No finding received on Rs 30cr tax evasion charge: DLF

Written By Unknown on Rabu, 01 Oktober 2014 | 15.45

DLF said industry players have sought clarification with the tax authorities on the issue of service tax on development rights.

India's largest realty firm DLF  today said it has not received any findings from authorities on alleged service tax evasion of about Rs 30 crore.

The company was replying to the clarification sought by stock exchange NSE on reports that DLF has come under the scanner of central revenue officials for allegedly evading service tax to the tune of about Rs 30 crore.

"DLF and its associates pay a total service tax of more than Rs 500 crore per annum to the government of India and there is no question of evading service tax of Rs 30 crores across multiple years...," DLF said in a filing to the BSE.

"We would also like to point out that we have so far not received any findings or observations from any wing of the Service Tax Department" with reference to this matter, the filing said.

DLF said industry players have sought clarification with the tax authorities on the issue of service tax on development rights.

Since development rights are a part of immovable property and hence it is not subject to service tax, DLF added.

A case against DLF has been registered by the Directorate General of Central Excise Intelligence (DGCEI) for alleged non-payment of service tax over transfer of development rights to other firms, official sources had said.

DLF stock price

On October 01, 2014, at 14:05 hrs DLF was quoting at Rs 151.45, up Rs 0.60, or 0.40 percent. The 52-week high of the share was Rs 242.80 and the 52-week low was Rs 127.35.


The company's trailing 12-month (TTM) EPS was at Rs 2.52 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 60.1. The latest book value of the company is Rs 93.40 per share. At current value, the price-to-book value of the company is 1.62.


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