Delta Corp, a gaming and casino company, has received another notice regarding a significant tax liability. Here's a breakdown:
Delta Corp's subsidiary, Deltatech Gaming, was informed about a tax liability of Rs 6,384 crore on October 14.
This new tax notification means Delta Corp's total tax shortfall is now Rs 23,206 crore.
In September 2023, the company received tax notices totaling Rs 16,822 crore for the period from July 2017 to March 2022.
The company's stock value has been affected by these developments. On Friday, Delta Corp shares closed 0.85% lower at Rs 140. Over the past year, the stock has decreased by 34.54% and has fallen 35% since the start of this year.
Delta Corp's relative strength index (RSI) is at 26.9, indicating it's in the oversold zone.
The company has been instructed to settle the alleged tax deficit, which includes interest and penalties. If they don't, they might receive a show cause notice under the CGST Act, 2017.
In July, after the GST Council imposed a 28% GST on online gaming and casinos, Delta Corp's stock dropped 23%.
For the September quarter, Delta Corp reported a net profit of Rs 69.44 crore, a slight increase from the same period last year.
1. What is the recent GST shortfall notice amount that Delta Corp received?
Ans. Delta Corp received a GST shortfall notice of Rs 6,384 crore.
2. How has this notice affected Delta Corp's stock performance?
Ans. Following the notice, Delta Corp shares closed 0.85% lower at Rs 140 on a recent Friday.
3. What is the total tax shortfall Delta Corp is facing now?
Ans. With the recent notification, Delta Corp's cumulative tax shortfall has reached Rs 23,206 crore.
4. Did Delta Corp receive any previous tax notices?
Ans. Yes, in September 2023, Delta Corp received tax notices amounting to Rs 16,822 crore for the period from July 2017 to March 2022.
5. How has the stock performed over the past year?
Ans. The stock has lost 34.54% in one year and has fallen 35% since the beginning of the current year.