In a surprise inspection the TDS wing of Income Tax department in Bhopal carried out searches at four district mining offices in the state on Friday. During the search, the I-T sleuths detected defaults aggregating to over Rs 2500 crore.
Officials informed that during the inspections various issues of non-compliance of provisions of tax collections at source (TCS) under section 206 C of the income tax act 1961 were detected.
In one of the cases, it was found that no TCS was collected on the royalty amount of Rs 1660 crore which had been collected from a private company by the district mining office. Further no TCS was collected on the amount paid by the lessee towards DMF (district mineral foundation) and NMET (National Mineral exploration Trust) of Rs 552 crore.
It was also observed that no TCS was collected on the penalty levied in the cases of illegal mining transportation and storage. In another case, 2% TCS on Rs 92 cr royalty was collected but was not deposited in the central government account. It was also found that no TDS was being deducted on the payments being made under the DMF fund and TDS statements were also not being filed.
Further it was found that the district mineral foundation trusts were not filing income tax returns and audit reports as per the provisions of the Act. Total TCS/TDS defaults of Rs 2500 cr were detected during the inspections and further investigations are on.
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