A state government entity operating a petrol outlet was incorrectly charged Tax Collected at Source (TCS) by HPCL. As government entities are exempt from income tax under Section 196 of the Income Tax Act, they are not required to file returns or pay tax. To claim a refund, the entity should request HPCL to file revised TCS returns for the relevant financial years (2021-22 and 2022-23) and arrange for the excess TCS paid to be refunded or adjusted.
15 May 2023
A State Government Entity i.e. Battalion on Special Armed Forces is running a petroleum outlet. The Hindustan Petroleum Corporation Ltd. (HPCL) has collected income tax (TCS) on sales made by it to Battalion petrol pump.
The petrol pump is owned by a Government Entity is not liable to income Tax and therefore not obliged to file return of income and pay tax on income.