Service tax demand issued to Jet Airways, other 19 cos

The Mumbai Commissionerate of Service Tax Department has passed adjudication orders against 20 high value cases, including Jet Airways and Kingfisher Airlines. CNBC-TV18 exclusively learns that the service tax department has confirmed tax demand amounting to Rs 1,850 crore (excluding penalty) during FY15, this is 45 percent of the total tax demand that was raised by the department earlier, i.e. Rs 4,200 crore.

According to sources, adjudication orders have been passed against Jet Airways, Kingfisher Airlines, Sony and Otis Elevator Company. Also, Tata AIG and Kotak Mahindra Insurance are among the 20 high value cases that the department has taken up on priority.

On Jet Airways, tax demand confirmed amounts to Rs 280 crore, including penalty as against the total tax demand raised earlier totaling Rs 1,700 crore. It is important to note that the Mumbai Commissionerate of Service Tax Department had issued 7 show-cause notices to the airline since 2003. For Kingfisher Airlines, total tax demand amounts to Rs 370 crore, including penalty. Kingfisher Airlines has been issued 3 show-cause notices so far.

In case of Sony, the department has confirmed tax demand of Rs 268 crore. Adjudication order has also been passed against Tata AIG and Kotak Mahindra Insurance confirming tax demands of Rs 248 crore and Rs 152 crore, respectively.