Can Budget find ways to tackle tax disputes? India Inc is waiting

A robust dispute settlement system would help the government unlock tax revenues, and also aid ease of doing business

After rationalisation of the corporation tax rates, India Inc is looking at the upcoming Budget for a blueprint of a credible dispute resolution system that proactively addresses ways and means to avoid tax disputes and litigation. In case of a dispute, what businesses look for is greater certainty in the mechanism for out-of-court settlements and a time-bound litigation process.

By the end of the reporting year 2017-18, taxes pertaining to income, services, and excise locked up in disputes were pegged at Rs777,322 crore. The maximum number of cases (70 per cent) is stuck in litigation with the Commissioner of Income-Tax