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Kingfisher crisis: Deadline to pay tax ends today

CNN-IBN
Apr 07, 2012 at 07:27am IST

New Delhi: Saturday is the last day for Kingfisher Chairman Vijay Mallya to pay up at least Rs 9 crores out of the remaining Rs 60 crore service tax dues. Failure to make the payment on time might lead to their accounts being frozen again.

Income Tax authorities defroze the troubled airlines' accounts in February after Mallya paid up dues worth Rs 20 crores.

A section of employees of the crisis-ridden Kingfisher on April 4 received part of their pending salaries after four months.

Kingfisher crisis: Deadline to pay tax ends today

Kingfisher Airlines Chairman Vijay Mallya has to pay up at least Rs 9 crore out of the remaining Rs 60 crore service tax dues by Saturday.

Earlier this week, section of KFA employees, mainly pilots, engineers and cabin crew staff, had threatened to strike work if the management of the private carrier did not pay their dues. They later relented following a late night meeting with Mallya.

The airline had earlier said it could not pay salaries to employees as its bank accounts had been frozen.

Since November, the Service and Income Tax departments have frozen as many as 40 bank accounts of the airline for non-payment of these levies. While it owes Rs 76 crore to the Service Tax department, the airline has to pay nearly Rs 60 crore to the I-T department in TDS arrears.

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