The amount alleged in the notice is based on the amounts collected by the company as delivery charges from the customers on behalf of the delivery partners during the referred period.

The company stated that it strongly believes that it is not liable to pay any tax since the delivery charge is collected by the company on behalf of the delivery partners.

Further, in view of the contractual terms and conditions mutually agreed upon, the delivery partners have provided the delivery services to the customers and not the company. This is also supported by opinions from the firm’s external legal and tax advisors. The company further added that it will be filing an appropriate response to the notice.

In view of the contractual terms and conditions that were mutually agreed upon, the delivery partners have provided the delivery services to the customers and not the Company for which the company need not pay. This is also supported by opinions from their external legal and tax advisors. The Company will be filing an appropriate response to the show cause notice.

Zomato connects customers, restaurant partners and delivery partners. Customers use Zomato to search and discover restaurants, read and write customer generated reviews and view and upload photos, order food delivery, book a table and make payments while dining-out at restaurants. On the other hand, it provides restaurant partners with industry-specific marketing tools which enable them to engage and acquire customers to grow their business while also providing a reliable and efficient last mile delivery service. The company also operates a one-stop procurement solution, Hyperpure, which supplies high quality ingredients and kitchen products to restaurant partners.

The online food delivery platform reported consolidated net profit of Rs 36 crore in Q2 FY24 as against a net loss of Rs 251 crore posted in Q2 FY23. Revenue from operations jumped 71.46% YoY to Rs 2,848 crore in Q2 FY24.