Tax authorities have asked the Geneva-based International Air Transport Association to deposit payments from Jet Airways into the service tax department's accounts.
“The department has asked IATA to remit payments received on Jet's account to the service tax department account rather than pay Jet Airways,” Mr S. K. Goel, Chairman, Central Board of Excise and Customs, said.
This follows the airline defaulting on payment of its service tax dues.
“There are two ways of settling the dues — one is to leave the matter as it is, which means on March 15, the department will get the money from IATA. Alternatively, we pay on the 12th or 15th and get the notice withdrawn. We are evaluating both the options,” the airline's Senior Vice-President, Finance, Mr Mahalingam Shivkumar, told Business Line.
The airline has to pay about Rs 35 crore a month as service tax. The services tax dues for February should have been deposited in the account latest by March 6, which the airline failed to do. On Saturday, Mr Shivkumar had told Business Line that the funds would be deposited by March 12.
Meanwhile, the airline, in a statement, denied that any of its accounts have been frozen.
“The service tax department has been in touch with IATA with regard to having the proceeds remitted when the collections are remitted to Jet Airways. Therefore, it is incorrect and misleading to say that the airline's accounts have been frozen. No bank account of Jet Airways has been frozen or attached,” the airline statement adds.