BCIC recommendations on tax reforms accepted by Shome Committee

The Tax Administration Reform Commission (TARC) headed by Parthasarathy Shome has accepted the suggestions of the Bangalore Chamber of Industry and Commerce (BCIC) pertaining to realignment of the administration of CBDT and CBEC which will help move towards a more “unified management structure”. The Committee suggested abolition of the post of Revenue Secretary, merger of Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC) and broaden the use of Permanent Account Number (PAN).
The recommendations by BCIC have been incorporated in TARC’s report submitted to the Finance Ministry.
Some key suggestions by BCIC included in TARC report:

• Realignment of administration of CBDT and CBEC to develop a unified management structure.
• Abolish of manual filing of TDS certificates
• Single registration of both central excise and service tax
• Dispute resolution based on a fundamental approach of collaborative and solution oriented
• PAN as a common business identification number
• Single registration for both central excise and service tax
• Enhance the number of payment gateways for tax payments, provision to allow disclosure in the returns.
• Do away with territorial jurisdiction
• Industry-based assessment
• Dispense with manual filing of TDS certificates
• Alternate and speedier dispute resolution mechanisms

Note: The TARC was formed by the Union government with a view to review the application of Tax Administration in India in the context of global best practices.

Month: Current Affairs - June, 2014