RIL's Charter Flights Row in SC

Tax dept says Reliance Commercial Dealers is effectively renting aircraft to RIL, which should attract higher tax

- Krishna Yadav

The Supreme Court on Tuesday agreed to hear a plea by the tax department seeking to impose a higher service tax on charter flight services used by Reliance Industries Ltd (RIL) executives through its subsidiary, Reliance Commercial Dealers Ltd (RCDL).

RCDL operates charter flights for RIL's nominees, transporting passengers on demand based on the company's requirements.

A bench of justices Manoj Misra and Ujjal Bhuyan issued notices to the Reliance subsidiary and observed that it will decide the larger legal issue of classification of such services.

The court directed both parties to file written submissions within two weeks.