Government de-freezes bank accounts of Kingfisher and Air India

The government has de-freezed the bank accounts of debt-ridden Kingfisher Airlines and Air India after the two air carriers made part-payment of their service tax dues.
"As they (Kingfisher and Air India) have made part-payments of service tax dues, the department has lifted the freeze on their accounts," a top Finance Ministry official told PTI.
The accounts were de-freezed yesterday, sources said. Kingfisher has given a written "undertaking" that it will pay the remaining dues toward service tax by March 31, 2012.
The Vijay Mallya-promoted airline had paid about Rs 9 crore toward its service tax dues for the month of November, while the state-owned carrier paid Rs 8 crore.
Earlier this month, the Central Board of Excise and Customs (CBEC) had frozen 10 accounts of Kingfisher Airlines and 11 of Air India for allegedly defaulting on service tax payments, despite collecting the same from passengers.
14/12/11 PTI/Economic Times

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Categories: Air India Dec 2011, Kingfisher Dec 2011