Jet Airways faces IT dept scrutiny over TDS defaults

According to sources, the airline has paid the TDS but mostly after the scheduled payment date

Income tax authorities have slapped a prosecution notice on the Naresh Goyal-promoted Jet Airways for alleged default in payments of tax deduction at source (TDS), official sources said on Thursday.

The notice was served to the Mumbai-headquartered airline after tax personnel said they detected “several irregularities” in  TDS payments by the private carrier. “We have issued a prosecution notice to Jet for TDS default for the previous three financial years of  2008, 2009 and 2010, as well as the ongoing one,” the sources said.

These notices are apart from the two issued to Jet earlier for delay in TDS payments during 2013 and 2014, they said. The airline has paid the TDS but mostly after the scheduled payment date, said the sources.

Jet Airways, in its response, said it was up-to-date on TDS payments and that it was discussing the (notice) issue with the tax authorities. Jet Airways (India) Ltd has paid all of its TDS dues, including interest, to the income tax authorities. As of date there is no TDS amount overdue for payment. “Since Jet Airways is in dialogue with the income tax authorities, it is inappropriate for Jet to comment any further,” a Jet Airways spokeperson said in an e-mail.

As per the rule, retention of the government dues beyond the scheduled payment date is an offence liable for prosecution under

Section 276B of the Income Tax Act, 1961 and the defaulter, if convicted, can be sentenced to rigorous imprisonment for up to seven years.