Nazara Technologies: Subsidiary received tax notice of Rs 1120 crore, keep an eye on the stock
Two subsidiaries of Nazara Technologies have received a total tax notice of more than Rs 1100 crore. The company has informed this to the stock market. The company has said that its two subsidiaries have received notices on the issue of GST on the gaming industry, in which a total liability of Rs 1120 crore has been fixed. According to the company, as per the results of March 2024, these two subsidiaries have a share of less than 2 percent in the company’s total income and less than one percent in profit. The company said that both the companies are taking advice on this notice and will decide on further action soon. The stock of Nazara Technologies closed at Rs 923 with a decline of nearly 2 per cent in the last trading session.
What information has the company given?
The company said in the information sent to the stock market that its subsidiary Openplay Technologies has received a show cause notice from DG GST Intelligence Kolkata on July 16 under Section 74(1) of the GST Act 2017 and State SGST Act 2017. In which the liability of Rs 875.72 crore has been stated.
Apart from this, Halaplay Technologies has been given notice of tax liability of Rs 274.21 crore under CGST Act 2017. These notices have been given to both the companies for the period between 2017-18 to 2022-23.
How has the stock performed?
In the last trading session, the stock of Nazara Technologies closed at the level of 922 with a gain of 1.5 percent. The 3 month return of the stock has been 45 percent while the one year return is 38 percent, the stock has increased by 7 percent in a month. Next week is important for stocks as the Supreme Court may hear the side of online gaming companies on GST next week.
