Mumbai: The service tax department in Mumbai on Monday froze 11 accounts of Kingfisher Airlines Ltd for non-payment of service tax of atleast Rs 70 crore, according to a senior official of the department. The decision to freeze the accounts was taken by the Central Board of Excise and Customs (CBEC), apex body that regulates and administers collection of indirect taxes the official said.
Kingfisher airlines spokesperson declined comment on the issue.
”We had submitted all the details to CBEC and the board decided to freeze the accounts and has now asked for an upfront payment of Rs 70 crore from the airlines,” the official said.
Last week Mint had reported that Kingfisher Airlines owes Rs 810.9 crore, including interest to the service tax authorities. The department has alleged that the firm has failed to pay service tax on import of services such advertisement and sale promotion, business support service, management fee among others.