5 June 2008 - Coca-Cola India, along with several other companies have been handed notices by the tax authorities, demanding service tax of Rs 77 crore (about USD 18.2 million), local media report.
The reports add that Coca-Cola India is alleged to have evaded Rs 8.55 crore (approximately USD 2 million) during a 4 year period - between April 2003 and April 2007.
The soft drinks company was reportedly issued a demand notice on non-payment of service tax on “out of pocket expenses”, including expenses over and above the contract amount, which is not inclusive of reimbursements for labour and machinery supplied while providing consultancy or other services.