After being informed of the Goods and Services Tax ( GST ) demand of ₹1500 Crores through Form DRC-01 A as per Schedule 2 of the Central Goods and Services Tax (CGST) Act and the failed attempt at mediation, the Tata Sons have approached the Bombay High Court against the demand of tax by Directorate General of GST Intelligence (DGGI).
TATA had settled the amount of 1.27 Million USD after a settlement was reached in a London Court. It was claimed that Goods and Services Tax (GST) was not applicable in the discharge of debt to NTT Docomo as a part of an arbitration case at a foreign court that was paid and closed.
Aggrieved by the demand of tax by DRC-01, the Tata Group approached the Bombay High Court in a writ petition. The writ was filed in November under Article 226 of the Constitution of India. The expected date of hearing is January 9th, 2023.
A Show-Cause-Notice is to be issued following the DRC-01 A Form prior to which the TATA Group has approached the Bombay High Court for quashing the same.
The demand raised as per Schedule 2 of the CGST Act treated the repayment of debt made by TATA Teleservices to NTT Docomo, a Japanese telecom firm as a rendered service.
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