The services tax department has moved to court to recover its dues of over 50 crore rupees from Kingfisher Airlines. Speaking to reporters in Mumbai on Tuesday, Services Tax Commissioner Sushil Solanki said that his department has filed intervention applications in the Debt Recovery Tribunal and the Karnataka High Court in this regard around three months ago. He said that his department is pleading that whatever money bankers will get from the sale of shares and properties of the airline, services tax department should also be given its dues.A consortium of 17 banks, which had collectively lent over 7,000 crore rupees to the airliner, haveinitiated recovery proceedings under the available legal avenues using the underlining securities which they had. Kingfisher Airlines, which stopped operations in October 2012, allegedly did not deposit the service tax collected on ticket sales with the department, and diverted the money to other purposes.
News On AIR | July 16, 2014 8:59 AM
Services Tax dept moves court for tax recovery from Kingfisher Airlines