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Kingfisher, AI owe govt Rs 360 cr service tax dues

SBI recently termed the cash-strapped Kingfisher Airlines' a non-performing asset.

New Delhi: Debt-ridden Kingfisher Airlines and Air India owe the government a total of over Rs 360 crore towards service tax dues, a senior Finance Ministry official said Tuesday.
"While the Kingfisher Airlines has paid Rs 20 crore towards service tax for December and some arrears, the airline still owes Rs 60.33 crore," Chairman of Central Board of Excise and Customs (CBEC) S K Goel told reporters here.

The Vijay-Mallya promoted airlines made the Rs 20 crore payment in January, he said adding the carrier has promised to clear all dues by March-end.

Goel also said the state-owned Air India owes Rs 300 crore to the government.

"AI has informed us that they would be clearing the dues once the government infuses capital in the carrier," he added.

The state-owned carrier is seeking an equity infusion of Rs 6,600 crore from government that will enable it to pay interest on fleet acquisition and to meet other expenses.

Last month, the government had informed Parliament that Kingfisher Airlines has an outstanding loan of about Rs 6,419 crore, and the lenders include SBI, IDBI Bank, Punjab National Bank, Bank of India and Bank of Baroda.

SBI recently termed the cash-strapped Kingfisher Airlines' a non-performing asset, while Bank of India said its loan to the carrier was 'sub-standard'.


From Zee News

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