The Finance Ministry (FM) is likely to extend the deadline for cash-strapped Kingfisher Airlines ( KFA) to repay its service tax dues.
'We cannot kill KFA. We might give KFA some more time, if it pays some dues by March 31,' official sources said.
KFA, which has massively cut down operations and has asked most staffers to stay at home, has agreed to pay only up Rs10 crore of its Rs76-crore service tax dues this fiscal.
The service tax department has already frozen as many as 40 bank accounts of the debt-ridden KFA for non-payment of dues worth Rs76 crore, which also include arrears and interest. Its IATA accounts too have been frozen.
CBEC Chairman SK Goel had earlier said that the revenue department can take KFA to court over alleged service tax evasion, saying the company has not deposited taxes it collected from travellers.
The income tax department too has frozen the carrier's bank accounts for not depositing tax deducted at source.
The airline has a debt of Rs7,057.08 crore. The financial crunch has hit its operations with dozens of flights being cancelled. Tax authorities have added to its woes by freezing its bank accounts for non-payment of dues.
At 11.12 am, Kingfisher Airlines was trading at Rs16.70, up by 1.21%, with a volume of 8.56 lakh shares on the BSE.
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'We cannot kill KFA. We might give KFA some more time, if it pays some dues by March 31,' official sources said.
KFA, which has massively cut down operations and has asked most staffers to stay at home, has agreed to pay only up Rs10 crore of its Rs76-crore service tax dues this fiscal.
The service tax department has already frozen as many as 40 bank accounts of the debt-ridden KFA for non-payment of dues worth Rs76 crore, which also include arrears and interest. Its IATA accounts too have been frozen.
CBEC Chairman SK Goel had earlier said that the revenue department can take KFA to court over alleged service tax evasion, saying the company has not deposited taxes it collected from travellers.
The income tax department too has frozen the carrier's bank accounts for not depositing tax deducted at source.
The airline has a debt of Rs7,057.08 crore. The financial crunch has hit its operations with dozens of flights being cancelled. Tax authorities have added to its woes by freezing its bank accounts for non-payment of dues.
At 11.12 am, Kingfisher Airlines was trading at Rs16.70, up by 1.21%, with a volume of 8.56 lakh shares on the BSE.
....more info