An investigation has been initiated by DGGI (Directorate General of GST Intelligence) against the cab giants Ola and Uber who are alleged to have been involved in tax evasion of hundreds of crores. The officials of the two companies have been summoned by DGGI.
According to reports in certain news portal, the tax liability has been calculated at around Rs. 800 crore in the case of Uber India while the tax liability of Ola Cabs stands at around 300 crores.
A spokesperson from Uber has commented regarding it “Uber is a law-abiding and compliant company. We are working closely with the authorities on all tax-related queries and will respond accordingly.”
Ola spokesperson has admitted that they have received a notice from the tax department in relation to certain matters prior to 2017. He also informed that the notice pertains to the erstwhile service tax regime. Ola also said that they are actively engaged with the department and are co-operating with the authorities. They are quite confident the matter would be resolved soon.
The news portals are also reporting GST intelligence has found that these online-based taxi service providers didn’t pay GST on the incentives paid to drivers for many years. Even that these firms have not paid GST on receipts against rides that were canceled.
The news of the GST investigation has caught everyone’s attention. We would update our Taxpyramid readers as more credible information and updates are received regarding it.
