ibnlive » India

Jan 12, 2012 at 10:27pm IST

AI accounts frozen for not paying service tax

New Delhi: The bank accounts of national career Air India were on Thursday frozen for not paying service tax.

The bank accounts were frozen by the Central Board of Excise and Customs for non payment of service tax amounting up to Rs 25 crore.

However, Air India has claimed that negotiations are on to sort out the issue.

AI accounts frozen for not paying service tax

The bank accounts were frozen by the Central Board of Excise and Customs for not paying service tax.

This is the second time in two months that Central Board of Excise and Customs Department has acted against Air India. In December, the department had frozen as many as 11 accounts of Air India, and 10 of the private carrier Kingfisher.

The development came even as bankers reportedly met on Thursday to consider a fresh CDR proposal for the debt-laden national carrier.

"We have frozen 11 bank accounts of Air India as they have not made any payment after the part-payments done last month," a senior official of CBEC said earlier in the day.

"After the Rs 8 crore payment, Air India made last month, nothing has been paid."

(With Additional Inputs from PTI)

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