Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: empanelment :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: form 3cd :: ACCOUNTING STANDARDS :: TDS
 
 
News Headlines »
 What to do if you get an income tax notice after demonetisation
 SBI calls for raising income tax exemption limits
 Did you know? The tax exemption on your HRA
 Income Tax Department expands list of deposits, transactions under scrutiny
  Income-tax Act, 1961 read with Rule 114E of Income-tax Rules, 1962
 Master Directions on Access Criteria for Payment Systems
 RBI-Scheduled Bank's Statement of Position in India as on Friday, January 06, 2017 (Revised)
 3 Big Mistakes To Avoid This Tax Season
 The Top 5 Tax Stories Of 2017
 Are multiple service tax rates in the offing?
 All you need to know about claiming tax break on HRA

I-T dept closes in on TDS defaulters
January, 21st 2009

The Mumbai income tax department has surveyed 50-60 companies, including multinational firms, in the past two weeks as part of its drive
to identify and bring to book tax deducted at source (TDS) defaulters. The department is mainly focusing on companies that have collected TDS, but not deposited the same with the department.

In the case of MNCs, the department is investigating companies that have not deducted TDS before making payments to Indian entities with whom they have carried out transactions.

PC Chhotray, chief commissioner, income tax, Mumbai, told ET: "Yes, we have been conducting the surveys. I am waiting for the reports from my officers regarding the results of these surveys."

However, it is learnt from reliable sources that most of the MNCs surveyed by the department were contesting the demand for TDS. In many cases, whereas the income tax department thinks that an overseas company is liable to deduct TDS before making payment to an Indian company in a cross-border transaction, the MNCs have taken the line that the transaction does not attract tax in India.

These are similar to the Vodafone case in which the global telecom major has dragged the department to the Bombay High Court, challenging its jurisdiction to demand tax from the company. Such issues generally end up in court, a senior income tax official in Mumbai said.

Tax deducted by employers from salaries of employees constitutes a significant portion of the TDS collected. Here also, there are cases where companies have been found to have defaulted in paying to the tax department despite deducting the tax from employees.

Income tax survey is a milder version of an income tax raid. Under the latter, the officers have the power to seize documents, assets, bank lockers and freeze bank deposits while under a survey, the powers are limited to collecting information and examining the documents.

But survey is an effective tool as it results in disclosure of actual income of the taxpayer. Survey is also an effective deterrent for tax evaders.

TDS collection in April-December 2008 period recorded a 34% increase to Rs 29,000 crore from the same period in the previous fiscal year.

According to sources, the income tax department is on a drive to increase the tax collection from Mumbai, which accounts for 35-40% of the national direct tax collection. The advance tax collection from Mumbai in the current fiscal to December 2008 was way below expectations.

However, even as corporate tax collection fell below the previous years collection, it was the growth in TDS that brought the total collection 6% above the corresponding period last year.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions