Even after registering 14 per cent growth,the Vadodara region of Income Tax (I-T) department may fall short of its annual target of tax collection following low contribution by chemical and power sector players.
For the current fiscal,the region had set the target of Rs 4,233 crore 31 per cent more than the last years collection of Rs 3,500 crore. And as on March 20,the department had collected Rs 3,800 crore falling short by nearly 10 per cent of its target with 11 days remaining in the current financial year.
The shortfall is due to lower tax collection from chemical and power sectors. PSUs (Public Sector Undertakings) are our major payers but receipts from them have been lower than expected, Rajiv Lal,Chief Commissioner of Income Tax,Vadodara,told The Indian Express.
The Vadodara region has around five lakh assessees or tax payers. Vadodara is the base of a number of big central PSUs like oil majors Indian Oil Corporation Limited,Oil and Natural Gas Corporation,and state PSUs like Gujarat State Fertilisers and Chemical Limited and Gujarat Alkalies and Chemicals Limited.
The sale of chemicals has been lesser this this year. The import of chemicals might have increased following high prices in domestic market, Lal said.
Though power is a growing sector,its share in income tax has gone down. The states power utility,Gujarat Urja Vikas Nigam Limited and its distribution subsidiary Madhya Gujarat Urja Vikas Nigam Limited have their headquarters in the city.
Power is also a major contributor. But PSUs in this sector have not received any subsidy (grants) from the government so far. So,receipts from them are short of target, he added.
Nonetheless,Rs 3,800 crore is 14 per cent more than the last years collection. But this seems much lower compared to 25 per cent to 30 per cent annual growth registered by the Ahmedabad,Rajkot and Surat regions.
We are making efforts to meet the target. We are conducting spot verification of TDS (Tax-Deducted at Source by firms) through surveys and unearth unaccounted income through raids. We are collating every detail of assessees and shall use penal provisions wherever required, said Lal.
The department has so far detected undisclosed income to the tune of Rs 200 crore in 31 survey operations and is set to receive around Rs 60 crore in taxes on it.
Last week,it had raided a power sector company and found unaccounted sales worth Rs 644 crore and black money worth Rs 58 crore.