BE DEAR, CARE OR FEAR...

The government has set up a 10 member committee, headed by former Delhi High Court judge R V Easwar, as he is one of the best tax tribunal judges, to simplify and identify, among other things, phrases in the Income-tax laws that lead to unnecessary litigation because of different interpretations.

They will first try to simplify the tax laws for individual taxpayers who have to depend on expensive Chartered Accountants to file their returns. The Committee, which has to give its initial report by January 30, so that there is time for discussion and inclusion of some recommendations in the Union Budget.

The agenda for the committee is quite pervasive but one hopes that somewhere the committee will include accountability for tax officials. Today, it is the impression of the public and the tax-payers, that they are a law unto themselves; unless there is accountability, the reforms recommended could be derailed.

The FM has also announced steps taken for easier adjudication of disputes and has issued an ordinance for fast track arbitration procedure.
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There appears to be a growing gap between the adjudication decisions taken by different authorities for a similar issues at different places. Interpretations vary from bench to bench and from place to place and piling up & disposal of cases do not have any uniformity as well as accountability.

Similar is the situation in CBEC – when Govt. intends to simplify the rules and regulations in CBDT, it is not far away when the same will be applied in CBEC !!

While collecting the tax, no assessee needs any advice from any expert, but while depositing the same in the Govt. exchequer, why a third party, like a CA or a consultant, is needed ? Definitely, it encourages evasion as well as lingering of litigations by giving wrong advices.

Definitely litigations will be reduced and disposal of cases will increase and a healthy atmosphere will prevail. The intention is to curtail the role of expensive CAs for filing of returns and other assistance, thereby reducing the cost of doing business.

In Service Tax also, the rules and regulations need simplification, especially in cases of ST payment on reverse charge basis, imposition/waiving of fine & penalty and granting abatement etc. and removal of the role played by CAs, like CHAs in Custom House. 

Once the rules and regulations are simplified, at least all the quasi-judicial officers will prepare their own adjudication orders instead of depending on Superintendents & Inspectors, as is being done at present. 

No whims & fancies, accountability, responsibility and uniformity will prevail and the law will be impartially implemented.

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