Friday, August 25, 2023

Cash strapped SpiceJet has not paid PF dues for 18 months: Sources

The beleaguered airline SpiceJet is in the midst of several turbulences. Sources have told CNBC-TV18 that the airline has not deposited Employees' Provident Fund (EPF) for 18 months in a major default and non-compliance of norms. Additionally, the airline has also not deposited Tax Deducted at Source (TDS) for employees since FY23.

However, the airline, in its reply to CNBC-TV18's query, said that it had initiated the process to deposit TDS and is set to clear a "substantial" amount soon.

"The process for depositing TDS has been initiated by the company and Form 16 is being gradually released. There has been certain deferral on discharging of some payments and we hope to deposit a substantial outstanding amount soon," the airline said.

SpiceJet's vendors, too, are subject to frustration as they wait to receive their pending dues. The stress has started to trickle down on employees with many senior staff not getting salaries till the third week of the month.

The problems don't end here with SpiceJet's legal headwinds being a separate chapter altogether.

25/08/2023 Madeeha Mujawar/CNBC TV18

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