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Tata Motors receives Rs 400 crore service tax notice

23 Jul 2013 Evaluate

Tata Motors has been issued a tax demand notice of Rs 400 crore by the service tax department for evasion of service tax. The department has issued notice as some of the company’s authorized service stations were not deducting service tax on the bills.

Additionally, the auto financing transaction that took place, Tata Motors did not cut service tax on the fees that it received and thus the department has levied a tax demand of around Rs 400 crore for the period between 2004 and 2011.

Besides, the department has also issued a show cause notice on similar demands rising between 2011-2012 raising demand of Rs 50-60 crore. The company had challenged the order in the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).

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