Total tax burden may be in the range of ₹35-40 crore
The Income Tax (I-T) Department on Friday surveyed the office of online cab aggregator Uber for alleged violation of Tax Deducted at Source (TDS) norms.
Sources in the department said Uber’s office at Phoenix Market City in Kurla was surveyed after it was suspected that the company had not deducted tax while paying its drivers.
“There is a routine TDS survey currently in progress in our Mumbai office. We are fully cooperating with the authorities,” an Uber spokesperson said.
The payout to drivers is liable for TDS under Sec 194C and 194H of the I-T Act, depending on whether the same is paid as commission or hire charges.
Uber clocks about 30-40 lakh rides per month at an average price of ₹200 per ride and drivers are given substantial payout.
Sources indicated that the total tax burden could be in the range of ₹35 to ₹40 crore. The I-T Department had asked Uber to furnish data on the amount of transaction on which TDS would be charged, but Uber was yet to respond till Friday evening. The TDS from drivers’ payout would range from 2-5% depending on the nature of the payout, whether it was contract or incentive-based. Sources said the survey had been carried out only at Uber’s Mumbai office.