Ludhiana: Tax scrutiny of hospitals reveal TDS,TCS violations

Ludhiana: A recent survey carried out by the Income Tax Department has revealed glaring discrepancies of income tax returns by big city hospitals. Evading the actual amount of tax levied on them, many hospitals have been found guilty of  failing to comply with the TDS (tax deducted at source )and TCS (tax collected at source) norms.

With instructions from the  joint commissioner of income tax department, Dr Tarundeep Kaur, the hospitals had their accounts examined by deputy commissioner  Dr Gagan Kundra, bringing the cash bills and other accounts of the hospitals under scrutiny.

"The most common ways of defaulting or evading tax by the hospitals include showing their permanently employed doctors on whose salaries 30% TDS needs to be deducted as visiting professionals in their accounting records, as only 10% TDS is chargeable on services rendered by the visiting professionals. Besides this other aspect is treating the annual maintenance contract (AMC) of the technical equipment of hospital as simple contract and paying 2% TDS whereas 10% TDS should be paid on it." Dr Gagan Kundra, Deputy commissioner of income tax (TDS) told the TOI.