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Kingfisher, AI have Rs 360-cr service tax dues

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Press Trust Of India New Delhi
Last Updated : Jan 21 2013 | 1:39 AM IST

Debt-ridden Kingfisher Airlines and Air India (AI) owe the government a total of Rs 360 crore towards service tax dues, a senior finance ministry official said on Tuesday.

“While Kingfisher Airlines has paid Rs 20 crore towards service tax for December and some arrears, the airline still owes Rs 60.33 crore,” Central Board of Excise and Customs Chairman S K Goel said.

The Vijay Mallya-promoted airline made the Rs 20 crore payment in January, he said, adding the carrier has promised to clear all dues by March-end. He said state-owned AI owes Rs 300 crore to the government.

“AI has informed they would clear the dues once the government infuses capital,” he said. The airline is seeking an equity infusion of Rs 6,600 crore that will enable it to pay interest on fleet acquisition and meet other expenses.

Last month, the government had informed Parliament that Kingfisher Airlines has an outstanding loan of 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.

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First Published: Jan 11 2012 | 12:17 AM IST

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