December 9, 2011

Bank Accounts of Kingfisher, Air India Frozen

The service tax department has frozen the bank accounts of Kingfisher Airlines and Air India for not paying their service tax dues, which shows that the aviation industry is facing a huge loss.

The officials have frozen 11 bank accounts of Vijay Mallya-promoted airline Kingfisher and 10 of state-run Air India. While Air India has pending dues of Rs 170 crore, the Kingfisher has failed to pay 100 crore as service tax liability. The move suggests that the airlines cannot operate any of their bank accounts until they pay the dues to the authorities.

Kingfisher Airlines, which is facing a huge loss in the industry, has not paid salaries to its employees for over 2 months. It suffered the debt stands at over Rs 65 billion.

However, the accounts of Air India are likely to be opened today as they have promised to pay Rs 8 crore by Monday.

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