The government has accepted many recommendations of the Tax Administration Reform Committee and also proposed to accept a number of recommendations made by Justice (Retd.) R.V. Easwar Committee in Budget 2016-17.
Union Finance Minister Arun Jaitley said this while presenting the General Budget for 2016-17 in the Lok Sabha on Monday.
With an aim to reduce multiplicity of taxes, associated cascading and to reduce cost of collection, abolition of 13 cesses levied by various ministries in which revenue collection is less than Rs.50 crore in a year proposed by the minister.
Measures to rationalise Tax Deducted at Source (TDS) provisions for the Income Tax have been proposed to improve cash flow position of small tax payers, who get their funds blocked due to current TDS provisions.
Also, non-residents without a Permanent Account Number (PAN) are currently subjected to a higher rate of TDS. However, amendments to relevant provisions will allow that on furnishing of alternative documents, such higher rate will not apply. The facility for revision of return hitherto available to service tax assesses only will be extended to the Central Excise assesses also.
The Budget proposed additional options for reversal of input tax credits with respect to non-taxable services provided by banking companies and financial institutions, including Non-Banking Financial Companies (NBFCs), by way of extending deposits, loans and advances.
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The Centre has taken steps to reduce the cargo release time and transaction costs of EXIM trade. Jaitley also proposed to amend the Customs Act so as to provide for deferred payment of customs duties for importers and exporters with proven track record.
Indian Custom's 'Single Window Project' would be implemented at major ports and airports starting from beginning of next financial year. Also, customs baggage for international passengers are simplified as filing of baggage declaration will be required only for those passengers who carry dutiable goods.