Dubai: Global airlines group IATA on Tuesday raised concerns about an Indian agency investigating some foreign carriers over certain allegations related to the Goods and Services Tax (GST).
The Directorate General of GST Intelligence (DGGI) has started investigation against some foreign airlines operating in India.
At a briefing here, IATA country director for India Amitabh Khosla said that at present, 10 foreign airlines have been taken up for investigation and the move is "unprecedented".
He informed that the International Air Transport Association (IATA) has submitted a detailed representation to the Government of India on this issue.
Airlines are receiving notices from October 2023.Xie Jingquan, Regional Vice President, North Asia and Asia Pacific (Ad Interim) also mentioned about the GST issue in the briefing on the sidelines of IATA's Annual General Meeting.
The Authority is interpreting the application of local GST law in respect of alleged import of service from the head office of a foreign airline in respect of air services provided to a branch office in India.
Costs include costs related to aircraft rental, crew and pilots and maintenance costs. Such costs would need to be cross-charged at the Indian branch so as to be made liable to GST under reverse charge.
“Airline branch offices in India play no role in critical functions such as contracts for leased aircraft, crew and pilots, fuel and maintenance costs.The group said, "All operations to and from India are decided, controlled and conducted by the airlines' head offices and it is legally correct to hold the branch offices in India responsible for any strategic and/or operational risks and actions." Not there."
India is one of the fastest growing civil aviation markets in the world. IATA is a group of more than 330 airlines that account for more than 80 percent of global air traffic.
The Directorate General of GST Intelligence (DGGI) has started investigation against some foreign airlines operating in India.
At a briefing here, IATA country director for India Amitabh Khosla said that at present, 10 foreign airlines have been taken up for investigation and the move is "unprecedented".
He informed that the International Air Transport Association (IATA) has submitted a detailed representation to the Government of India on this issue.
Airlines are receiving notices from October 2023.Xie Jingquan, Regional Vice President, North Asia and Asia Pacific (Ad Interim) also mentioned about the GST issue in the briefing on the sidelines of IATA's Annual General Meeting.
The Authority is interpreting the application of local GST law in respect of alleged import of service from the head office of a foreign airline in respect of air services provided to a branch office in India.
Costs include costs related to aircraft rental, crew and pilots and maintenance costs. Such costs would need to be cross-charged at the Indian branch so as to be made liable to GST under reverse charge.
“Airline branch offices in India play no role in critical functions such as contracts for leased aircraft, crew and pilots, fuel and maintenance costs.The group said, "All operations to and from India are decided, controlled and conducted by the airlines' head offices and it is legally correct to hold the branch offices in India responsible for any strategic and/or operational risks and actions." Not there."
India is one of the fastest growing civil aviation markets in the world. IATA is a group of more than 330 airlines that account for more than 80 percent of global air traffic.
