GST: Income Tax Dept. eyes on marriage halls to impose penalty on unaccounted payments

Hyderabad: With the commencement of marriage season, Income Tax Dept. has an eye on marriage halls of the city. It is reviewing the charges collected by these function halls.

It may be mentioned that Govt. of India imposed the tax if the rent of the marriage hall exceeds Rs. 2 lakh. The Dept. is of the opinion that in Hyderabad, lakhs of rupees are spent on the rent of the marriage halls and their decoration. Most of the payments are made in cash. In most of the marriage hall in Hyderabad, the rent is Rs. 2 to 3 lakh. Income Tax Dept. is eliciting information about the bookings and the charges received. After the construction of grand marriage halls, Income Tax Dept. is making an attempt to collect GST from these function halls.

Many payments in the form of wages to the cook and other workers are made in cash. Income Tax Dept. is making an attempt to take into account all such unaccounted cash payments. According to the Govt. of India rules, any payment exceeding Rs. 2 lakh should be made through cheques else 100% penalty would be imposed.

In South India, the process of issuing notices to the account holders who deposit amounts more than Rs. 2 lakh in their accounts has been started.


–Siasat News