TIOL-DDT 1732 · Tuesday, 15 November 2011 · story 4 of 5

And Air India too

ANOTHER major defaulter of Service Tax is India's ailing erstwhile Maharajah - AIR INDIA. Mumbai Service Tax Commissioner Solanki says that Air India has defaulted in Service Tax payment of about 125 crores in the current year. Their bank accounts were restrained twice and they paid 42 crores but still there is shortfall of more than 125 crores (exact amount to be quantified). Air India simply has no money and maybe the Civil Aviation Minister has to request the Finance Minister to bail him out to pay the Service Tax.

In DDT 1697 – 21.09.2011, we had reported,

“Every month end, I go to Pranab Mukherjee's house at midnight and ask for money”. He asks, “how much”. “I say I want 200 Crores”. He asks, “200 Crores in the night?”

This is the plight of Civil Aviation Minister Vayalar Ravi as every month he has to ask the Finance Minister money for paying salaries of Air India staff. His first priority is to make enough money to pay the salaries.

Now he has to ask for a little more to pay Service Tax!.

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