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Nazara Subsidiaries Receive Tax Notices Worth INR 1,119.93 Cr

Inc42 · 1y ago

Nazara Subsidiaries Receive Tax Notices Worth INR 1,119.93 Cr

Gaming company Nazara Technologies is facing tax scrutiny as its subsidiaries, Openplay Technologies and Halaplay Technologies, have received tax notices from the Director General of GST Intelligence. Openplay Technologies was served a Show Cause Notice with a proposed liability of INR 845.72 Cr. These subsidiaries contributed to less than 2% of Nazara's revenues and less than 1% of its profit for the quarter ended March 2024. The notice pertains to the period from 2017-18 to 2022-23.

Related News

Nazara Gets Interim Relief In INR 845 Cr GST Notice Case

Inc42 · 1y ago

Nazara Gets Interim Relief In INR 845 Cr GST Notice Case

- Nazara Technologies received tax notices totaling INR 1,119.93 Cr for two of its subsidiaries, Openplay Technologies and Halaplay Technologies. - The High Court issued directions to not give any effect to the orders passed by the tax authority (DGGI, Kolkata) regarding the show cause notice. - In addition to the recent tax notices, Nazara also received a GST show cause notice from the Mumbai office of DGGI for INR 2.84 Cr last year. - The online gaming major is currently dealing with legal implications related to these tax issues. - The total amount in tax notices faced by Nazara Technologies and its subsidiaries is substantial, posing potential financial challenges.

Nazara Technologies' two subsidiaries get Rs 1,120 crore GST demand notice

Economic Times

Economic Times · 1y ago

Nazara Technologies' two subsidiaries get Rs 1,120 crore GST demand notice

Online gaming and sports company Nazara Technologies has revealed that two of its subsidiaries, Openplay Technologies and Halaplay Technologies, have received show cause notices from the Director General of GST Intelligence, Kolkata. The notices amount to a total liability of INR 1,120 crore. The claims pertain to the calculation of Goods and Services Tax (GST) on player contributions versus gross gaming revenues. The subsidiaries are currently reviewing the notices with their legal counsels and tax advisors to determine their course of action. The subsidiaries' contribution to Nazara Technologies' revenues and profits for Q4 2024 was minimal.

I-T Department uncovers INR 10,000 Cr tax fraud by sellers on Facebook, Insta

Inc42 · 2y ago

I-T Department uncovers INR 10,000 Cr tax fraud by sellers on Facebook, Insta

The Income Tax Department of India has uncovered tax evasion worth INR 10,000 Cr (approximately $1.3 billion) over three years by e-tailers selling products on social media platforms like Instagram and Facebook. Notices have been sent to 45 pan-India brands, with more expected to receive notifications for tax non-payment or underreporting. The investigation focuses on assessment years from 2020 to 2022 and includes renowned retailers operating on these platforms. The use of social media for selling goods has increased, but income from such sales often remains undeclared and taxes unpaid.

DGGI Detects Tax Evasion Of INR 81K Cr By Gaming Cos In FY24

Inc42 · 1y ago

DGGI Detects Tax Evasion Of INR 81K Cr By Gaming Cos In FY24

According to the annual report from DGGI, the online gaming industry was found to be most susceptible to tax evasion in the fiscal year 2023-2024. The BFSI (Banking, Financial Services, and Insurance) sector also showed a high risk of tax evasion. During this period, DGGI identified 6,084 cases of GST evasion worth INR 2.01 Lakh Cr, compared to 4,872 cases worth INR 1.01 Lakh Cr in the previous fiscal year. In response to the imposition of a 28% GST, several online gaming companies received notices to pay pending taxes amounting to INR 1.12 Lakh Cr.

Nazara Technologies to challenge Rs 2.84 Cr GST demand over export payment delays

YourStory

YourStory · 1y ago

Nazara Technologies to challenge Rs 2.84 Cr GST demand over export payment delays

Nazara Technologies received a demand of Rs 5.68 crore from tax authorities for back taxes, penalties, and interest due to export payment delays, with Rs 2.84 crore under GST laws. The company plans to appeal, stating it won't materially affect operations. Nazara's subsidiaries previously faced GST liabilities of Rs 1,120 crore but obtained temporary relief. These subsidiaries contribute minimally to Nazara's revenue. The GST Council raised the tax rate for online gaming to 28% recently.

Zomato shares open flat after tax authorities slap notice to food delivery firms

Inc42 · 2y ago

Zomato shares open flat after tax authorities slap notice to food delivery firms

Zomato shares opened flat after the news that food delivery platforms Zomato and Swiggy have been served tax notices over non-payment. The notices amount to a cumulative goods and services tax (GST) worth around INR 1,000 Cr. The tax authorities consider the delivery charges collected by these platforms as their revenue. Both Zomato and Swiggy have been asked to pay INR 500 Cr each, which is the 18% tax levied on the total amount collected as delivery fees. This development could potentially disrupt the cash flow of these food delivery giants.

Fresh Trouble Brews For Zomato, Gets INR 92 Cr Tax Demand Notice

Inc42 · 2y ago

Fresh Trouble Brews For Zomato, Gets INR 92 Cr Tax Demand Notice

Zomato has received an order to pay service tax of INR 92 crore for the period of October 2014 to June 2017, in addition to a penalty and applicable interest. This comes after the company recently received a GST notice of INR 23.26 crore for FY19. However, Zomato believes it has a strong case to defend the matter and does not expect any financial impact. The company has been facing various tax-related notices in recent months. Despite these challenges, Zomato reported a profitable quarter with a significant increase in profit after tax.

Nazara Raises INR 220 Cr from SBI Mutual Fund

Inc42 · 1y ago

Nazara Raises INR 220 Cr from SBI Mutual Fund

Gaming company Nazara Technologies has secured INR 220 crore ($30 million) from SBI Funds Management. This comes after Nazara announced in September that its board had approved a preferential equity issue to raise INR 900 crore. Nazara plans to issue 2.31 million equity shares at INR 954.27 per share to SBI Funds Management. The funding will be used for business expansion and strategic investments in the gaming sector.

Nazara To Make Its Biggest Bet Of INR 982 Cr In Pokerbaazi Parent

Inc42 · 1y ago

Nazara To Make Its Biggest Bet Of INR 982 Cr In Pokerbaazi Parent

Nazara, a startup, has entered into an agreement to acquire a 47.7% stake in Moonshine Technology, the parent company of online poker platform Pokerbaazi. This acquisition will enhance Nazara's presence in the online gaming industry and make Moonshine a subsidiary of Nazara. Moonshine Technology has several subsidiaries, including Ross Technologies, Baazi Networks, Baazi Games, and SBN Gaming Network.

Govt serves online gaming companies tax notices worth Rs 1 lakh crore

Economic Times

Economic Times · 2y ago

Govt serves online gaming companies tax notices worth Rs 1 lakh crore

The Indian government has issued show cause notices worth Rs 1 lakh crore ($13.4 billion) to online gaming companies for tax evasion, according to a senior official. The notices are part of efforts to crack down on tax evasion in the gaming industry. From October 1, foreign gaming companies are required to register in India under the amended GST law. The notices have been served to companies like Dream11, Delta Corp, and GamesKraft.

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