India's Income Tax department has served a notice to the country's largest mobile services provider by subscribers, Bharti Airtel for taxes amounting to Rs 1,067 crore on the company's overseas operations.

The IT department sent a notice to Airtel for not paying taxes on its payments to international operators from the last four financial years. The department has asked Airtel to pay Rs 1,067.24 crore in taxes under sections 201 consequences of failure to deduct or pay taxes as well as section 195 any person responsible for paying to a non-resident of the Income Tax Act.

The department said that the taxes are due for four financial years. Taxes due for the years include Rs 202.07 crore for 2007-08, Rs 329.913 crore for 2008-09, Rs 313.577 crore for 2009-10 and Rs 221.681 crore for 2010-11.

"Bharti Airtel is fully compliant on all applicable income-tax provisions. This demand notice, pertaining to the applicability of withholding tax on payments made to international operators, is not justified and we will take appropriate legal recourse," a Bharti spokesman said.

The telecom service provider has said that it will take legal action against the notice.