India's tax department has ordered the food delivery platform Zomato to pay 8.04 billion rupees ($94.8 million) in taxes and fines for non-payment of certain taxes from 2019 to 2022. This amount includes 4.02 billion rupees in outstanding taxes and an equivalent amount as a penalty, which significantly exceeds the company's profit for the latest reported quarter. Zomato plans to challenge the order, asserting a robust case supported by external legal and tax advisors. This development adds to Zomato's ongoing challenges, including antitrust scrutiny for potential competition law breaches. Despite these setbacks, Zomato’s shares have surged this year, driven by increased food delivery demand and the rapid growth of quick-commerce services. Last December, Zomato argued it should not be liable for the tax since the delivery charge is collected on behalf of the delivery partners, who provide the services directly to customers.
