Kingfisher agrees to pay 10 crore in service tax by month end

Posted By: Religare
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Kingfisher agrees to pay 10 crore in service tax
The beleaguered Kingfisher airlines that has cut down its domestic operations massively and closed its international operations completely has said that it will be paying up Rs 10 crore of its 76 crore service tax this fiscal.

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.

Read more about: kingfisher airlines
Story first published: Monday, March 26, 2012, 9:31 [IST]
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