In what can be a major blow for Bharti Airtel , the income tax department has slapped a demand notice of Rs 1067 crore on the telecom major. The notice has reportedly been issued against the company for non-payment of TDS on overseas operations, reports CNBC-TV18's Aakansha Sethi.
Bharti Airtel says, "We are fully compliant on all applicable Income tax provisions. This demand notice, pertaining to applicability of withholding tax on payments made to international operators, is not justified and we will take appropriate legal recourse."
Sources also say that other telecom operators may too face similar I-T notice. The fact that all operators who offer international roaming service pay charge for international termination to foreign operators, meaning that most of them, like Bharti do not deduct TCS as per I-T norms, will also be send similar notices. According to sources CBDT is examining not just telecom sector but all related service related companies.
