The debt ridden airline owes Rs76 crore in service tax arrears which it has collected from passengers and has been given warings from both DGCA and airline ministry in this regard. Kingfisher was earlier asked to come upwith a revival plan and flight schedule but it had failed.
According to the sources, the Vijay Mallya-promoted airline will pay only Rs 5 to 10 crore of its dues before the end of the fiscal but the private carrier can relax and not worry about any immediate penal action.
Earlier, since October, the Service Tax department had frozen Kingfisher's bank accounts due to the non-payment. As of now it has frozen as many as 40 accounts.