IATA Chief warns foreign airlines may quit India over taxation issues

06 Jun 2024 CW Team

The chief of IATA issued a warning, expressing that if India does not address concerns regarding taxation, airlines might withdraw from the Indian market. In recent months, the India offices of several global airline groups have received tax evasion notices from the Directorate General of GST Intelligence (DGGI).

The airlines served notices include Emirates, British Airways, Lufthansa Singapore Airlines, Etihad Airways, Thai Airways, Qatar Airways, Saudi Arabia Airlines, and Emirates. Wille Walsh, the director general of IATA, explained that the potential withdrawal could occur gradually as airlines reduce the number of flights due to profitability concerns.

He mentioned this during the Annual General Meeting of IATA in Dubai. IATA, which has 300 airlines as members, highlighted that the notices were related to non-payment of taxes on services such as maintenance, crew payment, and aircraft lease rentals provided by airlines to their Indian entities.

In its representation to the Indian government, IATA argued that the place of service was both the head office and branch office, suggesting airlines should only pay taxes on services taxable in India, like payment for hotel accommodation used by Indian staff outside of India.

A senior airline official explained that when a foreign airline receives permission to operate in India, the Directorate General of Civil Aviation (DGCA) grants permission to the global headquarters, not the local unit. Thus, holding the local unit liable for services is a legal gray area. IATA has petitioned the government to suspend this issue.

Additionally, IATA stated that airlines' branch offices in India do not engage in crucial operations such as contracting for aircraft leases, crew, pilots, fuel, and maintenance. All operations to and from India are decided, controlled, and operated by airlines' head offices. Therefore, it is not legally accurate to attribute strategic and operational risks and functions to branch offices in India.

Infrastructure Energy

22 Oct 2025

KEC Secures Rs 10, 380 Mn Substation Order in Saudi Arabia

KEC International Ltd., a global infrastructure EPC major, and an RPG Group company, has secured a new order worth Rs 10,380 million for the Design, Supply and Installation of a 380 kV GIS Substation in Saudi Arabia.Vimal Kejriwal, MD & CEO, KEC International Ltd., commented, “We are delighted with the successive order wins in our T&D business. In a landmark achievement, we have secured our largest ever substation order. This prestigious order in the Middle East has widened our portfolio and strengthened our presence in the region. With this strategic win, our year-to-date or..

Central Bank of India executes first fully digital SCF deal on PSB Xchange

In a major advancement for India’s banking sector, Central Bank of India (CBI) has successfully completed the country’s first fully digital supply chain finance (SCF) transaction on PSB Xchange—a unified multi-lender platform launched by PSB Alliance. PSB Xchange is designed to connect public and private sector banks, NBFCs, and fintechs with corporates and their channel partners to facilitate supply chain finance and small business loans. The transaction marks the first time a fintech-originated corporate lead has been seamlessly processed through the PSB Xchange ecosystem. The lead fl..

Atlanta Electricals secures Rs 1,835 Mn transformer order from BNC Power

Atlanta Electricals Limited (“Atlanta”) has secured an order worth Rs 1,835 million from BNC Power Projects Ltd for the supply of extra high voltage (EHV) transformers and a bus reactor for its Pugal site. The contract includes a mix of 315 MVA, 400 KV and 100 MVA, 132 KV transformers along with a 400 KV bus reactor. The project scope encompasses design, manufacturing, testing, and supply to the project site. Deliveries will be sequenced following engineering and drawing approvals, offering multi-quarter execution visibility and ensuring a steady production run-rate. The order will be ex..