Club Mahindra, Sterling Resorts get tax notices

Tribune News Service

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Dharamsala, October 10

The Excise and Taxation Department of Kangra has slapped a recovery notice of Rs 1,22,44,515 on Club Mahindra and Rs 1,13,27,782 on Sterling Holidays Resort, Dharamsala. The companies have been accused of evading tax.

Rajiv Sharma, Assistant Excise and Taxation Commissioner, Kangra, said the time-sharing hotel companies charged the membership amount from their members and provided them free accommodation in hotels. In Himachal also, many such companies were running their hotels. However, the companies paid tax in the state where their head office was situated. They did not pay any tax where the hotels were located.

“We have calculated the tax evasion by the two from July to September. It worked out to be about Rs 1.22 crore in case of Club Mahindra and Rs 1.13 crore in case of Sterling Resorts,” he said.

Vivek Mahajan, commissioner, excise and taxation, Kangra, said recovery notices were served today. Anurag, GM of Sterling Holidays Resorts, said he had sent the notice to their corporate head office and it would look into the matter.

Bhanu Mishra, GM of Club Mahindra, said he was yet to receive the notice.