Kiran Govt yet to pay Rs 5,000 crore of IT

Strike torn and political crisis hit Andhra Pradesh Government has emerged as the biggest  Income Tax defaulter.

According to G Rajeshwara Rao, chief commissioner, ITD (AP Circle) the State government, which is spearheading its VAT drive against textile traders, oil tanker owners, has yet to shell out Rs 5,000 crore for this fiscal to the Income Tax (IT) Department.

And the State is lagging in number of e-returns filed in the country .Though the State is emerging as a major IT hub in the country, it has recorded poor show in filing of returns online. According to the IT department, AP has been ranked 10th in terms of number of e-returns filed during FY 2011-12.

The AP circle stood fifth in the country with IT collection of Rs 25,837 crore. The first four slots have been occupied by Mumbai, Delhi, Bengaluru and Chennai circles. I-T department recorded zero tax payments from micro finance companies (MFNs) in the State.

Several government departments deduct tax on payments to contractors, employees’ salaries (tax deducted at source-TDS) promptly. It’s learnt that the government has failed to remit the same to the I-T department.

On the same lines, tax on the government income, earned on brokerage fee and commissions from various organisations is also due for payment to the I-T department. The imposing of VAT on several goods is pushing the State government’s revenues upwards. Adding to this, the frequent hikes in fuel prices have turned out to be a windfall to the government.

However, the State government is also feeling the heat of burden in implementation of several welfare programmes and subsidies. Usually, the State government pays tax to I-T department by making book adjustments through AG account if there is a delay by a couple of months. This is the first time the government could not pay I-T in time, said sources in the government.