TDS Surveys by Income Tax Department unearths huge defaults in deduction and deposit
The IT Department has stepped up enforcement action against TDS default cases. TDS collection contributes to over 45% of the total direct tax collection in the country.
The TDS wing of the Department unearthed default of TDS incase of a Telcom Operator in Delhi. The company failed to deduct TDS under s. 194J on technical contracts worth INR 4,000/- crore.
Several hospitals as well were found violating TDS norms. A survey was undertaken a two premier hospitals, one of them was found not to deduct TDS on contracts under s. 194C and 194J whereas the second one deducted TDS on doctors salary at 10% instead of the applicable 30%.
In another action by the TDS Wing, TDS defaults of approx. 3200 crores were detected in the case of a major oil company pursuant to a survey under s. 133A of the ITA. The defaults pertain to non – deduction / short deduction of TDS under s. 194J on payments of FTS as well as composite contracts on which TDS @ 2% should have been deducted.