The Vijay Mallya owned airlines has been accused of taking service tax from its customers by selling air tickets and not paying it to the department due to which the service tax department has also blocked over 40 bank accounts for non-payment of dues worth Rs 76 crore of ailing airlines.
The Central Board of Excise and Customs (CBEC) Chairman S K Goel Kingfisher had collected the Service Tax at the rate of 10 per cent from its passengers, but did not pay to the government. He also mentioned that carrier may have to face jail once it is proved that they have evaded tax.
Moreover, the income tax department has also blocked some bank accounts of Kingfisher airlines for non-payment of TDS (tax deducted at source) pending dues.
Meanwhile, officials from Kingfisher airlines said that it had informed CBEC that it would pay the dues by Mar 31.