Kingfisher agrees to pay dues by March end

Cash-strapped Indian carrier Kingfisher Airlines has not deposited with the government most of the income tax it deducted from its employees’ salaries for the last two fiscal years, junior finance minister told lawmakers on Tuesday.Kingfisher has about 1.3 billion rupees ($24.6 million) of tax deducted at source (TDS) to be deposited with the government and has committed to pay it by the end of the current financial year to March 2012, S.S. Palanimanickam told parliament in a written reply.“Survey has been conducted in case of Kingfisher Airlines, which revealed that the airline had not adhered to TDS provisions,” the minister said.The government has initiated proceedings to recover the default amount, levy interest on delayed payment, and take further statutory actions, the minister said. A Kingfisher spokesman did not immediately respond to calls and e-mail queries.Earlier this month, tax officials had temporarily frozen 11 bank accounts of Kingfisher Airlines after the airline failed to pay service tax dues.Debt-laden Kingfisher, which has been grounding planes and cutting routes to stay afloat, is scouting for funds and is negotiating with its lenders for 7 billion rupees of working capital loans.