BCIC Submits Representation on Simplification of Taxes to Justice Easwar Committee
Hopes this will bring in Radical Tax Reforms enabling Ease of Tax Compliance and reduced litigation in long run
A key recommendation suggested by Bangalore Chamber of Industry and Commerce (BCIC) related to minimising tax disputes which will ultimately ensure fair collection of taxes in a more transparent manner. This forms a part of BCIC’s recommendation submitted to the Justice R V Easwar Committee constituted by the Government of India to simplify the Income Tax Act, 1961.
A three-member Bangalore Chamber of Industry and Commerce (BCIC) delegation made a presentation to the Easwar Committee in Bangalore yesterday. BCIC’s key recommendations hovered on contentious issues vis-à-vis Dispute Resolution Mechanism, Place of Effective Management, Income Computation and Disclosure Standards (ICDS), Equalization Levy, Minimum Alternative Tax, Taxation on Indirect Transfer, Business re-organisation, Transfer Pricing, Foreign Tax Credit, Administrative & Procedural changes, Transfer Pricing, Tax withholding and Corporate Tax to name a few administrative and procedural changes which is resulting in unwarranted tax disputes between the department and the corporate.
Mr. K R Sekar, Chairman, Direct Taxes, BCIC said: “Amidst the economy which is showing signs of recovery, there is an urgent need to improve the Ease of Doing Business in India and also Ease of Tax Compliance and Taxpayer Comfort. In this background, on behalf of Bangalore Chamber of Industry and Commerce we welcome the initiative of the Government in setting up of Committee under Chairmanship of Justice R.V Easwar to review and suggest recommendations to simplify the Income Tax Act, 1961.
He further added: “The administration of tax laws in right and fair manner will contribute to the growth of economy. The tax payers are positive on reforms in administration of tax laws with an aim to resolve the disputes and reduce the litigation with intent to achieve certainty. It is widely believed that a portion of potential tax revenue not collected can be collected through proper tax administration. The tax laws if properly and rightly administered may pave way for better collection of tax as implementation of proper administration of tax always has a direct impact on tax policy formulation. In other words in practice, it is likely that both tax policy and tax administration have mutually affected each other.”
Some of the key recommendations which were highlighted by the BCIC Delegation included critical issues like critical issues like
BCIC sincerely hopes that if a few of the Chambers key recommendations are effected, a radical Tax Reforms can be brought about which on one hand can minimize disputes and on the other ensure fair collection of taxes in a more transparent manner.