I-T detects TDS defaults worth ‘hundreds of crores’

The telecom operator is found to have defaulted Rs 324 crore on TDS payment. “The company did not make the required TDS payment of 10 per cent u/s 194J of the Income-tax Act, 1961 on technical contracts worth Rs 4,000 crore. The amount is further liable to go up once the enquiry is completed,” the department said in a statement, without naming the telco.

Similarly, two premier hospitals with 2,500 and 700 bed capacity have committed TDS default of Rs 70 crore and Rs 20 crore, respectively. While one hospital was guilty of not making any TDS on construction contracts as statutorily required, the other one was deducting tax at the rate of 10 per cent only on salary paid to the doctors, instead of the present TDS rate of 30 per cent applicable for salary payments.

Additionally, an enquiry has revealed that the hospitals were also not making the required TDS payment at 10 per cent from the maintenance charges paid for the hi-tech sophisticated operation theater and diagnostic equipment. —FE