The beleaguered Kingfisher Airlines is likely to pay only up to Rs 10 crore of its Rs 76-crore service tax dues this fiscal as it is going through a cash-crunch and needs some more time to pay up. It has massively cut down operations including completely winding up of international services and facing stern warnings from the regulator DGCA and Aviation Ministry for failing to come up a with workable flight schedule and revival plan.
Service Tax department has frozen as many as 40 Kingfisher's bank accounts since October due to the non-payment. The department will de-freeze some accounts to facilitate the payment of the remaining dues. On the penal action which the department threatened early last week, the CBEC chief pointed to a legal provision wherein a defaulter can take up to 12 months to pay the dues.
The Service Tax department will exercise its legal options, once the deadline crossed. The airline, which has a debt of Rs 7,000 crore and an accumulated loss of over Rs 6,000 crore, has been operating only 16 of its 64 aircraft since last month and has quit Kolkata and Hyderabad routes completely.
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