A few 'Tax Tips' to improve 'Ease of Doing Business' in India

I always look forward to your column. Suggestions made are really doable. Expect something on the Indirect Tax front as well. There are number of areas which irritates the tax payers day in and day out. We can say there is no system which facilitates the tax payer much. ACES is incomplete to the large extent.
1. PAN is granted by income tax department without physical verification etc but registrations under excise and service tax are subjected to physical checks/verification. I would suggest automatic issue of certificate, once all the required documents are uploaded on the ACES with the online application.
2. Revision of excise return should also be allowed on ACES
3. Monthly ER return for inputs and annual input return should be done away with as no purpose seemed to has been achieved. ER-1/2 can be modified for incorporating some info. regarding principal inputs etc.
4. Once ER-1 and Annual Financial returns are filed - there should not be any further requirement of all these documents by the audit department. They must take this data from ACES and prepare risk profile to determine the audit requirements.
5. Mechanical audits should be stopped. There must be real risk review which should be sent to assesses in advance.
6. Field staff should be tasked to identify and locate non-registered as a KRA.
7. Return period should be aliened for excise and service tax as far as their periodicity is concerned i.e. both should be six monthly or yearly.
8. Proof of export should be automatic by aliening ACES and ICEGATE/EDI system.
9. Export rebate should be made automatic through ICEGATE/EDI system.

Hope you will certainly add some more realistic views besides aforesaid.

Arbind Aggarwal
(Views are strictly personal)

Arbind Aggarwal 15/01/2015