Shome panel accepts BCIC proposals for tax reforms

The chamber had recommended for realignment of administration of CBDT and CBEC, which has been mentioned in the TARC report, submitted to FinMin

Tax Administration Reform Commission (TARC) has accepted the recommendation of Bangalore Chamber of Industry and Commerce (BCIC) related to the realignment of administration of CBDT and CBEC, which will help move towards a more "unified management structure". The TARC has incorporated the chamber's suggestion in its report submitted to the Finance Ministry recently.

In addition to realignment of administration of CBDT and CBEC, several other recommendations suggested by BCIC vis-à-vis: abolishing 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, to name a few have been incorporated in the first report of TARC.

Expressing satisfaction over TARC report, H V Harish, President, BCIC said, "It is heartening to see that the report of TARC is based on wider consultation of relevant stakeholders. The recommendations of TARC is a step in the right direction of enhancing investors' confidence and we welcome the same."

The Union government had set up the Tax Administration Reform Commission under the Chairmanship of Parthasarathi Shome with a view to review the application of Tax Administration in India in the context of global best practices.

BCIC was the official nodal agency to coordinate and organise stakeholders meeting for the Commission in Bangalore and during the meeting it had submitted comprehensive recommendations which prominently figures in the first report submitted to the Government for action, Harish said in a statement.

P V Srinivasan, Chairman, Indirect and State Taxes Expert Committee, BCIC and Senior Vice President - Corporate Taxation, Wipro Limited said: "We are extremely satisfied that several of our key recommendations have formed part of the TARC report. We urge the Union Government to expeditiously implement these recommendations as this would bring a radical change in the landscape of Indian Tax Administration."

Some of the key recommendations made by BCIC, which have been included in the TARC report include: PAN as a common business identification number, single registration for both central excise and service tax, increase in the number of payment gateways for tax payments, provision to allow disclosure in the returns. It had also recommended dispensing the territorial jurisdiction and introduces industry-based assessment and do away with manual filing of TDS certificates and need for alternate and speedier dispute resolution mechanisms among others.

K R Sekar, Chairman, Direct Taxes Expert Committee and Partner, Deloitte said: "Administration of tax laws in right and fair manner will contribute to the growth of economy. With these recommendations, taxpayers are positive on reforms in administration of tax laws, which will aim to resolve disputes and reduce litigation with intent to achieve certainty. It is widely believed that significant portion of potential tax revenue uncollected can be mopped up through proper tax administration. The tax laws if properly and rightly administered will pave way for better collection of tax as implementation of proper administration of tax always has a direct impact on tax policy formulation."

He further added: "We hope that recommendations related to Dispute Resolution Mechanism and also methodology related to assessment processes if implemented would help achieve these objectives. The shift in approach considering Taxpayer as a Customer as recommended by TARC is a good feature which the Government should accept."