Raids were being conducted today in 40 premises of a leading vegetarian hotel chain here to scrutinise if there had been any tax evasion, highly placed sources in the Commercial Taxes Department said today.
The hotel chain had been under the scanner of tax authorities for the past several months after reports of possible VAT evasion.
The raids that began by 6 am in the 29 hotel branches and 11 other premises were still on, authorities said.
Around six months ago, the hotel, as part of its marketing initiative, launched several new offers like "Combo Packs" with attractive price tags for customers.
This led to a substantial increase in the overall sales volume of the hotel chain.
The authorities are evaluating if the increase in sales volume had reflected in tax remittances.
