Tax Turbulence: Leela Palaces Hotel Operator Faces Rs 4.66 Crore Demand

Schloss Bangalore, which manages Leela Palaces Hotels and Resorts, finds itself in a financial quandary after its subsidiary Tulsi Palace Resort Private Limited (TPRPL) received show cause notices from the Jaipur Central GST department. The notices demand Rs 4.66 crore for alleged non-compliance with tax norms.

TPRPL is accused of improperly adjusting tax liabilities and neglecting IGST payments on imported services under the reverse charge mechanism. These allegations pertain to transactions during the financial years from 2018-19 to 2022-23.

In response, Schloss Bangalore filed a regulatory document affirming its intent to contest the claims. They believe the notices will not significantly impact the company's financial standing or operations, intending to address the adjudicating authority accordingly.

(With inputs from agencies.)