The government on Tuesday said it has issued notices to operators of Delhi and Mumbai airports to recover service tax dues amounting to about Rs 200 crore. "(A)Showcause-cum-demand notice has been issued to Mumbai International Airport Pvt Ltd...demanding service tax of Rs 54.68 crore for the period April 2009 to January 2011. Show cause-cum-demand notice has been issued to Delhi International Airport Ltd ... demanding service tax of Rs 145.47 crore (for the same period)," Minister of State for Finance S S Palanimanickam said in a written reply in the Rajya Sabha. The notices were issued after the government concluded that service tax has to be levied on development fees charged by Delhi and Mumbai airport operators. The Revenue Department, he said, had in July 2011 clarified that the "development fee is chargeable to service tax under the broad heading Airport Service".
Source : Economic Times
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