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: TDS :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: cpt :: VAT Audit :: Central Excise rule to resale the machines to a new company :: empanelment :: ACCOUNTING STANDARDS :: VAT RATES :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
 
 
General »
 Tax breather for foreign investors: All you need to know
 What the increase in tax collections does not tell us about Indian economy post demonetisation
 India’s crazy retrospective tax on foreign funds will tarnish country’s reputation
 How tax related, PAN grievances can be resolved through E-Nivaran
 Tackling income tax exemptions for equities and agriculture
 Amfi wants tax benefits for retirement plans
 Top five factors which could chart market direction in the coming week
 Tax rate hikes boost shadow economy
 Tax mop-up may decline in new amnesty scheme
 Weeks before Budget, Finance Minister Arun Jaitley lists out benefit of low tax rates
 Second home loan tax benefits

KPTC evades Rs 2.5-crore tax
February, 19th 2009

Government agencies are no less when it comes to income-tax evasion. The I-T department found that the Karnataka Power Transmission Corporation (KPTC) had not remitted to the government a part of the tax it deducted at source in 2008. The tax deducted at source (TDS) default and interest on it amounts to around Rs 2.5 crore.

Consequently, the TDS wing of the I-T department (Bangalore circle) has now started a survey into accounts of all government agencies.

During the survey, the I-T department found that KPTC has entered into contract agreements on total turnkey basis with various contractors, including ABB Ltd, Siddharth Engineering, Bharat Electrical and BNA Technology to set up its sub-stations. These are built to segregate the load of one station or to improve reliability of power supply.

When these agreements were checked, it was noticed that KPTC had entered into composite contract with contractors to supply material and perform civil work, among others.

While 2% tax was being deducted at source on civil work and erection work, the same was not so in the case of supply portion.

According to officials, income-tax rules clearly insist that tax should be deducted on supply portion since KPTC had awarded work on turnkey basis, which amounts to composite contract.

"KPTC should have deducted tax on supply portion of the composite contract. Since the organization had defaulted by not deducting tax on supply portion, the I-T department held KPTC as assessee in default and took steps to compute the tax and interest liability,'' KPTC sources said.

KPTC, a state government organization, is involved in transmission and distribution of power. It also manages five distribution companies viz Bangalore Electricity Supply Company (Bescom), Mangalore Electricity Supply Company, Hubli Electricity Supply Company, Gulbarga Electricity Supply Company and Chamundeshwari Electricity Supply Company.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Bath SEO Company Birmingham SEO Company Bradford SEO Company Brighton and Hove SEO Company Bristol SEO Company Cambridge SEO Company Canterbury SEO Company Carlisle SEO Company Chester SEO Company Chichester SEO Company Coventry SEO Compan

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