CBEC, CBDT to chart plan to recover Kingfisher Airlines dues
November, 21st 2012
The Central Board of Excise and Customs (CBEC) and the Central Board of Direct Taxes (CBDT) - are preparing a joint strategy to recover over Rs 200 crore dues from the ailing Kingfisher Airlines. "Finance minister P Chidambaram has told CBDT and CBEC to get together and plan out (a strategy), whether it involves talking to regulator or whatever," CBEC chairman Praveen Mahajan said at an industry gathering on Tuesday.
Kingfisher has defaulted on payment of both service tax and direct tax dues and has also failed to act on several notices sent to it by the two tax departments. The finance ministry already froze the airline's bank accounts. "Both CBDT and CBEC have quantified the amount which Kingfisher owes to the government and we will be making out a comprehensive plan to recover tax dues," the CBEC chairman said.
She said the airline had huge dues in service tax and action was initiated without much success. "Whatever is there in service tax act, we have taken all the actions."
Mahajan said in case Kingfisher failed to clear dues, the government may consider starting prosecution proceedings but that may take time.
Reacting on the slow growth in indirect tax collection, the CBEC chairman said by the end of this fiscal, the target of Rs 5.1 lakh crore would be met. Indirect tax collection during April-September rose by 15.6% to Rs 2.17 lakh crore against the annual target of 27%. "Tax collection is doing better. We are hopeful of meeting the target. Service tax collection growth is already more than 35%."