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 :: form 3cd :: empanelment :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4%
 
 
ę General »
 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
 Alarm bells over return of tax inspector raj
 Shah gets notices over civic tax dues
 Tax revenue down in first six months after prohibition

Third party administrators under watch for TDS default
February, 05th 2009

Third Party Administrators(TPA) have come under the Income-Tax departments scanner for not deducting tax at source (TDS) on the
payments they make to hospitals. TPAs act as middlemen between employers, insurance companies and hospitals. They process insurance claims and carry out all other administrative work for them.

With the overall tax collections growing at a slower pace of 13.21% as against the required rate of 20% to achieve the budget target, the Income-Tax department has now turned its focus on TDS compliance. The department is carrying out extensive surveys on TPAs and hospitals after they were found defaulting on tax payments.

While in some cases TDS was not being cut altogether, in some cases it was found to have been deducted at a lower rate, an official from the tax department explained. TPAs make payments to hospitals for treatment of subscribers of medical insurance providers in cashless system. These payments to doctors and hospitals are covered under Section 194J of I-T Act. TDS rate applicable under this section is 10%.

In come cases, hospitals were found to be camouflaging salary payments to doctors as payments for professional services which attracts a lower TDS rate of 10%. In the case of salaries, the deduction is made at the rate of 20%. The official said the departments emphasis on TDS has already begun to show results and the collections could go up further with focused surveys on select sectors.

The governments TDS collections for corporate taxes grew 41.1% to Rs 50,252 crore in April-January 2008-09 as against Rs 35,615 crore in the same period last year. For personal income tax, TDS collections jumped 20.6% to Rs 54,099 crore in the period under review as against Rs 44,870 crore last year.

Compared to TDS collections, corporate tax collections grew at 17.32% to Rs 157,039 crore in April-January 2008-09 from Rs 1,33,851 crore in the same period last year. Personal income tax, including fringe benefit tax, securities transaction tax and banking cash transaction tax, grew at 6.71% to Rs 90,010 crore in the period under review as against Rs 84,349 crore in previous fiscal.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

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