Flying high, the Mallya Kingfisher way

Air India, Kingfisher Airlines accounts frozen by service tax dept for non-payment of dues - The Economic Times: "Kingfisher, India's third largest airline, which has not paid salaries to a part of its 7,000-strong workforce for over two months now, is already operating on a daily cash clearance basis of Rs 50 lakh at the Mumbai airport, where it owes authorities Rs 90 crore for aeronautical service charges.

It could not be ascertained whether the service tax authorities had ordered any recovery of dues from Kingfisher yet or if the airline had approached authorities seeking relief.

Experts said recovery of dues could happen either through sale of assets or by auctioning real estate. "The recovery process comes under the Revenue and Land Arrears Act. One option with the authorities is to auction fixed assets, which is a long drawn process; the other way is if the company is under serious financial duress it can make a representation to the government and seek relief," said Sachin Menon, partner and head, indirect tax, KPMG. "

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