Fin Min does not rule out prosecution to recover Rs 200 cr tax from KFA

CBEC likely to make comprehensive plan to recover tax dues

Troubles for Kingfisher refuse to die. A key official in the finance ministry today said the revenue department is preparing a comprehensive plan to recover over Rs 200 crore tax dues from the debt-ridden Kingfisher Airlines (KFA).

"As a matter of fact both Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) have quantified the amount which Kingfisher owe to the government and we will be making out comprehensive plan to recover tax dues," CBEC Chairman Praveen Mahajan told reporters on the sidelines of a Confederation of Indian Industry (CII) event here.

Kingfisher owes more than Rs 200 crore in taxes to the government.    

When asked whether the CBEC is contemplating prosecuting KFA, Mahajan said,"Prosecution also might happen...But everything takes time.

There are different steps you have to take before you prosecute somebody."    

She said her board has done whatever could be done through the Finance Act. "We have already frozen KFA's accounts. Whatever is there in the Act, we have taken all the actions because this is in our interest also."

The CBEC chief indicated that the Reveune Department might talk to aviation regulator DGCA as the beleaguered airlines is likely to submit a comprehensive revival plan to DGCA by this month-end.    

"Finance Minister P Chidambaram has told CBDT and CBEC to get together and plan it out and whether it involves talking to regulator or whatever," she said.    

On revenue collections, Mahajan expressed confidence that the government will be able to meet indirect tax realisation target of Rs 5.05 lakh crore for 2012-13. The indirect taxes during April-September rose by 15.6 per cent to Rs 2.17 lakh crore as against the annual target of 27 per cent.    

"Tax collection is doing better. We are hopeful of meeting the target. Service tax collection growth is already more than 35 per cent," she said.

Service tax collections are pegged to rise over 30 per cent to Rs 1.24 lakh crore in 2012-13 against Rs 95,000 crore in 2011-12, according to the Budget Estimates. In the first quarter of the current fiscal, it was only services, particularly financial and construction ones, that pushed up India's economic growth.

The GDP grew 5.5 per cent in April-June period of 2012-13 against 5.3 per cent in the fourth quarter of 2011-12.