Three Major government agencies of Telangana and AP Andhra Pradesh Beverage Corporation Limited (APBCL), Hyderabad Metropolitan Development Authority (HMDA) and AP Housing Board (APHB) are locking horns with Income Tax department over payment of tax dues.
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The IT department had slapped notices to these agencies to pay over 4000 Crore. APBCL had to pay Rs 2,900 crore on the earning through sale of liquor, HMDA and APHB were asked to pay taxes of Rs 400 crore and Rs 900 crore respectively towards revenue generated through sale of land. While the taxes of APHB and APBCL are to be divided between both the states. HMDA is under the sole control of Telangana.
However these agencies claim that they are not profit making agencies but their earnings will be proceeded to the state governments which will not come under purview of the Income Tax department. The IT department, however, claims that any revenue generated would attract income tax. Both the State governments are taking up this issue with the Center.
