Kingfisher asked to pay Rs. 60 cr service tax

It seems that Kingfisher's ordeal has not any end. Now the airline has been asked to pay Rs. 60 crore as a service tax. Central Board of Excise and Customs has asked the airlines to pay the amount and no concession will be rovided.

S.K. Goel, chairman, Central Board of Excise and Customs said that there is no question of leeway to Kingfisher on payment of service tax. Company will have to pay the said amount.

It is noted that Kingfisher Airlines chairman Vijay Mallya had written earlier to the airline's staff informing them that the company would be able to pay their overdue salaries as its bank accounts have been un-frozen following payments worth Rs.44 crore to the income tax department and Rs.20 crore as service tax. He had written all junior staff will be paid before Easter, April 4. Pilots and engineers will be paid on April 9 and 10.

Due to freeze on the airlines' accounts, it suffers suspension from the International Air Transport Association, Inter airline transaction body ICH and Billing and Settlement plan accounts on March 9 due to non payment of dues.

Airlines blamed the seizure of its bank account in February by the Income Tax Department for curtailing of its international flights plans.

Kingfisher has a debt of Rs.7,057.08 crore. Its net loss widened to Rs.444.27 crore for the quarter ended Dec 31, 2011, from Rs.253.69 crore in the October-December quarter in the last fiscal.

(With inputs from IANS)

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