The Department has found violations by oil companies, cellular operators, makers of advertising films, and companies which were supposed to deduct tax in their transactions with foreign lead managers for Euro issues.

Many of these businesses have been giving TDS the go-by in payment of rental charges etc. The film makers identified have also not deducted tax from payments made to artists and others for their services abroad or in India, as required by Section 194-J of the I-T Act. In the case of foreign lead managers, where TDS has not been deducted on payments made to them, the Department has given directions to the companies to pay up.

The surveys will be conducted with a view to educating tax payers, and survey teams havebeen ``instructed'' to be polite to the tax deductors, said the press note which has been signed by the joint commissioner of I-T, Rajeev Agarwal.