LETTER [F.NO. TARC/MEETING/1/2013-14], DATED 24-12-2013
Government has set up Tax Administration Reform Commission with a view to reviewing the application of Tax Policies and Tax Laws in India in the context of global best practices. The Commission will work as an advisory body to the Ministry of Finance and recommend measures for reforms required in Tax Administration to enhance its effectiveness and efficiency.
2. The Commission has identified the following four points in its Terms of Reference to be included in its first report, which is to be submitted to Government within six months:
a. To review the existing organizational structure and recommend appropriate enhancements with special reference to deployment of workforce commensurate with functional requirements, capacity building, vigilance administration, responsibility and accountability of human resources, key performances indicators, staff assessment, grading and promotion systems, and structures to promote quality decision-making at high policy level.
b. To review the existing business processes of tax administration including the use of information and communication technology and recommend measures best suited to the Indian context.
c. To review the existing mechanism of dispute resolution, time involved for resolution, and compliance cost and recommends measures for strengthening the process. This includes domestic and international taxation.
d. To review existing mechanism and recommend measures for improved taxpayer services and taxpayers education programme. This includes mechanism for grievance redressal, simplified and timely disbursal of duty drawback, export incentives, rectification procedures and refunds.
3. The Commission has decided to visit major stations across the country for holding consultations with stakeholders including industry associations/ chambers and professional bodies. Second such consultation with industry bodies is proposed to be held in Mumbai on 22nd, January, 2013.
4. The Commission shall be grateful if you participate in the meetings and provide inputs/suggestions on the tax administration issues as mentioned in paragraph 2 above. It would be highly appreciated if three members from your association – one from industry and one each from direct and indirect tax side, from your core Committee on Taxation attend the meeting.
5. Kindly note that the focus of the Commission is on tax administration reform and not on the general tax policy and legislation. Therefore, the participants may be requested to confine themselves to issues having a bearing on tax administration as in paragraph 2 above.
6. Venue and time of the meeting is as below:
Babubhai Chinai Committee Room
2nd floor, IMC building, IMC Marg
Churchgate, Mumbai- 400020
Tel : 022-22046633
Time : 10.00 AM to 1.00 PM
7. You may kindly confirm your participation to the undersigned on email ID secy-taryc@tarc.in. For any information in the matter, you can call me on the above phone number. You can also confirm your participation to Mr. Upendra Shah, Director (Finance), IMC, Mumbai on 022-22046633.
8. It would be helpful if you can send your suggestions in advance by e-mail by 15.01.2014.
Sanjay Kumar
Secretary, TARC
HOW TO ENHANCE ECONOMY WITHOUT INVESTMENT OF OTHER DEVELOPING NATIONS
Ref -Suryakant Srichandan -08/11/2014-Rev0
To,
The honourable finance minister Mr. Arun Jetly of my beloved country Bharat
Dear Sir,
I always thinks of some things with which my countrymen will be prosperous without any foreign
assistance..I was thinking of giving some Suggestions which I was thinking for years ,but finally I decided to convey my suggestion to you.
The idea is at least a family has the right to live in the lower middle class catagory .For that now a days
a family of six members (husband ,wife, two children & their old parents) requires at least Rs=40,000
per month in which they can live with some comfort .What the things they require for their day to day life
(house, food, education, vehicle, t v , mobile, computer, etc which are not high-tech things which we
do not require foreign assistance. The way we require is to engage our people in different sectors in
Proportion manner which the sector needs. We have to define the requirement of people to be engaged
which can be understood from my below explanation.
How lower middle class family spends their income for their day to day life.
These are my roughly assumption. .
