The Tax Department is working on a comprehensive plan to recover dues from the now suspended Kingfisher Airlines.
It is estimated that the airline owes over Rs 200 crore in taxes.
Praveen Mahajan, Chairman of the Central Board of Excise and Customs (CBEC), said: “Both the Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) have quantified the amount which Kingfisher owes 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 the CII here.
Mahajan further said: “We have already frozen KFA’s accounts. Whatever is there in the Service Tax Act, we have taken all the actions 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 Revenue Department might talk to Directorate-General of Civil Aviation as the beleaguered airline is likely to submit a comprehensive revival plan to the regulator by this month end. “Finance Minister P. Chidambaram has told CBDT and CBEC to get together and plan, whether it involves talking to the regulator or whatever,” she said.
To questions on revenue collection, Mahajan expressed confidence that the Government would be able to meet the indirect tax target of Rs 5.05 lakh crore for 2012-13. Indirect tax collections 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.