MakeMyTrip.com in Rs. 75 Crore Tax Evasion Case!

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MakeMyTrip.com in Rs. 75 Crore Tax Evasion Case!

In recent shocking events, online travel company MakeMyTrip.com is in a tax evasion case, the amount of which is a whopping Rs. 75 crore! According to officials, the travel services website, which has been highly successful, has not deposited service tax of the mentioned amount of around 75 crore, although the service tax had been collected from customers. The Directorate General of Central Excise Intelligence (DGCEI) has registered a case against them.

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MakeMyTrip.com’s new logo.

A probe was made, and a senior executive of the company was arrested by DGCEI officials, and then let out on bail last week. On being questioned, the company has said that this is an industry issue and that it will be contested with the appropriate authorities.

A spokesperson of the website said, “At MakeMyTrip, we strongly believe in an ethical, transparent and compliant corporate culture and abide by all laws and regulations of the country. The service tax case in question is potentially an industry issue that can impact all Online Travel Agents (OTAs).

“We have a strong case as advised by our tax advisors and therefore will be contesting the matter with the appropriate authorities. We are extending our full cooperation to the authorities in the investigation. Further, the company official who was detained by the authorities has already been released.”

Service tax is charged at the rate of 14.5% (including 0.5% of Swachh Bharat Cess). The company was found to have taken two kinds of service tax -service tax on 60% of the rate negotiated by MakeMyTrip with the hotels towards renting of rooms,and service tax on 10% of the gross value on the customer vouchers by treating themselves as tour operators. The second category of service tax was being mentioned as MMT (Make My Trip) Tax by the firm, sources said.

This is truly shameful behaviour on the part of a company which is not only doing very well, but has also established a name and reputation for itself within the country, and globally.

Do you think this case will have a permanent impact on MakeMyTrip.com? Tell us in the comments section!

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