S/No Ways of spending Rs/ month % of earning % in Sector wise
1. Housing 8,000 20 Infracture 15%/mfg 5%
2. Fooding 10,000 25 Agriculture 20%/ mfg2.5%/service 2.5%
3. Medical 2,000 5 Service 3%/ mfg 2%
4. Clothing 2,000 5 Mfg 4%/service 1%
5. Education 5,000 12.5 Service 6.5%/ mfg 3%/ infra 3%
6. Transportation 5,000 12.5 Mfg 8%/ service 4.5%
7. Gadgets 2,000 5 Mfg 2%/ service 3%
8. Bills (electricity,telephone,tax,water) 4,000 10 Service 4%/ mfg 3%/ infra 3%
9. Tour for enjoyment 2,000 5 Service 2%/infra 2%/ mfg 1%
Total 40,000 100
Dividing the expenditure with sector wise
S/No Sector wise % of expenditure in sector wise
1 Agriculture 20
2 Infracture 23
3 Mfg 29.5
4 Service 26
So to balance the whole population income ,the whole population should engage as per the expenditure of the family.
The reason of poverty is the imbalance of population engagement in different sectors.
60% of population is engaged in agriculture, if a lower middle class family spends 20% of its income for agriculture, then how can these 60% people will be well placed. So we have to tackle the agriculture sector with first priority. We have to bring down these 60% people working in agriculture sector to 20%. Then the other sector afterwards.
The farmers are growing individually as per their experience & suitability but not in proper ways.
The drawback of present agriculture systems
1) The farmers are growing the different crops in their small land .
2) The whole cropping process is manual.
3) It require huge manpower to grow the crop
4) There are so many varieties of crops are growing nearby.
5) The farmers have to use so many types of pesticide for different type of crop.
6) They do not spray pesticide at time the whole area.
7) So the insect crosses to the other cropping area for escape.
8) Then return back when the intensity recedes, then they come back
9) So the farmer again sprays pesticides.
10) In which the crop endanger our life.
11) Day by day the labor charges increases.
12) The cost of crops grows drastically.
13) Suppose some time market price of one crop goes up ,then next time many farmer
grows the same crop .
14) In which next time the market value drastically come down due to surplus crop.
15) The farmer faces the huge loss.
16) As the cold storages are far away the crop faces damages & transport charges.
17) Different yield crop & different quality faces storage problems.
18) The farmer does not afford the low quantity of yield crop to market it thru transport.
19) So the middleman take advantages of this problems
20) In the process the farmer & the buyer suffer hugely comparable to middleman.
THE PLAN TO UPLIFT THE AGRICULTURE SECTOR
1) The agriculture area of some villages should be clubbed as one crop area.
2) The different villages should be clubbed as different crop area.
3) This crop area should be managed by corporate house / cooperative society
.
4) The processing /storage unit should be set up in that area.
5) The agriculture process should be modernizing with optimum utilization resources.
6) Everything should be done by machine
.
7) Minimum utilization of fertilizations & pesticide should be used .
8) The crops will be stored nearby storages specially for the specified crop
.
9) Processing unit will process the require quantity of the crop.
10) Rest crop will be marketed to the nearby villages & towns.
11) Similarly the diary system will be done in this manner.
12) The large quantity cow dong gas plant will solve the cooking gas problem.
13) The entire villager will be engaged for different sector in the village area.
14) They will not migrate to the town which is harming our eco system.
WHAT IS THE MAIN HURDLE TO IMPLEMENT THIS IDEA
1) How to get the entire land of so many villages together with the consent of all villagers.
2) From where the money will come .
3) How the Infracture will be developed.
4) How to distribute among the villagers.
1 (How to get the entire land of so many villages together with the consent of all villagers)
We have to set one land bank for the villagers’ assurance. The function of land bank will be club the entire land just like the people deposits money In the bank the people will deposit the land papers in the banks & the bank will assure the villagers as they assured the money which they deposit in the bank, for that they will get the minimum return as interest .Then they will get the profit after the harvest as per their land proportion. If someone wants to sale the land, the land market price will be given to the villager by the bank which will be auctioned among the villagers. The bank does not need any money for that. I think this idea will suit to the villagers.
2 (From where the money will come)
The money will lend by the corporate houses, share market or banks
3 How the Infracture will be developed.
The Infracture will be developed by agriculture university.
4 How to distribute among the villagers.
The profit will distribute among the villager according to their land share.
We have to ensure the 20% of the villagers should be engaged in agriculture by automation. Rest of people will be engaged according to the specified sectors.
