Kingfisher Airlines misses deadline, more accounts frozen

Mumbai: The crisis at Kingfisher Airlines escalated further with the Service Tax department here freezing as many as 40 bank accounts of the already crippled airline for non-payment of dues to the tune of Rs40 crore.
"Over Thursday and Friday, we froze 40 bank accounts of Kingfisher Airlines. They failed to meet the February 29 deadline to make the payments. The airline owes Rs40 crore to the department," Service Tax Commissioner SK Solanki told PTI today.
This is the fourth time in the past four months that the service tax depart has frozen its bank accounts. Late last month, the income tax department had also frozen the bank accounts for not depositing the TDS.
Asked if the airline had communicated with the department, he said, "Not yet as today being a Saturday. We hope to hear from them on Monday."
The move follows as the airline failed to make a Rs20 crore payment by February 29, as promised. However, Kingfisher spokesperson could not be immediately reached for comments.
The airline was given time till February 29 to clear part payment and March 31 to pay off all the arrears to the tune of Rs70 crore.
03/03/12 PTI/Daily News & Analysis

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Categories: Kingfisher Mar 2012