Thursday, April 05, 2012

'Kingfisher Airlines asked to pay Rs60 crore service tax'

Cash-strapped Kingfisher Airlines has been asked to pay Rs60 crore which it owes as service tax, a senior finance ministry official said on Wednesday.
According to SK Goel, chairman, Central Board of Excise and Customs, the airline has been asked to pay the amount and no concessions will be provided to the carrier.
"There is no question of leeway to Kingfisher on payment of service tax," Goel told reporters here.
Earlier, the service tax department -- for the fourth time in four months -- had frozen 40 bank accounts belonging to the airlines as it had failed to meet the February 29 deadline for clearing its dues of Rs40 crore to the department.
Kingfisher Airlines chairman Vijay Mallya on April 2 wrote to the airline's staff informing them that the company would be able to pay their overdue salaries as its bank accounts have been un-frozen following payments worth Rs44 crore to the income-tax department and Rs20 crore as service tax.
04/04/12 IANS/Daily News & Analysis
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