This agriculture reforms should be started as a pilot project .Then it should be expanded
gradually .I am 100% sure this reform will work successful which will reduce 60% work force to less than 20% & the rest 40% will be engaged in other sectors which is essential for the growth of country.
Then the government should focus only on Infracture (such as road , port, electricity, defense, & policy making for these sectors which can be achieved when every people
will give tax to the government. I am talking every people means from bottom to top.
When they are buying not filing the present tax system which are tedious & a lot of people are engaged in this non productive sector & they are wasting their valuable time.
The government need not bother about other sector which can be handle by private company, for which they are capable of doing it.
HOW THE GOVERNMENT WILL GET THE MONEY TO DO FOR THE INFRACTURE SECTOR
The corruption is the main reason for the government which unable them to collect
tax. People are investing hugely in ugly manner in different manner such as (land, gold,
cash, property & stashing our money abroad). The only way to check is to abolish
the cash transaction system to a minimal. The corruption will go automatically when
people will use debit card system. There will be zero corruption. The government should not worry about inflation, price rise. All will be stopped if every body uses debit card.
The country will be call as heaven, heaven means where all things happen in transparent
manner.
The government should reform the tax system which is essential for the development
of the nation. Every people of the nation should pay indirect tax not the direct tax.
All people should buy thru card only, which will be possible as per your jandhan yojana.That time the minimum amount of tax will be automatically deducted from the buyer , the amount will be decided by some panel of expert. Money should not be used , except some exceptional cases for which the buyers have to pay more they used thou card. The buying amount should be decided by some panel of expert. Forget about poor or rich all are the proud person of the great nation. If the people will be engaged in proportionate to the sector wise all people will be in a condition of giving tax to the
nation, because they will be at par with other people.
I have one suggestion for tax reform which we are facing a lot as I am doing automations for Other industry without any office assistance. I am one man army doing every office work. I am giving more money to consultant than giving tax to the government which
hurts me a lot.
WHAT SHOULD BE THE TAX STRUCTURE
1) When somebody is billing for some item at that time every tax including income tax should be added to that to avoid hassle in later ward. He has to keep the records & appoint one consultant agency to calculate everything & manipulate the system to avoid the tax to pay
for country. Every small industry pay more for to the tax consultant than they pay tax for country, in which the country suffers a lot & the industry people spends fear full life as they are criminals. To avoid such things I am giving some example which will increases the tax for the country & saves the industry people.
THE EXAMPLE .
Suppose somebody making a bill for its item
The mfg cost + profit =Rs 100
The other taxes he should add are
1) Local body tax=2%% (actually the local body will get more than 3 % as he also give 2% tax to the material which he procures as local body tax)
2) State tax=6% (actually the state will get more than 10 % as he also give 6% tax to the material which he procures as sales tax)
3) Central tax =3%% (actually the centre will get more than 5 % as he also give 3% tax to the material which he procures as central tax)
4) Income tax=1% (actually the centre will get more than 1.5 % as he also give 1% tax to the material which he procures as income tax)
The total billing will be Rs=100+2+6+3+1=112
That tax will be deposited at one window which will be sales tax under state govt.
From there the amount of tax will be distributed among the different body.
This system will enable the industry people heavy relief of maintaining of tax structure
& the government agency should not keep tax collecting People & divert them to other productivity works which will save the huge amount of money for the country.
The tax collection will be at least 50% more than the present system. The work force in the present non productivity works for taxing system will be diverted to productivity works for the
If we implement this system then everybody from top to bottom will automatically give
the tax to the government which will benefit to the nation a lot.
To
The Hon’ble Finance Minister
The Government of India
New Delhi
Sub: Request to remove hurdles in filing of income tax returns/ service tax
Respected Sir,
I would like to draw your kind attention towards some hurdles coming in the way of filing of income tax returns due to which more time and energy is consumed and it also increases the cost of return filing unnecessarily.
1. Digital Signature (DSC) : Many assesses are required to file their returns mandatorily electronically with digital signature. I feel that that there is no much need of DSC but this provision was brought by the Congress Government to give benefit to some business houses. DSC is available in the market only for two-three years validity and after that every assessee has to apply afresh to the service provider. For this purpose he will have to collect all the required documents and have to pay fees every time. Purchasing DSC after every two or three year is a cumbersome and time consuming process and it also increases the cost of return filing unnecessarily as now the cost of DSC with token is more than Rs. 1500/- per two year.
