Kingfisher asked to pay Rs 60 cr service tax dues

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Kingfisher Airlines
New Delhi, April 4: Central Board of Excise and Customs has asked the debt-ridden Kingfisher Airlines to clear service tax dues of Rs 60 crore at the earliest, said a senior finance ministry official on Wednesday, Apr 4.

The Chairman of Central Board of Excise and Customs, SK Goel said that the carrier has been asked to pay the amount and also made it clear that no concessions will be provided to the airlines.

"There is no question of leeway to Kingfisher on payment of service tax," added Goel.

Earlier, on Apr 2, beleaguered air carrier Kingfisher Airlines Chairman Vijay Mallya had 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 Rs 44 crore to the income tax department and Rs 20 crore as service tax.

The 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 India's second largest private airlines has been suffering from massive financial crisis since last year with a total debt of Rs 7,057 crore. The carrier's management has repeatedly assured that it is in talks with potential investors, but nothing has materialised to date.

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