Cash-strapped Kingfisher fails to deposit staff tax cuts

Stocks

oi-Monika

By Monika Nihalani

Published: Tuesday, December 20, 2011, 16:38 [IST]

Kingfisher Airlines has not deposited income tax deducted at source from its employees' salaries since the financial year started April 1, 2010. The airline is due to pay Rs 153 crore to the government, which it has committed to pay it before March 2012.

The airline mentioned about its income tax dues in its March 2011 annual report. The issue about the non-payment of income tax dues came in limelight when income tax department sent notices to its employees demanding tax deposits.

The government has initiated proceedings to recover the pending tax amount along with the interest levy on delayed payment, S. S. Palanimanickam, Minister of State for Finance said in a written reply to the parliament.

The minister further said that so far Rs 21.04 crore has been collected by the Income Tax department and for for the remaining amount, the airline has filed a commitment letter to pay it by the end of the current fiscal year.

Recently, the airline was stuck in the spiral of service tax dues where Central Board of Excise and Customs had frozen its 10 accounts for defaulting on service tax payments of Rs 70 crore which was due for April-September period.

The debt-ridden is planning to cut its debt by 42% to 37.2 billion rupees through sale and lease back of aircraft and sale of its property in Mumbai.

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