The problems of Delta Corp (NS: DELT ) are not coming to an end. After the GST Council decided to put casino gambling under the 28% tax bracket, the company has now been asked to pay taxes on its past operations upwards of a whopping INR 16,822 crore, for the period between July 2017 - March 2022.
This amount includes INR 5,682 crore of GST demand against three of its subsidiaries -- Casino Deltin Denzong, Highstreet Cruises, and Delta Pleasure Cruises. To put it in perspective how giant this amount is, Delta Corp’s total market capitalization is INR 4,698 crore. Not just that, the casino operator’s total revenue for the last 5 financial years *combined* is only INR 3,817.9 crore.
The tax demand will seem insane looking at the last 5-year net profit of Delta Corp, which is at a mere INR 686.65 crore. So essentially, the tax demand is 2,350% more than what the company has made in the last 5 years.
However, the company said in its filing that it will seek all legal remedies to challenge this ‘arbitrary’ tax demand. As the counter is in the F&O space, it will surely be on traders' radar for the next week.
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Tax or weapons to kill business... If this is the way how Govt works, I don't think india will grow on it's own..Like 1
looks like GST department and income tax people have shorted big time on Friday..😃Like 3
Ediot officers running GST departmentLike 2
Govt want to hatch the golden hen in one shotLike 1