Kingfisher failed to deposit Rs130 crore tax deducted from employees: minister
20 Dec 2011
Cash-strapped carrier Kingfisher Airlines has failed to deposit income tax deducted from employees' salaries. However, it has not defaulted on payment of provident fund dues of its employers, minister of state for finance, S S Palanimanickam, said today.
Kingfisher, according to the minister, has not deposited income tax deducted from the salaries of its employees for the last two financial years.
Kingfisher, which owes about Rs130 crore in employee tax to the government, has committed to pay it by the end of the current financial year ending 31 March 2012, the minister informed Parliament in a written reply.
"Survey has been conducted in case of Kingfisher Airlines, which revealed that the airline had not adhered to TDS provisions," the minister said.
The government, however, is proceeding with recovery measures and would impose penal interest on delayed payment, Palanimanickam said.
Tax authorities had, earlier this month, temporarily frozen 11 bank accounts of Kingfisher Airlines after the airline failed to pay service tax dues.