Delta Corp shares fall after new tax shortfall notice

Delta Corp received an additional tax shortfall notice, amounting to Rs63.84bn (US$766.8m).

India.- Delta Corp shares fell 40 per cent closing close to a three-year low on Monday (October 17) after the casino operator revealed that a subsidiary had received an additional tax shortfall notice amounting to Rs63.84bn (US$766.8m).

The operator had received a prior tax arrears notice for Rs111.40bn (US$1.3bn) last month. It has been affected by the Goods and Services Tax (GST) Council’s decision to impose a 28 per cent indirect tax on the proceeds collected by gaming companies. The tax applies to online gaming, casinos and horse racing.

The company has expressed opposition to the tax claim. It contests the basis of the levy, which is calculated on gross bet value rather than gross gaming revenue. The latest news comes after the company’s third-quarter net revenue announcement last week.