IATA directed to pay Jet8217;s tax dues

CBEC officials confirmed that the Service Tax Department had sent such a directive.

The department,which had sent a notice last Friday to Jet Airways cautioning the airline that its accounts would be frozen if it fails to to clear the service tax by Monday.

The service tax payment was due since March 6. Jet had then said it would clear the dues by today.

Confirming the action against them,a Jet spokesperson said today 8220;the Service Tax Department has been in touch with IATA with regards to having their proceeds remitted when the collections are remitted to Jet Airways8221;.

The spokesperson said 8220;no bank account of the airline has been frozen or attached.8221;

The IATA maintains accounts to enable airlines transact business with their counterparts,travel and cargo agents and other vendors,both in the domestic and international markets.

The Service Tax Department8217;s action implies that IATA would first deduct the payments due to the Department before settling the Jet account.

The primary IATA platforms,which carry out these activities are its Clearing House,Billing and Settlement Plan BSP and Cargo Accounts Settlement System CASS.

While the IATA Clearing House deals with airlines making payments for services to other carriers or aviation-related companies,the BSP and the CASS programmes facilitate the sale of tickets and booking of cargo through travel and freight agents.