A MakeMyTrip spokesperson confirmed this demand to the publication and noted that the demand has however significantly reduced after an adjustment of brought forward losses in accordance with a favorable order from appellate authorities earlier. However, he didn’t disclose the revised tax demand to the publication.
The spokesperson also informed that MakeMyTrip has filed an objection against this demand with the Commissioner of Income Tax (appeals) on May 30, 2013. We have contacted MakeMyTrip for more details on this and will update once we get a response.
MakeMyTrip Financials: Last month, MakeMyTrip had reported a net loss of $6.5 million for the quarter ending March 31, 2012, a significant decline from a $3 million profit reported in the same quarter last year. This was on Net Revenues (Revenue less service costs) of $21.77 million, down 1.4% from $22.1 million revenues reported in the same quarter last year.
For the year ending March 31, 2013, MakeMyTrip reported a net loss of $6.04 million for FY13, a significant decline from $9.3 million profit in the previous fiscal. Net Revenues (Revenue less service costs) stood at $88.17 million, a minor dip from $88.18 million revenues in the previous fiscal.
Recent Tax Demands
– Nokia: In January 2013, Nokia had received a tax claim of €225 million ($294 million) plus applicable Interest from Indian tax authorities, following which the company had filed a petition with the Delhi High Court in March 2013. Nokia withdrew its application a month later and the Delhi High Court had directed Nokia to file an appeal with the Commissioner of Income Tax (Appeals), which was rejected by the Income Tax commissioner earlier this month.
Nokia had then said it is now considering all viable options, including taking back the case to the Delhi High Court. A The Hindu Business Line report suggests Finland’s economic ministers are expected to take up this issue in their meeting with India’s Commerce and Industry Minister Anand Sharma later this week.
– Vodafone: Vodafone is also involved in a long drawn tax demand case with the Indian authorities. Earlier this month, a NDTV report had suggested that the cabinet had approved Vodafone’s proposal to negotiate a out of the court settlement.
– Samsung India: In April 2013, Samsung India had received a show cause notice from the IT department, claiming that the company hadn’t paid tax on Rs 1,139.21 crore revenue for the assessment year 2006-07, as indicated by a Livemint report. Samsung India however had then said that it had not received any official notice from the Indian government yet.
– Google India: Google India had received a Rs 76 crore tax demand from the IT Department in November 2012 for crediting its revenues to Google Ireland. In April 2013, the Kolkata bench of the Income Tax Appellate Tribunal had however ruled that since Google Ireland and Overture USA did not have any permanent establishment in India, companies don’t have any obligation to deduct tax at source for those payments, given double taxation treaties between India and both the USA and Ireland.
– On Taxing The Internet Economy – Abhishek Singh, Director, E-Governance, DIT
– eBay Inc’s Profits Not Taxable In India: Mumbai Income Tax Appellate Tribunal
– The Lowdown: No TDS Deduction On Advertising Payments To Google Says Income Tax Tribunal