PM Modi seeks CAs' help to spread tax knowledge

He was addressing chartered accountants after launching a new course introduced by ICAI

Prime Minister Narendra Modi on Saturday said days before the roll-out of the goods and services tax (GST), the Registrar of Companies had deregistered about 100,000 firms for irregularities. He also said data mining of money deposited in banks following demonetisation had revealed irregularities in transactions of 300,000 entities.

He was addressing chartered accountants after launching a new course introduced by the Institute of Chartered Accountants of India (ICAI).

Finance Minister Arun Jaitley, who also addressed the event, said, “Why are some traders protesting against the GST when customers, who have to pay the tax, are not?”

The government had demonetised old Rs 500 and Rs 1,000 notes on November 8, 2016. The GST, which replaces a slew of state and central indirect taxes, was rolled out on Friday midnight.

On Saturday, Modi said the government had zeroed in on 37,000 shell companies floated to hold black money. “We are taking strong measures against black money holders and corrupt persons. We will take stronger measures against these entities in coming days.” The PM requested CAs to not support corrupt practices and to spread awareness among the people about the GST.

Citing Swiss National Bank’s (SNB) figures, Modi said money deposited by Indians in Swiss banks fell to a record low in 2016 — there was a 45 per cent decline, to 676 Swiss francs (about Rs 4,500 crore).

“I have launched the Swachh Bharat Abhiyan to clean up the country. I am also carrying out operations to clean the economy,” the prime minister said. 

He also tugged at the conscience of CAs and appealed to them to not support generation of black money.

“Only 3.2 million people in the country revealed that their income is more than Rs 10 lakh while 20.18 million people travelled abroad last year. Millions of vehicles are purchased in the country, but they don’t contribute to the exchequer. This is a matter of concern,” the prime minister said. 

He said the Institute of Chartered Accountants of India conducts enquiries to find who were helping tax evaders. “But action was taken against only 25 CAs. Is it possible that only such a small number have been involved in wrong doings?”

Finance Minister Jaitley said a very small percentage of traders were objecting to the GST and claiming their information technology knowhow was not good enough.

“It can’t be a logical argument that since I have not paid taxes in the past regime, so I will not pay now as well. If India is to become a developed nation, the mindset should also be of the developed nation,” he said.