Suggestion:
(i) The requirement of DSC should be removed to ease the work of return filing.
(ii) Or it should be a onetime process.
(iii) It should be provided by the government free of cost.
(iv) Or its price should be fixed by the Government like fees of PAN Card and TAN Card.
2. Providing e-mail ID and Phone Number: In one side the government is promoting and motivating the people to file their returns electronically and on the other side the government is putting hurdles or making the things complex. Sir, it is an absolute truth that most of the assessees file their return through their consultants either Advocate or CA or Tax Practitioner as they do not have the skill and do not have the computer, internet connection and also they do not know how to operate and therefore most of the individual, HUF, AOP, Partnership tax payers do not have their own e-mail id’s. Hitherto their tax consultants were providing their own id’s in the ITR or clients profile but now the department has freezed the operation and made it compulsory that one ID and one Mobile Number cannot be used for more than four clients. It means every assessee will have to give their own ID and mobile number in spite of the fact that they do not have. Sir I do not know why it has been made mandatory when the work was going on smoothly without this condition hitherto.
Hon’ble Sir, this requirement will make the things unnecessarily complicated. Sir it will not solve the purpose that every assessee should have his own ID’s because all the small assessee’s who do not have the basic infrastructure will ask their consultants to create email ID’s for them and file their return. So the consultants would create ID’s for all assessee’s and will note down the e-mail ID’s of each client with user ID and password. It will make the task difficult for the consultants to have record of email ID and password of each client and it would not be practicable for them to check the emails of each client on regular basis to see the communication made by the department. So all these exercise will be a useless and futile exercise and the motive of the department will not be achieved. This requirement should be dispensed with and the earlier position should be restored.
This requirement should be optional or it may be made compulsory for those assessee’s whose total income exceeds Rs. 50 lakhs.
3. TDS & Refunds: Hon’ble Sir, the online processing system was introduced to speed up the processing of returns and to eliminate the grievances regarding delay in refunds but now the CPC is also holding the refunds to maintain their figures like manual system. Sir, the process should be speed up. Sir, the refunds are mainly because the cut off limit fixed for tax deduction under different section is too low. These limits should be reviewed and should be increased to reduce the refunds.
4. Service Tax : Hon’ble Sir, the threshold exemption limit of Rs. 10 lakhs provided in service tax is a just an airy appearance, illusionary, a phantom; a fancy or a dream. The benefit of this exemption is not available to everyone and for every year. It is available only in the first year and in next year this benefit is not available if the turnover in the preceding year exceeds Rs. 10 lakhs. There is no use of this exemption if it is only for once. Hon’ble sir I give following suggestion in this regard:
i) The threshold exemption limit should be increased at least to Rs. 25 lakhs to relax the small service providers as the threshold exemption limit of Rs. 10 lakhs is too low.
ii) The provision for threshold exemption limit should be amended so as to provide it as a basic exemption limit meaning thereby that service tax liability should attract only on the turnover which exceeds this limit unless service tax is being collected by the service provider since beginning.
I hope that your honour will consider and solve the above problems.
With Regards
Yours sincerely
CA Pawan Kedia
Jhunjhunu
(a) Section 115BBE should be amended so as to include therein reference of section 56(2)(vii)(a)of the Act also in order to plug the loophole of taking advantage of slab benefit by surrendering bogus gift exceeding Rs 50,000/-
(b)Interest pertaining income from other sources is being shown as business income in order to take the advantage of set off of brought forward losses. This loophole needs to be plugged in
most pensioners depend upon interests on bank and other deposits and the tax on net taxable incomes comes below the TDS paid. Legally they cannot give 15H form. TDS collected by banks and others invariably is not reflected correctly in 26AS form which the IT officers depend upon. So for senior citizens TDS should NOT be collected.
Voluntary compliance scheme for incometax, excise, wealth tax without interest and penalty should be bought . . .
I think , it should also get response like vces of service tax and addiomal revenue will flow to government
Thanks