Debt-ridden Kingfisher Airlines’ promoter Vijay Mallya today called on CBEC chairman SK Goel and sought de-freezing of the carrier’s bank accounts, a senior Finance Ministry official said. Last week, the Central Board of Excise and Customs (CBEC) had frozen 10 accounts of Kingfisher Airlines for allegedly defaulting on service tax it has collected from passengers.
Goel had said that Kingfisher owed Rs 110 crore towards service tax for April-November period. Mallya has promised to clear November service tax dues within a day, the Finance Ministry official said.
The November service tax dues are estimated at Rs 10-15 crore. Mallya, however, refused to comment on the issue.
Sources said Mallya also assured that the remaining service tax dues would be cleared by March 31, 2012.
Collecting taxes & not remitting to Govt is a very serious offence & attracts penal & prosecution provisions . Infact the monetary limit for prosecution is Rs.10.00 lacs, which means an assessee who has defaulted in payment of dues of even Rs.10.00 lacs can be prosecuted. whereas the default by KFA is in crores of rupees. The assessee is still given a red carpet welcome by the highest officilas & beuracrats. Is it allowed for any assessee to bargain their own time frame for remitting the dues. This is India, whether it is frauds or defaults, they have to be huge, huge enough that even the Govt will come to their rescue. But if the fraud or the default is in pennies, we are harassed by the same officials with notices, penalty and a series of legal proceedings
It is a shocking news that an individual has used the public money up to the level of 100 Crores.
A system should be find out to avoid this situation. I suggest that a separate software should be installed in the service providers’ area to divert the service tax portion of amount to the government account on that day itself. If it is a cheque payment, separate cheque can be issued/received, one for the cost of service and another one for Service Tax involved in that service. The Service Provider will also be relieved from the burden of paying large amount of service tax at one point.