India's Kingfisher airline penalised for tax dues

Kingfisher counter Kingfisher has never made a profit since its 2005 launch

Related Stories

Tax authorities in India have initiated steps to penalise and charge Kingfisher airline for its failure to pay $49m (£31m) in taxes, the government says.

The airline deducted taxes from salaries, but did not deposit it with the government, junior Finance Minister SS Palanimanickam told the parliament.

The cash-strapped airline owes money to airports, tax authorities, lenders and its own staff.

An airline spokesperson refused to respond to the report.

"[A] survey... was conducted at the business premises of the company and subsequently a tax demand (including interest) amounting to 3.72bn rupees ($68m; £43m) was raised," Press Trust of India quoted the minister as saying in a statement in the parliament.

"Action for recovery has been undertaken and a total of 1.03bn rupees ($18.8m, £12m) has already been recovered," he said.

The airline has been struggling to maintain its day-to-day operations in recent months after banks refused to lend more money to the debt-laden carrier.

The airline has never made a profit since its launch in 2005.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More India stories

RSS

Features

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.