Kingfisher Airlines owes Rs.132.78 crore in TDS dues

December 20th, 2011 - 8:09 pm ICT by IANS  

New Delhi, Dec 20 (IANS) The government Tuesday informed parliament that cash-strapped Kingfisher Airlines has not deposited with the exchequer Rs.132.78 crore which the airline deducted from the salaries of its employees as income tax in the last two fiscals.

“Survey has been conducted in case of Kingfisher Airlines, which revealed that the airline had not adhered to TDS (tax deducted at source) provisions. The amount of liabilities quantified on preliminary examination is Rs.53.82 crore in 2010-11, Rs.100 crore in 2011-12,” S.S. Palanimanickam, minister of state for finance informed the Rajya Sabha.

According to Palanimanickam, out of 153.82 crore in TDS dues, Rs.21.04 crore were collected and the rest of the liabilities are expected to be paid by the end of 2011-12.

“The airlines has filed a commitment letter and has undertaken to pay the balance TDS liabilities by the end of the current financial year,” the minister said.

The minister added that proceedings have been initiated for recovery of default amount for 2010-11.

“Proceedings have been initiated for 2010-11 to crystallise the default amount, levy interest on delayed payment and take further statutory actions,” the minister added.

State-run banks have lent Rs.6,901.86 crore to the airline, whose total debt stands at Rs.7,000 crore.

The airline has not posted any profit since its launch five years ago and reported a net loss of Rs.1,027 crore last fiscal and Rs.468.66 crore in the last quarter.

Some of the airlines’ bank accounts were freezed Dec 8 after the Mumbai service tax department had seized them for non-payment of dues.

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