Mumbai tax dept begins impounding KFA aircraft
Posted on: 10:21 AM IST Dec 11, 2012
Mumbai: In another blow to the crisis-hit Kingfisher Airlines, the Mumbai Service Tax has begun impounding the airlines' aircraft. One aircraft has been seized and another is in the process of detention.
The Deputy Commissioner, Service Tax had sent an order a few days back to Kingfisher that the seven aircraft of the airline in Mumbai will be impounded as the airline has defaulted on service tax dues of Rs 200 crore.
Sources say the process of impounding has begun. Kingfisher has been grounded since October 1 and on 19 of the same month, the regulator suspended its flying licence.
The airline has a bank credit of Rs 7,000 crore and the unpaid interest since January 2012 thereon, apart from over Rs 10,000 crore of accumulated losses since the launch in May 2005.
(With additional information from PTI)