Last Year, The CBEC, had planned a Third Party Information System (TPIS), a third party information model for excise duty. Now CBEC requires to reproduce the trials with service tax. As per board, it is a very effective and non-intrusive set up to obtain all apposite data to trap the tax evaders.
The CBEC has prepared with its proposal to launch a third party information system to tackle service tax evasion. The sources can be data of.
The TPIS, is used by just about every country to monitor tax evasion. It was first introduced by the CBDT in the form annual information return (AIR). AIRs are filed by mutual funds, credit card issuers, property registrars. They provided the information in AIR, who have settled transactions above the stipulated threshold.
All transactions reported to CBDT is mandatory by these third parties. Then, this information is matched with a taxpayer’s income.
The department projects to make it mandatory for power companies and transport operators to share such information. Depending on its effectiveness, a similar system may be designed for service tax later.
“The department will be competent to better tax submission. Assessees will also embark on paying taxes willingly, once they realize that the department is checking up on them through other sources,” .
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018