Yatra Online Limited has achieved a significant legal victory with the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Chandigarh, passing a favorable order that sets aside substantial tax demands and penalties. The tribunal's decision provides comprehensive relief to the online travel company and its subsidiary from long-standing tax litigation matters.

Major Financial Relief Granted

The CESTAT order has resulted in substantial financial relief for both Yatra Online Limited and its subsidiary TSI Yatra Pvt. Ltd. The tribunal has set aside significant tax and penalty demands across multiple issues.

Key Issues Resolved in Company's Favor

The tribunal addressed several critical tax matters that had been under dispute:

CRS/GDS Incentives: The CESTAT held that incentives received from Computer Reservation System (CRS) companies are not subject to service tax under 'Business Auxiliary Service' or 'Intermediary Service' categories.

Fuel Surcharge Treatment: The tribunal ruled that fuel surcharge should not be included in the "basic fare" for calculating service tax under Rule 6(7) of the Service Tax Rules, 1994.

Abatement Benefits: The demand relating to the denial of abatement benefits under Notification Nos. 1/2006-ST and 26/2012-ST was set aside. The tribunal accepted that the proportional reversal of CENVAT credit by the company amounted to not availing the credit.

Additional Relief Provided

The tribunal also set aside demands related to:

• Short payment of service tax
• Reverse charge mechanism (RCM) on foreign expenditure
• CENVAT credit on gateway charges

All three appeals filed by the companies have been allowed in their entirety, with the impugned orders passed by lower authorities being set aside completely.

Regulatory Compliance and Impact

The company has disclosed this development under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. According to the disclosure, the company anticipates no material adverse financial impact from this order. The favorable ruling provides significant relief regarding long-standing tax litigations that had been pending against the travel services company.

Yatra Online Limited has published newspaper advertisements confirming the dispatch of its postal ballot notice on March 23, 2026, in compliance with regulatory requirements. The company seeks shareholder approval for the remuneration of Mr. Dhruv Shringi, Whole-Time Director, following his resignation as Chief Executive Officer on November 24, 2025.

Regulatory Compliance and Publication

Pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company published newspaper advertisements in Financial Express (All Editions - English) and Jansatta (Hindi Editions) on March 24, 2026. The advertisements confirm the dispatch of the postal ballot notice on March 23, 2026.

Postal Ballot Details

The Board of Directors approved the postal ballot notice through a resolution passed by circulation on March 16, 2026. The voting will be conducted exclusively through electronic mode, with no physical postal ballot forms being distributed to shareholders.

Proposed Remuneration Structure

The special resolution seeks approval for Mr. Dhruv Shringi's remuneration from April 01, 2026 to December 07, 2026. The compensation package includes multiple components designed to align with industry standards and company policies.

Monthly Compensation

Additional Benefits

The remuneration package extends beyond the basic salary to include comprehensive benefits:

• Insurance and Security Benefits: Gratuity, Mediclaim, and Term Life Insurance as per company rules
• Equity Participation: Employee Stock Option Scheme (ESOP), Restricted Stock Units (RSUs), and Performance Stock Units (PSUs) valued per Income-tax Act provisions
• Retirement Benefits: Provident Fund contributions according to company policies
• Transportation: Company-provided car
• Leave Benefits: Encashment of unavailed leaves as per company rules

Notably, Mr. Shringi will not receive sitting fees for attending Board or Committee meetings during his tenure as Whole-Time Director.

Background and Context

Mr. Dhruv Shringi was originally appointed as Whole-Time Director for a five-year term from December 08, 2021 to December 07, 2026. Shareholders had previously approved his remuneration at an Extra-Ordinary General Meeting held on March 22, 2023, covering the period from April 1, 2023 to March 31, 2026.

Following his resignation as CEO on November 24, 2025, the Board revised his remuneration structure at their meeting held on the same date, based on recommendations from the Nomination and Remuneration Committee.

Voting Process and Service Providers

The company has appointed NSDL as the e-voting service provider and Chandrasekaran Associates as the Scrutinizer for the postal ballot process. The notice complies with Sections 108 and 110 of the Companies Act, 2013, and Regulation 44 of the SEBI Listing Regulations.

Shareholders whose email addresses are registered with the company, depository participants, or the Registrar and Share Transfer Agent as of the cut-off date will receive the notice electronically. The voting rights will be proportionate to shareholders' equity stake as of March 18, 2026.

The resolution, if passed by the requisite majority, will be deemed effective from April 23, 2026, the last date of the e-voting period.