BAJAJ BROKING
Nazara Technologies' subsidiaries, Openplay Technologies and Halaplay Technologies received show cause notices totaling ₹1,120 crore for GST discrepancies. Collectively, these subsidiaries contributed less than 2% of revenues and 1% of profit of Nazara Technologies in Q1 2024.
Nazara Technologies, a prominent player in online gaming and sports, disclosed that its subsidiaries, Openplay Technologies and Halaplay Technologies, have received show-cause notices from the Director General of GST Intelligence, Kolkata. The notices, issued on July 16, propose a combined liability of ₹1,120 crore under Goods and Services Tax (GST).
According to Nazara's exchange filing, Openplay Technologies faces a proposed liability of ₹845.72 crore, while Halaplay Technologies is confronted with ₹274.21 crore. These claims pertain to the calculation of GST based on pooled sums by players rather than gross gaming revenues, as detailed in the company's response to the notices.
Nazara Technologies stated that both subsidiaries are currently evaluating the show cause notices in collaboration with their legal counsels and tax advisors. They aim to assess the implications thoroughly and determine the appropriate course of action moving forward.
During the quarter ended March 2024, both subsidiaries collectively accounted for less than 2% of Nazara Technologies' total revenues and less than 1% of its profit, underscoring their relatively minor financial contribution to the company's operations.
Explore: Nazara Technologies Ltd Share Price
On Tuesday, Nazara Technologies share price closed at ₹923.20 on the NSE, reflecting a rise of ₹16.65 or 1.84% from the previous day's closing price. The stock remains in focus today after Wednesday’s close on account of Muharram.
The issuance of substantial GST show cause notices to Nazara Technologies' subsidiaries highlights a significant regulatory challenge in the online gaming sector. As the company navigates this issue, its response and strategic decisions will be crucial in mitigating financial impact and maintaining stakeholder confidence amidst ongoing legal proceedings.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For All Disclaimers Click Here: https://bit.ly/3Tcsfuc
Share this article:
Gold Rate Today | 15 January 2025 | Gold Price in India
15 Jan, 2025 | 40 Min. read
Delhi Court Discharges JSW Steel in Corruption Case; HC Clears Monnet Takeover
15 Jan, 2025 | 2 Min. read
IRFC Emerges L1 Bidder to Finance ₹3,167 Crore for Banhardih Coal Block
15 Jan, 2025 | 2 Min. read
Cipla’s Tax Demand Reduced to ₹559.18 Crores After Revision
15 Jan, 2025 | 2 Min. read
Govt Plans 5-6% Hike in Highway Budget for FY26 After FY25 Slump
15 Jan, 2025 | 2 Min. read
Rikhav Securities IPO- Key Objective & Deep Analysis
15 Jan, 2025 | 5 Min. read
HCL Tech expands partnership with Microsoft to transform contact centres
14 Jan, 2025 | 2 Min. read
BEL secures new orders worth Rs 561 crore, boosting FY25 order book
14 Jan, 2025 | 2 Min. read
ITI Ltd secures Rs 64 crore contracts for Wi-Fi and CCTV systems
14 Jan, 2025 | 2 Min. read
JSW Energy secures LoI for 3.6 GW KSK Mahanadi power plant
14 Jan, 2025 | 2 Min. read
Biocon Biologics’ Johor Bahru Facility Receives FDA VAI Classification
13 Jan, 2025 | 2 Min. read
Interarch Secures ₹221 Crore Projects in Semiconductors & Energy Storage
13 Jan, 2025 | 2 Min. read
RBI Launches ULI: Transforming Loan Access
August 27, 2024 | 4 Min. read
Textile Sector in India
September 20, 2024 | 5 Min. read
List of IPOs with DRHPs Filed
November 30, 2023 | 3 Min. read
Aditya Birla Group
September 28, 2023 | 10 Min. read
Bajaj Housing Finance Ltd IPO: Things Smart Investors Need to Know
September 05, 2024 | 4 Min. read
Budget Stock Ideas 2024-2025 | Stocks to Buy Today
July 24, 2024 | 4 Min. read
IPO Eligibility Criteria : Full Details
March 15, 2024 | 6 Min. read
What Is the Lock-In Period in IPOs?
October 18, 2023 | 6 Min. read
Godfrey Phillips Announces 2:1 Bonus Shares
September 16, 2024 | 7 Min. read
Jindal Group- A Comprehensive Analysis
September 27, 2024 | 7 Min. read
Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading