The Union Cabinet today approved the proposal for setting up of the Tax Administration Reform Commission (TARC).

The Commission will consist of a Chairman, two full time members and four part-time members, of which at least two part-time members will be from the private sector. The Chairman will be an eminent person having wide experience of tax administration and policy making. Full-time members of the Commission will be one member each with a background in revenue service pertaining to Income Tax and Central Excise and Customs respectively. The term of the Commission will be 18 months.

The Commission will review the application of tax policies and tax laws in India in the context of global best practices and recommend measures to strengthen the capacity of the tax system in India that would reflect best global practices. The Commission will help in removing ambiguity in application of tax policy and tax laws, thereby establishing a stable tax regime and a non-adversarial tax administration. The Commission will facilitate an efficient tax administrative system that would enhance the tax base as well as tax payer base.

Background :

In his Budget Speech 2013-14 in Parliament on 28.02.2013, the Finance Minister had announced :-

“An emerging economy must have a tax system that reflects best global practices. I propose to set up a Tax Administration Reform Commission to review the application of tax policies and tax laws and submit periodic reports that can be implemented to strengthen the capacity of our tax system.”

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0 Comments

  1. S PRAKASH says:

    Sir,

    Establishment of the Tax Administrative Reforms Commission is good news.
    Kindly try to understand the practical aspects and gross root problems of the assessees and the tax administrators. For example take Tumkur:-

    1. ONE DC- One DC on deputation One Inspector on deputation and one steno.
    2.ITo 1st Ward- One ITO, One Inspector and ONE PART TIME CLERK.
    3.ITO 2nd Ward- Onre ITO, One Inspector and ONE PART TIME CLERK.
    4. ITO – TDS- One ITO and One inspector.
    5.TRO- One ITO.

    This is the administrative set up at Tumkur.How can they handle the scrutiny, rectification, survey, collection of intellegence information, taking action on AIR information, action on CIB information and other routine office maintainence and sending of timely reports etc., Because of this theTUMKUR is suffering and only the TAX PAYERS ARE PAYING THE TAX, THE CREAMY LAYER OF TAX EVADERS ARE STILL IN THE DARK IN THE EYES OF THE INCOME TAX DEPARTMENT.Any number of requests made to the CBDT has been overlooked and TUMKUR tax payers are fedup with the system of income tax.How one TDS ITO can handle all the TUmkur Dist., TDS collections and due to my recent comment about that the TDS has yielded a good revenue to the department.The TDS defaluters like PWD, Muncipal Council, Zilla panchayat and other Government offices has been surveyed and defaults which can not be imaginable and not capable of rectifiction has been found out by the TDS ITO.
    Under these circumstances kinldy use the oppertunity of administrative reforms in the right way and yield revenue to the government.
    thanking you,

    S.PRAKASH

  2. S PRAKASH says:

    sir,
    Can the tax payers expect a better administration from the setting up of the Tax Administration Reform Commission?Because the Tax administrators will care even for the Court corders or ITAT orders, i.e., judicial orders, in that case how one can think of the better administration from a non-judicial commission?The Finance Minister is changing as per the global best practices in taxation law, but the mind set of the officers who are administrating the TAX LAW has not changed till date.The interpritation,understanding,analysis of the law and facts are not being done by the administrating officials in implimenting the law and passing the orders.Just take the example of the 44AB it self.Is the administration has thought of the cost inflation index in fixing the limit for the 44AB audit?Present day business practices and so on.

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