TIOL-DDT 2913
19 08 2016
Friday

CAN we have more taxation and less taxmen? It is estimated that 92% of the taxes just flow into the treasury not because of the tax officers, but in spite of them. It is for collecting that 8% that we have so many raids, summonses, inspections, audits, arrests, show cause notices, prosecutions, orders, appeals and more appeals.

Can we think of a tax system with a bare minimum tax officers who are often an impediment to business and at best are a nuisance?

When we are talking of a new revolution in taxation in the country with the probable launch of GST, shouldn't we also think of an administration with few officers and more taxes? When there is so much talk on subsuming of several taxes, should we also not talk of subsuming various levels and shades of officers into one GST service?

It would also be a good idea to hand over GST to a totally new department which has absolutely no experience of collecting taxes - the Department of Official Languages may be a good choice - that is one department where the officers don't throw their weight around.

At present a Central Excise and Service Tax assessee has to bear the burden of officers at the level of Inspectors, Superintendents, Assistant Commissioners, Deputy Commissioners, Joint Commissioners, Additional Commissioners, Commissioners, Principal Commissioners, Chief Commissioners and Principal Chief Commissioners at the field level, with no clue as to what all these Commissioners are doing and the hierarchy about which the babus are very fussy. If you call a Deputy Commissioner an Assistant Commissioner, you have had it. One day you find the Division is headed by an AC and the next day you meet somebody else who says he is a DC. You meet a Principal Commissioner who says that he is also a Chief Commissioner and you meet another Principal Commissioner who says he is also a Commissioner. And all of them believe that they are engaged in the noble act of collecting taxes. You pay tax and they take the credit.

There is also the Audit wing of the Department as well as the CAG who make their seasonal unwelcome visits to your premises and ensure loss of peace for the next decade. There are more unwelcome visitors from the Preventive wings from the Commissionerate and the Director General, Central Excise Intelligence. You are expected to work to the satisfaction of all these officers. They can disturb you, they can destroy you. They can visit you at their pleasure, they can summon you and make you wait in their offices for hours and days together. They can ask you for any number of records including copies of your registration, returns and other documents which are already with them. They can take away your records and computers and never bother to return them even after their investigations are over. They can freeze your bank accounts, attach your properties and even arrest you. They can coerce you into giving statements in which they will make you write that the statement is given out of your own free will after you were hit by a bout of conscience. And the courts will say, the statement is evidence, while the departmental officers would say it is un-rebuttable proof. All these for the 8% of the total tax collection.

Will GST change the situation? Will the Central GST Offices sync with the State GST Offices? As of now in a State you have about 10 Commissioners/Principal Commissioners of Central Excise/Service Tax with a Chief Commissioner/Principal Chief Commissioner and the State VAT department is headed by a one single Commissioner. Maybe the Centre should also follow the State Model and there should be only one Commissioner for one State. Maybe One Commissioner for both CGST and SGST. Let it be ‘One State, One Tax, One Commissioner.' In fact, there should be equal number of posts in each grade in the CGST and the SGST and preferably, they should sit in the same office.

If the GSTN is really going to be all that IT efficient that it is hoped to be, perhaps 98% of the taxes will be collected without interference by the officers. Then you really don't need this army to collect the 2%.

Taxpayers may not really mind paying the taxes; what really worries them is complicated compliance and offensive officers.

Let us have more taxes, not more taxmen.

Timely and proper disposal of public grievances is one of hallmarks of good governance and CBDT must strive to accomplish this - CBDT Chief

THE CBDT Chairperson, Ms. Rani Singh Nair has in a D.O. Letter to all the Principal Chief Commissioners and Directors General says,

- Timely and proper disposal of public grievances is one of the hallmarks of good governance and CBDT must strive to accomplish this within the timelines laid down by the Government.

- As on date there are 3738 CPGRAMS grievances pending out of which 1073 grievances are overdue i.e. pending beyond the prescribed period of 60 days for disposal. They include 4 grievances which are overdue beyond 1 year, 137 grievances overdue beyond 6 months, 390 grievances which are overdue for a period between three to six months and 542 grievances pending over 2 months to 3 months.

- As per the Central Action Plan 2016-17, it was communicated that all public grievances pending as on 30th April, 2016 were to be disposed of by 30th June, 2016.

- It is regretted that the Officers have not disposed of such grievances within that timeline.

- A review of status of public grievances may come up in the next PRAGATI interaction to be held by the Hon. Prime Minister on the 24th August, 2016.

- It may be ensured that all grievances pending beyond 60 days are disposed of expeditiously.

- The number of grievances pending beyond 6 months should be brought down to zero before 24th August, 2016.

Maybe the CBEC is too busy with GST that they do not have any programme of disposal of grievances.

Please also see DDT 2782, 2804, 2821 & 2831.

CBDT Chairperson's D.O. No. Dir.(Hqrs)/Ch.(DT)/39(2)/2015/244513., Dated August 17 2016

New Exchange rates From Today

CBEC has notified new exchange rates for Imported Goods and for Export Goods with effect from 19th August 2016. The USD remains at 67.75 for imports and 66.05 Rupees for exports.

Notification No. 112/2016-Cus (NT)., Dated: August 18, 2016

Until Monday with more DDT

Have a nice weekend.

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