Service tax demand of Rs 60 crore on DIAL under adjudication: FM Arun Jaitley

NEW DELHI: The demand of Rs 59.91 crore service tax and penalty from Delhi International Airport Pvt Ltd is under adjudication, pending with the tax commissioner, Parliament was informed today.

The show cause notice was served on DIAL in October this year for 2009-10 and 2010-11, demanding service tax of Rs 59.91 crore (including interest and penalty), Finance Minister Arun Jaitley said in a written reply to the Lok Sabha.

"This show cause notice is pending adjudication with the jurisdictional commissioner of service tax," he said.

The notice was issued to the company "for non-payment of service tax under the taxable service category", he added.

The case of alleged evasion against DIAL has been registered by the Directorate General of Central Excise Intelligence (DGCEI).

DIAL, operator of Indira Gandhi International Airport, allegedly evaded service tax on licences fee and development charges collected by it from private entities that are developing five star hotels under the Delhi aerocity project.

It is a joint venture consortium of GMR Group, Airports Authority of India, Fraport and Malaysia Airports Holdings Berhad.