Such was the financial mismanagement at the cash-strapped Kingfisher
Airlines that it did not deposit tax deducted from employees’ salaries
— amounting to Rs 422 crore over the last couple of years — with the
Income Tax authorities. The company failed to meet its obligations
amounting to Rs 15 crore towards employees’ provident fund, service
tax and fringe benefit dues too.
While the company’s March 2011 annual report acknowledges the dues
owned by it to the tax department, its employees came to know of this
only recently when the income tax department sent them notices raising
tax demands, in certain cases up to Rs 80 lakh, after they filed for a
tax refund.
A Delhi-based aircraft maintenance engineer employed with Kingfisher
Airlines till 2009 received a shock when he came to know that the
airline did not deposit TDS. “Now I get an intimation from the income
tax department... through which an amount of Rs 2,88,480 has been
demanded from me,” he wrote in a complaint to the IT authorities,
after he failed to get a response from the airline’s personnel
department.
Confirming the receipt of complaints from Kingfisher employees, top IT
officials said the airline would soon be served a notice. “We suspect
there may be several such cases,” said a Bangalore-based IT official,
adding that apart from penalties, the defaulter could also be jailed.
An airline spokesperson declined to comment, and a questionnaire sent
by The Indian Express remained unanswered for two weeks.
According to the company’s annual report 2010-11, amounts payable from
2008-09 onwards in respect of tax deducted at source amounted to Rs
422.97 crore. Besides TDS, provident fund of Rs 43.80 lakh, service
tax of Rs 10.47 crore and fringe benefit tax of Rs 4.50 crore “were
outstanding for a period of more than six months”.
Many employees belonging to the airline have correspondingly received
notices. The company allegedly refused to even give them Form 16 when
asked. A source close to a foreign pilot currently employed with the
airline said the commander was rebuffed when he asked the HR about
Form 16. “He was told there is no such thing as a Form 16 under Indian
taxation system,” said the source
Airlines that it did not deposit tax deducted from employees’ salaries
— amounting to Rs 422 crore over the last couple of years — with the
Income Tax authorities. The company failed to meet its obligations
amounting to Rs 15 crore towards employees’ provident fund, service
tax and fringe benefit dues too.
While the company’s March 2011 annual report acknowledges the dues
owned by it to the tax department, its employees came to know of this
only recently when the income tax department sent them notices raising
tax demands, in certain cases up to Rs 80 lakh, after they filed for a
tax refund.
A Delhi-based aircraft maintenance engineer employed with Kingfisher
Airlines till 2009 received a shock when he came to know that the
airline did not deposit TDS. “Now I get an intimation from the income
tax department... through which an amount of Rs 2,88,480 has been
demanded from me,” he wrote in a complaint to the IT authorities,
after he failed to get a response from the airline’s personnel
department.
Confirming the receipt of complaints from Kingfisher employees, top IT
officials said the airline would soon be served a notice. “We suspect
there may be several such cases,” said a Bangalore-based IT official,
adding that apart from penalties, the defaulter could also be jailed.
An airline spokesperson declined to comment, and a questionnaire sent
by The Indian Express remained unanswered for two weeks.
According to the company’s annual report 2010-11, amounts payable from
2008-09 onwards in respect of tax deducted at source amounted to Rs
422.97 crore. Besides TDS, provident fund of Rs 43.80 lakh, service
tax of Rs 10.47 crore and fringe benefit tax of Rs 4.50 crore “were
outstanding for a period of more than six months”.
Many employees belonging to the airline have correspondingly received
notices. The company allegedly refused to even give them Form 16 when
asked. A source close to a foreign pilot currently employed with the
airline said the commander was rebuffed when he asked the HR about
Form 16. “He was told there is no such thing as a Form 16 under Indian
taxation system,” said the source
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