Despite clearing the Rs 15 crore service tax dues in April, 2012, the beleaguered Kingfisher Airlines is yet to clear Rs 54 crore service tax arrears. The company has been paying its monthly dues every month along with its arrears. Kingfisher was indebted to the tune of Rs 76 crore of service tax dues in 2011-12, which it has already collected from passengers.
Owing to recent unfavorable circumstances, the debt strapped civil aviation player has recently had to cut down operations on a large scale including completely wrapping up international services. From nearly a year Kingfisher has been struggling for survival and has been defaulting on payments against lease rentals, oil purchases, landing and parking fee and even service tax and TDS.