The Consultancy Services provided by various Elite Education Institutes of Our Country has come under the radar of Income Tax Department. The IT Department alledges that the clients in such cases do not deduct TDS. Most of the IITs, IIMs and other premiere Institutes like BIT, BITS take up consultancy projects on a regular basis. The Fees Paid to Surgeons of Super Speciality Hospitals is also under Investigation
A communication to keep a track on these potential tax generating areas has recently been sounded by the department to its Chief Commissioners (CCs) and Director Generals (DGs) during a recently held conference of the department brass and the CBDT in the national capital.
According to the I-T data, while the Indian Institutes of Management (IIMs) and Indian Institutes of Technology (IITs) render consultancy services to a host of government and non-government sectors, the beneficiaries (clients) of these services do not deduct the TDS on the payments made to these elite institutions.
The report stated the consultancy offered by these elite pan-India institutes as “commercial”. The I-T found that on an average an IIM undertakes about 40 fresh consultancy projects in an year on a host of subjects. While some are related to giving advice to clients on specific issues and problems, others include training modules for the staff of the client company, while some are related to orient maximum output from a desired project of the client firm.