NEW DELHI: Battling serious financial troubles, is Vijay Mallya-owned Kingfisher even defaulting on payment of tax deducted at source (TDS)? The Airports Authority of India (AAI) has found that the airline had deducted almost Rs 21 crore in payments made to it for the financial year 2010-11 but the same was not being reflected as tax deposited on its behalf. The authority has now asked Kingfisher to pay this sum to it, along with other dues of Rs 200 crore.
"The TDS certificates were not submitted despite this amount (Rs 20.76 crore) being deducted from the payment made to us. We have asked Kingfisher to pay that amount, along with old dues of Rs 205 crore and interest for three months, failing which we may be forced to take action that may affect their flight schedules," said a senior official. The airline spokesperson did not offer any comment on this issue.
The authority is closely watching if Kingfisher is able to deliver on its promise of clearing the dues from October onwards by paying Rs 10 crore over and above the monthly payment every month. Based on this promise, AAI had removed Kingfisher from cash-and-carry and allowed it to make payments once in every fortnight.
Apart from Kingfisher, the other airline in financial doldrums-Air India-is causing its own share of unique problems to airport operators. The Delhi and Mumbai airports share 46% and 38%, respectively, of their revenue with AAI. "These airports requested us that the share of revenue from AI operations should be collected not on accrual basis but as and when AI pays. The airport managements told us that they often borrow money at hefty rates to pay share from AI's bill-which is not paid on time-to us. But this request has been turned down and the revenue share to be paid to AAI will be on accrual and not receipt basis," the official said. The state-owned airport authority gets about Rs 380 crore and Rs 360 crore every year from the Delhi and Mumbai airports, respectively.
AI owes over Rs 700 crore to AAI but unlike private carriers, the authority is denied permission by the aviation ministry to take any action against the Maharaja - like putting it on cash-and-carry. The national carrier is seeking an upfront support of almost Rs 6,000 crore from the government to clear its dues to vendors like airports and oil companies. "The government must quickly decide on financial support to AI as the uncertainty over payment of huge amounts to suppliers and employees is hurting everyone now. Subtle warnings against taking any step against AI that may hasten its demise won't work for too long as our survival is also at stake," said an airport developer.
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