With its stock sliding by more than 20% in the last three trading sessions, Delta Corp, a gaming and hospitality company, has been under pressure in the past six trading sessions. As a result of tax demand notices sent to the company, the delta corp shares came under pressure. Ashish Kacholia, a longtime market investor, sold 1,500,000 shares at 144.65 on Monday evening.
The slip began when the company was levied a tax demand of ₹16,822 crore on Friday by the Directorate General of GST Intelligence asking the company to pay up the alleged liability. Delta Corp has received two tax notices for ₹11,140 crore and ₹5,682 crore against three of its subsidiaries.
Vaibhav Vidwani, Research Analyst at Bonanza Portfolio, said the sum asserted in the DG Notice is calculated using the total gross bet value of all games played at the casinos during the relevant period.
Delta Corp shares faces a challenging road ahead
Meanwhile, the company is exploring legal options. A notification to the exchanges said that “the company has been legally advised that the DG Notice and the tax demand are arbitrary and contrary to law, and it will pursue all legal options available to it to challenge such tax demand and related proceedings.”
In its argument, the company argues that the GST was levied “for the period between July 2017 and March 2022”. However, the 28% GST on gaming and casinos became effective on October 1, 2022.
At 11:00 am Tuesday, the stock is down another 1% and trading at 141 per share. The late billionaire investor Rakesh Jhunjhunwala sold his shares in the company in 2022.
- Market Subdued by Spike in US Bond Yields and Weak Asian Cues, but Autos and Metals Shine
- 3 Best Promising Small Cap and Mid Cap Stocks to Buy in October 2023
- Top Tata Group stocks favoured by analysts: Do you own them?
- Get Ready for iPhone 15 Madness: Vijay Sales Stores Open Bright and as Early as 8am on September 22nd!