Air India piles up Rs 454 crore service tax dues

New Delhi: Five months after its accounts were frozen for non-payment of taxes and duties, crisis-ridden Air India has piled up about Rs 454 crore of dues but has promised to clear it as soon as it gets capital infusion from the government.
"The total service tax dues of Air India is Rs 395 crore. We will recover interest at the rate of 15 per cent. Once the capital infusion happens, the company will repay the dues," official sources said.
Taking into account the 15 per cent interest, the total tax dues of the company will come to around Rs 454 crore.
Government last month approved a financial restructuring plan for Air India with a Rs 30,000 crore equity infusion over a nine-year period. The airline intends to clear the dues as soon as the government releases funds to it, the sources said.
20/05/12 Economic Times

To Read the News in full at Source, Click the Headline

Categories: Air India May 2012