The Service Tax Department has frozen the accounts of Air India and Kingfisher Airlines for defaulting Rs.220 crore on service tax Service Tax Commissioner, Mumbai, S. K. Solanki told this correspondent that the department had frozen ten accounts of Air India on Monday for defaulting on payments of Rs.150 crore. It froze 11 accounts of Kingfisher Airlines last week for non-payment of Rs.70 crore.
The amount has been calculated for the period April to August, 2011.
When contacted, Kingfisher spokesperson said the company did not wish to comment. A few days ago, the Mumbai International Airport had sent a notice to the airline to clear its dues to continue using the airport facilities.
Air India and Kingfisher Airlines have recently run into financial troubles.