Arjuna (Fictional Character): Krishna, In India now Navratri will be celebrated. Bhagwadgita has narrated the importance of strength, worship, intelligence. In today’s world due to these occasions all gets a lesson of brotherhood and love towards nation. But in real sense when did todays taxpayer will become independent?

Krishna (Fictional Character): Arjuna, all feels proud to be Indian. Growth of the nation is carried out from the taxes collected from the taxpayers. For financial growth of the nation it is necessary to pay taxes. Taxpayer will have to pay his own taxes simultaneously taxpayer is required to pay taxes of the person with whom transactions were incurred. As if in “Navratri” while playing “Dandiya” aim is achieved by putting pressure on not only front foot but as well as on back foot simultaneously, then only you can play Dandiya gracefully.

Arjuna: Krishna, in Income Tax how other taxes were paid?

Krishna: Arjuna, Taxpayer will have to pay TDS as per provisions of Income Tax. It means while giving remuneration to other, tax is required to be deducted and deposited with the government. For e.g. Mr. A is doing job with Mr. B. then Mr. B will have to deduct the TDS while paying salary to Mr. A and deposit the same with the government. Further if the taxpayer did not deposit the TDS with the government on time then the taxpayer is required to pay interest on it. Further if taxpayer did not file TDS return on time then late filing fees will have to be paid. It means taxpayers will have to pay other taxes and he is also responsible to pay interest and late filing fees.

Arjuna: Krishna, in Goods and Service Tax (GST) how other taxes were paid?

Krishna: Arjuna, in GST as per provisions of Reverse Charge Mechanism taxpayer on various types of services received as per provision is required to pay GST of service provider. Further is GST of other is late paid then interest and penalty is also levied. For e.g. Corporate taxpayer will have to pay GST on transportation services received by it. Similarly the recipient of services of director, lawyer, security service, works contract service is required to pay GST.

Arjuna: Krishna, why one need to pay others taxes?

Krishna: Arjuna, due to collecting taxes from others in income tax and GST government can collect the taxes transaction wise. Therefore small amount of taxes were paid and at the end the burden of paying huge taxes reduces. Government and taxpayer receive the information of taxes collected and paid from 26AS. But taxpayer has to suffer from interest, penalty and late filing fees. I have paid my taxes and become independent this does not happen. Therefore taxpayer is not independent.

Arjuna: What one should learn on this occasion of Shri Krishna Jannamashtami?

Krishna: Arjuna, in life only looking at self doesn’t work. As in family others work is required to be done for growth of nation all will have to work and will have to help one and other. Government cannot work alone therefore taxpayer should follow its duty by considering all perspectives. Happy Jannamashtami to all.

Also Read- Why one who pays tax only suffers?

Click here to Read Other Articles from CA Umesh Sharma

Disclaimer: The contents of this article are for information purposes only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional.

(Republished with Amendments by Team Taxguru)

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March 2021