CA Sandeep Kanoi
Apex body for Accounting in India Institute of Chartered Accountant of India (ICAI) has suggested to the government in its pre-budget memorandum that no targets should be set by the Department for collection of taxes. In fact, internal mechanism is to be developed to ensure adherence of the timelines mentioned in the Citizens charter of the Department with regard to performance of services and adherence to the timelines should be made as a part of performance appraisal of the concerned.
Extract From ICAI Pre-Budget Memorandum
Targets collection taxes-Not essential
Issue/Justification
India adopts a progressive system of taxation where the tax rate depends on the level of income earned during a financial year. Taxes paid by the taxpayers are utilized for the betterment of the nation as a whole. Since a majority portion of direct taxes is paid to the credit of the Government through TDS and advance tax, the possibility of evasion of tax gets meager in the private sector. Also, today the assessee wants to voluntarily comply with the existing laws to avoid any hassles. In such a scenario, it is difficult to understand as to why targets are set for Assessing Officers for collection of tax. The Government is not a profit making organization. It is belongs to the people of India, works for the people and is formed by the people of India. In order to achieve the yearly targets, all means, fair and unfair, are being adopted. There have been instances which have been reported to us as to how, in order to complete targets the genuine assesses are being harassed. This creates an unhealthy environment. One cannot enforce on collection of taxes when there is no income and then the taxpayer has to go round and round to get a refund of the extra taxes paid by him.
Suggestion
Since a majority portion of direct taxes is paid to the credit of the Government through TDS and advance tax, it is suggested that no targets should be set by the Department for collection of taxes. In fact, internal mechanism is to be developed to ensure adherence of the timelines mentioned in the Citizens charter of the Department with regard to performance of services and adherence to the timelines should be made as a part of performance appraisal of the concerned.
TAXWLL SIR,
ROAM AROUND MINISTRY & GOVT. DEPTT. WITH THE BAG CA CERTIFICATES IS THE ONLY JOB OF ICAI (Financials), THEN HOW COME THEY ARE CONCERNED ABOUT GOVT. REVENUE. ICAI (Financials) NOT EVEN 1% CONCERNED ABOUT INDIA. THIS IS SELF EXPLANATORY FROM THE EAGLE EMBLAM OF ICAI (Financials). IN SPITE OF KNOWING THIS VERY MOTTO OF ICAI (Financials), I DO NOT UNDERSTAND WHY MINISTRY OF FINANCE HEAR ONLY THE VOICE OF ICAI (Financials), NEGLECTING THE GENUINE VOICE FOR CAUSE OF NON-TAX TAX PROFESSIONALS & GOVT. REVENUE.
I fully agree with the views of ICAI. Govt of India or the CBDT is not a trading/manufacturing entity like a corporate/business entity wherein the company wants to better its performance year by year and therefore sets for itself the sales/turnover targets. The CBDT is a part of the Govt entrusted with collection of taxes as has been discussed by ICAI above and it can merely make an estimation of the total collections feasible for a given period taking into consideration the overall health of economy, the GDP and growth factors. It can merely modify the estimates based on the changes in the state of economy as the year progresses. Setting of higher targets in tax collection based on previous period collections is laughable!
This Govt. should stop squeezing the salaried group & target the business group.There are business people, showing fake expenses and reducing their taxable income. There is no such provision for salaried class. I also personally request as a citizen of India, to Income tax dept, to give a annual report showing yearly collections & expenses made.How are the advance taxes,TDS,Self asst.tax, etc taxes utilised for people betterment?
India is said to have one of most complex laws, but still our nation is a developing economy.WHY ?
ICAI also unable to see that their members are benefited , only members in council ( be it may in Central and regional councils ) They are unable to make understand to the different regulators —- only big lectures etc. Members at their own have to procure clients , nurse them well and get some remuneration for the services .
CA, Subhash Chandra Podder , FCA
Kolkata
08/06/2014
I think Taxwell has not understood the issue properly. Nobody can say that money is not important for Govt. It is a fact that to meet with targets given to Commissioners, they adopt various illegal and unethical means to artificially increase collection of taxes like withholding refunds, delaying assessments involving refunds. Same is with indirect taxes like Customs, excise & service tax. Officers delay payments like refunds, rebate & drawback on one hand and force the assesses to pay more tax, pay Excise duty in cash instead of debiting CENVAT credit account. Such steps adversally affect growth and development of industry and the nation as a whole. All officials from top to bottom know this and that is why no action is taken if somebody cries fowl. Approacte instructions should be issued before November as these measures are taken from December till March end.
I THINK ICAI IS IN TENSE THAT MONOPOLY MAY GONE BY THEIR MEMBERS. THEREBY THEY R SAYING MONEY IS NOT IMPORTANT FOR GOVERNMENT.BUT ICAI MEMBERS POWERS ARE MORE IMPORNTANT. ICAI MEMBERS POWER SHOULD NOT BE AFFECTED. REVENUE OF GOVERNMENT MAY OR MAY NOT INCREASE. BUT ICAI WANT ALWAYS THIER MEMBERS BENIEFITS.