Mumbai Tax Department freezes few accounts of Kingfisher Airlines and Air India

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Kingfisher Airlines and Air India Accounts Frozen
Several accounts of Kingfisher Airlines and Air India have been frozen by Mumbai Service Tax Department over non payment of dues. Kingfisher Airlines owes Rs 70 Crore whereas Air India owes 100 crore to the deparment.

This is the second time Kinfisher Airlines Bank Account were frozed in two months, before it was for two days in the month of November. Account was released after Kingfisher officials assured about the payment of the dues.

However, Kingfisher Airlines and Air India have collected service tax from its customers for domestic and International sector but defaulted in payment to Mumbai Tax Department.

On Dec 1 Mumbai Airport authorities (MIAL) had threatened Kinglisher Airlines of cash-and-carry mode from Dec 3 if it fails to pay up around Rs 90 crore dues. On the other hand state-run Airport authority had also threatened airlines of cash-and-carry mode .

Kingfisher approximatly owes Rs 7,060 crore to 14 banks. Now it is struggling to meet its working capital needs, and had sought relief from lenders.

Kingfisher reported net loss of Rs 469 crore for the september quarter, though there was a 10.9 % rise in the revenues of Rs 1528 crore, due to hike in fuel prices and inability to hike fares due to competition, which has landed kingfisher in trouble.

Air India is another Airline company accompanying Kingfisher in trouble.

The total debt of Air India is Rs 43,777 approximatley including Aircraft loan and working capital loan, wherein, aircraft loan is Rs 21,412.06 crore and working capital loan is Rs 21,511.10 crore (figures as per last month).

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