Tax authorities lifts freeze on Kingfisher’s eleven bank accounts.

Kingfisher AirlinesNew Delhi: India’s tax authorities have lifts a freeze on Kingfisher Airlines Ltd.’s 11 bank accounts after the carrier paid part of its service tax arrears, an official said on Wednesday.

Commissioner of service tax in the Mumbai, SK Solanki said that “Kingfisher paid 90 million rupees ($1.71 million) yesterday toward its service tax dues and has agreed to clear its arrears in installments by March 31.”

The move comes as a much-needed reprieve to billionaire Vijay Mallya’s loss-making Kingfisher Airlines, which lately cancelled dozens of flights and stopped low-fare flights to severely cut costs.

India’s carriers have been strike sternly by expensive jet fuel, high interest costs on debt and mounting losses in a slowing economy. All airlines except one, IndiGo are making losses.

Mr. Solanki said that Kingfisher remaining 700 million rupees in service tax for the April-November period.

The service tax department had preceding week frozen 11 bank accounts of Kingfisher and 10 of state-run Air India Ltd. for non-payment of tax. It raises the freeze on Air India’s accounts Friday after the carrier paid 80 million rupees.


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