Non-payment of service tax on the international travel in any class other than the economy class – Board wants report
The Delhi Service Tax Commissionerate has reported to the Board that one of the major international airlines has deposited a service tax amount of Rs. 94.3 Crore pursuant to the investigations caused by the Commissionerate.
Service Tax levy has been made applicable, w.e.f . 1.5.2006, on international travel, other than by the economy class, by a passenger embarking from India . However, this airline has not paid any service tax on such services provided by it.
Board feels that such non-compliance may also exist in the case of some of the other airlines engaged in international travel of passenger by premium class. This issue has thus significant revenue implication and non compliance by such large carrier is a matter of serious concern.
So Board wants necessary action to be taken by the field formations on priority, to ensure timely recovery of service tax in all such cases.
Outcome of the action is to be communicated to DG (Service Tax) also, to facilitate preparation of a consolidated report to the Board.
And the DGST has already written to all Chief Commissioners to furnish their reports by 08.02.2008
CBEC's F.No . 4/Com (ST)/2008 Dated : January 7, 2008 and DGST's F.No . V/ DGST /( 21)01/IT/2008/284 Dated : January 21, 2008