Emirates settles outstanding Indian tax bill

Emirates has settled a INR1.75billion (USD28.7million) service tax bill with the Directorate General of Service Tax (DGST) after a comprehensive audit of the airline's Indian operations uncovered the deficit, which dates back to 2008. 

"The airline said it was not intentional, but we are verifying the claims. The airline said it follows a global accounting pattern and hence the error happened," the country's service tax commissioner Sushil Solanki was quoted as saying by the Times of India. Mr Solanki now claims Emirates is liable to pay 24% interest on the amount, a claim the airline disputes claiming only 13% interest is applicable. 

ArabianBusiness quotes an Emirates spokesman as saying "There was an inadvertent short payment of tax, and as a law-abiding company, we have voluntarily paid the same."

Source: CH-Aviation