Thursday, 11th August,
The income tax department is planning to scan traders and companies that are not paying Tax Collected at Source (TCS) in the state. The drive began last week and I-T officials have unearthed tax evasion amounting to Rs 4 crore.
TCS covers, among others, sellers of commodities like Scrap, Timber and Tendu leaves. Besides, even government bodies like Ahmedabad Municipal Corporation, National Highways Authority of India and Airports Authority of India have to pay 2% TCS on amount at which parking, mining, quarrying and toll plaza contracts are given.
According to an IT official, “We carried out a survey operation on four firms dealing with steel and iron scrap generated by the railways,”. “The combined turnover of the dealers was around Rs 230 crore but none of them had paid TCS, which is 1% for scrap.”
“Most of the traders had not collected the tax from buyers but only in the few cases they had, they didn’t pay the department.”We have ordered them to pay Rs 2.3 cr of evaded tax,” the official added.
During the operation on Tuesday, I-T officials found incriminating documents suggesting that the trader had evaded more than Rs 1 cr of TCS. “Many traders and buyers who are covered under TCS are – out of ignorance or otherwise – not paying the compulsory TCS,” the official said. “We have begun surveying such traders in Ahmedabad and those in other cities will soon come under the scanner.”
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