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Originally Posted by PVDtoDEL
Originally Posted by
Yaatri
I am not a lawyer, nor an aviation expert. Please explain why a fee would draw attention of tax authorities. It's not like it's the first time a fee has been charged by an airline.
Fees are exempt from some taxes which apply to the base fare. Not sure about the specifics though, so I can't comment on this particular case. I'd think that 9W's legal department would know what they're doing though...
I see your point. Fees, if no taxed at source, would be counted as income and subject to income tax at the end.How fees are to be taxed depends on accointing practices allowed under the law, which is a matter between the taxing authority and the airline. Consumer is not in the loop.