Tata’s Docomo payment faces tax scrutiny

The Tata group’s settlement of a dispute with NTT Docomo in 2017, which involved a payment of $1. 27 billion to the Japanese telecom firm, has come under the scrutiny of the Directorate General of GST Intelligence.

Tata Sons is challenging the claim that GST is liable on the payment.

The Tata group says the payment was the outcome of arbitration in a London court and hence GST is not applicable.

Tax authorities say this route could be taken by other firms to avoid paying GST levied on services, and setting a precedent is necessary. Moneycontrol