MakeMyTrip under scanner for Rs 75 crore alleged tax evasion

Online travel company MakeMyTrip is under probe for alleged service tax evasion of Rs 75 crore. The Directorate General of Central Excise Intelligence (DGCEI) has registered a case against the firm for allegedly not depositing service tax which it had collected from the customers, sources said. Following the probe, one of the company’s senior executives was arrested by the DGCEI officials and released on bail last week, sources added. In reply to the query, a spokesperson said the service tax case is an industry issue and it will be contesting the case with appropriate authorities. “At MakeMyTrip, we strongly believe in an ethical, transparent and compliant corporate culture and abide by all laws and regulations of the country. The service tax case in question is potentially an industry issue that can impact all Online Travel Agents (OTAs). “We have a strong case as advised by our tax advisors and therefore will be contesting the matter with the appropriate authorities. We are extending our full cooperation to the authorities in the investigation. Further, the company official who was detained by the authorities has already been released,” the spokesperson said.