Minister targets Kingfisher Airlines for violating tax rules

New Delhi, Dec 20: Junior Finance Minister SS Palanimanickam on Tuesday, Dec 20 said in Parliament that the cash-starved Kingfisher Airlines has not deposited most of the income tax it deducted from the salaries of its employees for the last two fiscal years.

Palanimanickam stated that the beleaguered Kingfisher Airlines has a pending amount of Rs 130 crore tax deducted at source (TDS) to be deposited with the government and has committed to pay it by the end of the current financial year to March 2012.

"A Survey has been conducted in case of Kingfisher Airlines, which revealed that the airline had not adhered to TDS provisions," said the minister.

Meanwhile, the cash-strapped airlines has been asked by lenders to clear its pending dues within a fortnight before they can release anymore money as sought by them. Sources said that, some banks in the consortium are unwilling to extend any loan facility till the dues are settled.

Kingfisher Airlines has been facing mounting losses since few months. Earlier, the airlines had also received notices from airports, lenders and fuel suppliers for defaulting payments and have stopped extending credit to the airline.

OneIndia News