these firms, according to the sources.
Last week, a team of I-T department officials reached the office of Instakart, located on the Flipkart campus in Bengaluru. They were investigating Merlin and Surya Services, which are the third-party vendors for Instakart. An I-T department team also landed at the office of Swiggy to conduct the survey. According to the sources, due to a third-party vendor Greenfinch’s alleged default, the department initiated a follow-up survey at Swiggy.
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