CA Umesh Sharma
Arjuna (Fictional Character): Krishna, on 26th January, India celebrates its Republic Day. On this Republic Day the President of the United States of America Mr. Barack Obama will be the guest of honour. On this day India’s unity and strength is demonstrated by the Army, Navy and Air Force in the grand Parade along with the exhibition of various diverse states of India. On this occasion please explain how Indian Taxation System’s, unity and strength can be demonstrated, so that people get aware of Law. I.e., how a ‘Tax parade’ can be enjoyed.
Krishna (Fictional Character): Arjuna, this day brings about an enthusiastic and patriotic environment all over India. On this day the highly Disciplined Army Parade will be experienced. If we correlate it with Tax Parade, then in this, the demonstration of Strengths of Central and State in form of Army, Navy and Air Force will be very knowledgeable, as both are necessary to build a Nation. The Diversity in India means various Taxes; Unity means all Taxes adhering to The Constitution of India, and Indian citizens paying taxes and following the law is the Strength. Then let’s have a look at the Parade of Taxes at Rajpath, which is epicenter of republic day celebrations of India.
Arjuna: Krishna, which department will get the distinguished first position in the “Tax Parade”?
Krishna: Arjuna, in India, the largest revenue generating department will be honored with the first position. And that will be the Income Tax Department because in the financial year 2013-14 the Income Tax Department has collected approximately tax amounting Rs. 6,38,490 crores. This Income Tax Department comes under the purview of Central Board of Direct Taxes (C.B.D.T.) and will be headed by Mrs. Anita Kapur, the Chairperson of CBDT. “Kosha Moolo Dandah”, the moto of the department, will be depicted on the Flag of this department in the Tax parade. The Income Tax Department has in their force near about 34,900 employees. This department manages Income Tax Act, Wealth Tax Act, Gifts Act, Interest Act and Expenditure Act. The Taglines of this department which are flashed in Parade through banners are “YOUR TAXES…..will build a skilled and self-reliant nation”, “Fill Correctly File Timely”, “Does Your Heart beat for the Nation”, which helps to create awareness among the taxpayers about Income Tax. If Taxpayer fails to follow the laws then Income tax Department has many weapons like Survey, Raid etc which are also showcased in Parade as arms and ammunition. Using these weapons the Income tax Officer may penalize the Taxpayer with Fines and Penalty. This department has very obedient, disciplinary force but the Officers of this Department appear in very simple uniforms. People look upon this department with respect and fear. Income Tax department may be correlated with the Army.
Arjuna: Krishna, who will be honored and lead after Income Tax department?
Krishna: Arjuna, The largest revenue generating department after Income Tax is of Customs. This department in the Financial Year 2013-14 has collected approximately revenue amounting to Rs. 1,26,285. The Customs Department comes under the purview of Central Board of Excise and Customs. This Department will be led by its Chairman Mr. Kaushal Shrivastava. The Motto of “Deshsevarth Karsanchay” will be flashed on the Flag of this department in this Tax parade. The Customs department manages the tax related matters on Imports and Exports. They use the Weapon of Imprisonment if they find any trespassers on the Indian land or in Indian Territorial Waters or the boundaries. Customs department may be correlated with the Navy. The Customs department is deployed at Borders of India. The officers of this department are marching and look smart in their White Uniforms in this Tax Parade.
Arjuna: Krishna, who will lead next in this Tax parade?
Krishna: Arjuna, after Customs Department there will be Parade of the Excise Department because this department has collected a revenue amounting approximately to Rs.1,18,405 crores in the Financial Year 2013-14. The Excise Department also comes under the purview of Central Board of Excise and Customs. This Department will also be led by CBEC Chairmen Mr. Kaushal Shrivastava. The Motto of “Deshsevarth Karsanchay” will be there on the Flag of this department in this Tax Parade. There were 19,137 no of Gazeted officers and 53,754 Non- Gazeted officers in both Cutoms and Excise Department who are marching ahead in parade. This Department handles the taxes related to Manufacturing. They use the Weapon of Imprisonment if they found a person eligible for punishment under the Excise Act. Some of the officers of this department are in Khaki uniforms. Excise department maybe correlated to the Air Force. They precisely target the Excise duty evaders.
Arjuna: Krishna, who will be honoured after this department?
Krishna: Arjuna, after Excise Department there will be Parade of the Service Tax Department because this department has collected approximately a revenue amounting to Rs.110, 313 crores in the Financial Year 2013-14. The Excise Department comes under the purview of Central Board of Excise and Customs. This Department will also be led by Mr. Kaushal Shrivastava in the parade march. This department uses the taglines like, “Remember non deposit of Service Tax collected from Service Receivers is a punishable offence”, “Paying your Service Tax helps the country grow” to create awareness amongst people and the same is reflected in their banners flashed in the parade. If the Taxpayer has not paid the Service Tax for an amount exceeding Rs. 50 lakhs, then the Service Tax Officer has the right to impose Fine and Imprisonment on such Taxpayer which is the decisive ammunition of the department. Service Tax department maybe correlated to the Special Regiment. This small but very effective department is very prominent in this tax Parade.
Arjuna: Krishna, who will lead after this department?
Krishna: Arjuna, Sales Tax Departments of various States follow next. Amongst all states, the state of Maharashtra will be leading because Maharashtra comes first in all the states in collecting the highest VAT revenue. This department has collected a revenue amounting to approximately Rs.62, 202 crores in the Financial Year 2013-14. In this parade, this department will be led by commissioner of Sales Tax Mr. Rajiv Jalota. The tagline of this department is “Our Taxes for Our Nation” which is flashed on their banners. This department has 9,842 number of employees as its force. VAT department maybe correlated to State Police. The important weapons of this department are Annexure J1 and J2. Thereafter, the VAT departments of various states follow in the Tax parade which seems to be a long march. Hence, we end the discussion on the parade here.
Arjuna: Krishna, what should the taxpayer learn from this “Tax Parade”?
Krishna: Arjuna, the Army protects India so that the citizens can live peacefully, likewise the Tax Department protects the Laws of the Nation so that the financial position of citizens improve and the economy can prosper. This Year on the Republic Day we saw the “Tax Parade” of various Taxes; in next year let’s hope to watch a grand and splendid “Tax Parade” of the Goods and Service Tax (GST) and Direct Tax Code (DTC).
Dear Tax guru lovers, your comment please, as they are very valuable and precious.