The Tax Department intends to a work out a comprehensive plan to recover tax dues from the suspended Kingfisher Airlines. It is estimated that the airline owes over Rs 200 crore to tax authorities.
The Central Board of Excise and Custom (CBEC) Chairperson Praveen Mahajan said, “As a matter of fact, both Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) have quantified the amount which Kingfisher owe to the Government and we will be making out a comprehensive plan to recover tax dues.” She was talking to reporters on the sidelines of an event organised by industry body CII here.
Mahajan further said, “We have already frozen KFA’s accounts. Whatever is there in Service Tax Act, we have taken all the action because this is in our interest also.” She did not rule out prosecution but clarified that it will take time. “There are different steps you have to take before you prosecute somebody,” she added.
The CBEC chief indicated that the Reveune Department might talk to aviation regulator DGCA as the beleaguered airlines is likely to submit a comprehensive revival plan to DGCA by this month end. “Finance Minister P. Chidambaram has told CBDT and CBEC to get together and plan it out and whether it invloves talking to regulator or whatever,” she said.
Answering questions on revenue collection, Mahajan expressed confidence that the Government will be able to meet indirect tax realisation target of Rs 5.05 lakh crore for 2012-13. The indirect taxes during April-September rose 15.6 per cent to Rs 2.17 lakh crore against the annual target of 27 per cent. “Tax collection is doing better. We are hopeful of meeting the target. Service tax collection growth is already more than 35 per cent,” she said