Doing biz with govt: TDS system helps taxmen detect Rs 10 crore GST evasion in Karnataka
With tax deducted at source (TDS) regime under GST kicking off from October 1, taxmen have been able to catch such contractors and businessmen who do business with government but pay no taxes. The Commercial Taxes department has detected more than 800 such cases for October with data analytics software identifying the tax evaders.
Commercial Taxes Commissioner M.S.Srikar, in a press release, said these registered dealers owe about Rs 10 crore in taxes.
The GST regulations require government departments, and organisations to deduct 2% of GST (TDS) while making payment to contractors and businessmen from whom they are buying goods and services. The government authorities later file GST returns identifying persons/companies from whom the TDS has been deducted, while remitting the 2% taxes collected.
In October, government departments and organisations filed 958 TDS returns after deducting 2% GST and remitting it to the government. Which means, the department expects the same number of returns along with taxes from registered dealers who did business with the government.
The TDS regulations have helped taxmen keep an audit trail, and to recover the balance GST from registered contractor and businessmen in cases where they have defaulted.
The data analytic software, developed by National Informatics Centre.
Srikar said, identifies cases where registered dealers have done business with government, accepted payment but have neither filed returns nor have paid taxes.
Source :- Economictimes.indiatimes.com