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03-24-2012, 08:41 AM #1
Kingfisher seeks more time to pay tax dues
Cash-strapped Kingfisher Airlines has sought more time from the revenue department to pay its Service Tax dues of about Rs 76 crore (about $15 million), a finance ministry official said on Friday.
"They want some more time...They have made a request," Central Board of Excise and Customs (CBEC) Chairman S K Goel said.
He was replying to a query on whether Kingfisher has sought an extension of March 31 deadline for payment of Service Tax dues.
The service tax department has already frozen as many as 40 bank accounts of the debt-ridden Kingfisher for non-payment of dues worth Rs 76 crore, which also include arrears and interest. Its IATA (International Air Transport Association) accounts too have been frozen.
Goel had last week said that the revenue department can take Kingfisher to Court over alleged Service Tax evasion, saying the company has not deposited taxes it collected from travellers.
The income tax department too has frozen the carrier's bank accounts for not depositing tax deducted at source.
The airline has a debt of Rs 7,057.08 crore. The financial crunch has hit its operations with dozens of flights being cancelled. Tax authorities have added to its woes by freezing its bank accounts for non-payment of dues.