Oyo wins against Indian tax authorities
One of India’s top hotel companies, Oyo, has defeated the income tax division in a significant victory. The department had demanded tax from the corporation in the amount of Rs 1,140 crore (about $152 million), but the Delhi High Court has put a stop to that claim. For the business, which has been engaged in a legal conflict with the tax authorities for some years, this is a big relief. Based on an investment made by Oyo‘s parent business Oravel Stays into a subsidiary, the tax authority had used this clause to demand a sizeable sum from the company. The tax demand had been contested by Oyo in a writ case, and the High Court has now ruled in the company’s favor. This choice is a major win for Oyo and a setback for the tax division.
The Indian startup ecosystem has been significantly impacted by the Delhi High Court’s decision on angel tax. It is anticipated that it would provide the ecosystem a much-needed boost and draw in further investments. Industry professionals and business owners who have been asking for a more investor-friendly environment have applauded the decision. Oyo‘s triumph comes at a critical time for the business, which has been dealing with serious difficulties as a result of the pandemic. The decision demonstrates the maturing startup environment in India as well as the government’s openness to the worries of businesspeople and investors.
Oyo and the Indian startup ecosystem as a whole have gained significantly from the Delhi High Court’s decision to stay the tax demand against the company. The decision is anticipated to improve investor confidence and open the door for additional tax system reforms.
About 2 years ago, Oyo partnered with 24+ State Ministries, 50+ hospitals and local authorities and are offering pay per use quarantines, self-isolation facilities at affordable prices to minimise the possibility of infection and maximise social distancing and hygiene. They have also provided 100K room nights in the past four months to 50+ government and private hospitals and 500+ corporates. OYO Life is also working closely with multiple hospitals by extending support in offering long-term stays to nurses and healthcare professionals.
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