Income tax is focusing on traders and companies that are not paying tax collected at source (TCS) in the state. As part of the drive, the department undertook a survey operation in a town-based cotton merchant Tuesday.

The drive began last week and IT Officials have found tax evasion worth Rs 4 crore.

TCS covers sales of products such as pieces of wood and tendu leaves. In addition, government agencies even as Ahmedabad Municipal Corporation, National Highways Authority of India and Airports Authority of India has to pay 2% on amounts TCS such as parking, mines, quarries and without contracts Plaza are given.

“We have carried out a survey in the four companies involved in steel scrap and iron generated by the railways,” said a senior IT official. “The total turnover of the dealers were around Rs 230 crore but none of them had paid TCS, which is 1% for scrap. “The official said that most retailers do not collect the tax from purchasers, and in rare cases that ‘they had, they did not pay department. “We have ordered to pay Rs 2.3 cr of the tax evaded,” the official said.

During the operation on Tuesday, officials found the incriminating documents suggests that the trader had evaded more than Rs 1 Cr TCS. “A lot of dealers and buyers who are covered by TCS is – through ignorance or otherwise – not to pay the mandatory CDS,” said the official. “We started the survey of these people in Ahmedabad and those in d other cities will soon be under the scanner. “