'IIPM spent 49 cr on ads, paid no taxes'

NEW DELHI: The high-profile Indian Institute of Planning and Management (IIPM), which spent a staggering Rs 49 crore on advertisements in 2004-06, did not pay either income tax or service tax for the two years.

IIPM has not paid income tax during the assessment years 2005-06 and 2006-07, claiming exemption under section 10(23C) (vi) of the Income-tax Act, 1961, Minister of State for Finance S S Palanimanickam informed the Rajya Sabha in a written reply today.

The institute incurred an expenditure of over Rs 17.28 crore and Rs 31.62 crore on advertisements during 2004-05 and 2005-06 respectively, but has not paid service tax, he said.

Palanimanickam was replying to a query on whether private educational institutions not recognised by UGC or AICTE were evading taxes.

"During the course of enquiries carried out by Income Tax Department, instances of tax evasion by private educational institutions, running various courses, some of which are not recognized by the UGC/AICTE, have come to notice," he said.

The minister also said IIPM funded the cost of advertisement out of various receipts from activities carried out as reflected in its income and expenditure statements.

As far as service tax was concerned, proceedings have been initiated against some of the institutes for evasion of service tax on services provided by them in relation to commercial training or coaching, he said.