NEW DELHI: The Central Board of Excise and Customs (CBEC) has frozen the bank accounts of Kingfisher Airlines for its failure to pay service tax arrears.
The airline is already facing attachment of its accounts with the Central Board of Direct Taxes.
“They have been paying `1 crore a day, but now there are some interruptions. We have frozen their accounts 2-3 days ago by issuing a letter to the bank,” CBEC Chairman S K Goel told reporters.
While at a press briefing on January 10, Goel had stated that he had been assured by the airlines of tax payments in installments. The Kingfisher airlines and the Air India have to pay `360 crore as service tax. Of the total `60 crore it owes to the government, the Kingfisher had paid `20 crore service tax in December, including the arrears.
“The company has promised the Finance Ministry officials during the recent meetings that it would pay up all its service tax dues by March end,” Goel said in January.
Kingfisher was earlier pulled up for liabilities to the tune of `153.82 crore with the Tax Department for the fiscal 2010-12.
Kingfisher had not paid income tax to the government while still deducting it from the employee salaries for at least the last two years.
A survey had been conducted on the Kingfisher which revealed that the carrier had not adhered to the TDS provisions.
A preliminary examination has revealed pending amounts of `53.82 crore for 2010-11 and `100 crore for 2011-12. Employees with the carrier have not been given their TDS certificates for long.