26 April 2008
TDS IS A REVENUE COLLECTION MEASURE OF GOVT. - TAX COLLECTION BEING A MEASURE TO RAISE FIN.RESOURCES TO RUN THE ECONOMY LIKE VAT / SERV.TAX / EXCISE / OCTROI / INCOME TAX / LUXURY TAX ETC...SOME OF THESE BEING DIRECT TAXES AND SOME INDIRECT TAXES.THIS IS A GLOBAL PRACTICE.
ASSUME FOR A MOMENT THAT NO TDS IS DEDUCTED FROM A SALARY EMPLOYEE, NO TDS IS DEDUCTED FROM CONTRACTOR/OR PROFESSIONAL /NON RESIDENT/COMMISSION PAYMENT/RENT PAYMENT ETC... WHO WILL ENSURE TAX COLLECTION THEN? THEN THERE ARE NO CHECKS AND BALANCES. SOMEBODY GOES SCOTFREE WITHOUT CONTRIBUTING TO EXCHEQUER. THERE IS THE OTHER CLASS LIKE BUSINESS CLASS WHO ARE FORCED TO COUGH UP TAXES BY WAY ADV. TAX,REGULAR TAX ETC... TDS IS ON SERVICES WHILE VAT IS ON SALE . R.V.RAO
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