“We have frozen 11 accounts of Air India and 10 of Kingfisher Airlines for defaulting on service tax payments over the past five days.
While Air India owes us a staggering Rs 150 crore in dues, the amount from Kingfisher is about Rs 70 crore,” Commissioner of service tax, Zone 1 (Mumbai Commissionerate, Central Board of Excise and Customs) S K Solanki told reporters on Thursday.
Solanki said both the airlines have defaulted on their payment of the levy.He also said actions had to be initiated against the airlines because they failed to clear their dues in the “sufficient time” given to them. An Air India spokesperson acknowledged the development and said it is hopeful of making a part payment to the department on Thursday. A Kingfisher spokesperson said, “No comments.”