*Coca Cola, Lufthansa slapped notices for service tax evasion*

NEW DELHI: The Government has slapped demand notices amounting to about
Rs 77 crore on nine companies, including soft drinks major Coca Cola
India, German airline Lufthansa and Era Infra Engineering for evading
service tax.

The Anti Evasion Wing of the Commissionerate of Service Tax slapped
demand notices on soft drinks major Coca Cola India and German airline
Lufthansa for service tax evasion, totaling around Rs 15 crore.

Besides Coke and Lufthansa, the wing also issued notices to seven other
companies, including a tax demand for Rs 35 crore on construction
company Era Infra Engineering Ltd. Coca Cola was issued a Rs 8.55 crore
demand notice on non-payment of service tax on the "out of pocket
expenses," the service tax commissionerate said.

Out of pocket expenses include expenses over and above the contract
amount, which is not inclusive of reimbursements for man and machinery
supplied during providing consultancy or other services.

Similarly, German carrier Lufthansa has been issued a Rs 6.16 crore
demand notice for evading service tax on the full value of fare received
by the airline.

According to the service tax commissionerate, Lufthansa had not paid
service tax on the full fare received in the category, "passenger
embarking by air in India for international journey in a class other
than economy class".

An official handling the case said that the total fare for a passenger
to travel by air is divided into about five to ten categories by
airlines where the basic fare is just a small part of the total fare
value. He, however, did not specify the period f or which the tax notice
was slapped. - PTI


<http://www.thehindubusinessline.com/businessline/blnus/28021708.htm>




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