The Directorate General of GST Intelligence (DGGI) has questioned executives from at least 10 leading foreign airlines during the last one month in an ongoing investigation related to alleged tax evasion, running into hundreds of crores of rupees, by these carriers for booking expenditure related to their India operations with their overseas head offices.
Finance Managers of half-a-dozen airlines, including British Airways, Etihad, Thai Airways and Qatar Airways, have recorded their statements with DGGI. These executives are responsible for accounting and tax compliance issues related to their operations in India.
This is for the first time that Indian authorities have asked foreign airlines to account for their India-related expenditure and pay tax for services rendered here under the new GST regime. This expenditure runs into millions of dollars for foreign carriers and shipping liners engaged in business activities in India.
The new GST regime treats Indian subsidiaries of any foreign company as two separate entities, and the former needs to comply with the tax rules applicable to any other country in India.
Read more at : The Times of India
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