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 Transport

01 Sep 2025

Indian Railways Marks New Milestone with 4.5 km Long ‘Rudrastra’ Trial

Indian Railways has successfully conducted the trial run of Asia’s longest freight train, named ‘Rudrastra’, achieving a new milestone in cargo transportation, as per news reports. The 4.5 km-long train began its trial from Ganjkhwaja railway station in Chandauli, Uttar Pradesh, and travelled to Garhwa in Jharkhand. Covering a distance of 209 km in 5 hours and 10 minutes, it maintained an average speed of 40.5 km per hour. The train was formed by combining three long-haul racks, with ..

UltraTech Launches India’s First On-Site Hybrid RTC Renewable Energy Project

UltraTech Cement has operationalised a 7.5 MW round-the-clock (RTC) hybrid renewable energy project at its Sewagram Cement Works in Gujarat. The first-of-its-kind solution combines bifacial solar modules with trackers, wind energy and battery storage, co-located on-site, to ensure uninterrupted power for cement manufacturing without grid reliance. The project was executed in collaboration with clean energy solutions provider Gentari. Installed as a behind-the-meter system, it is the country..

Patna Metro Trials Successful, Red Line Priority Corridor to Launch This Month

Patna is set to roll out its first metro rail service later this month, with successful trial runs conducted on the Red Line priority corridor, the Patna Metro Rail Corporation announced.On 7 September, a metro train completed a test run between the Patna depot and Bhootnath station. Officials said the trials involved rigorous checks of rolling stock fitness, overhead electrification (OHE), and track alignment and stability to ensure operational safety and performance.The corridor from the New Pataliputra Bus Terminal to Bhoothnath has been designated as the priority stretch and will be the fi..