PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA
Tax Administration Reform Commission (TARC)
New Delhi, October 21, 2013
Asvina 29, 1935
Pursuant to the announcement made by the Hon'ble Finance Minister in his Budget
Speech 2013-14, the government set-up Tax Administration Reform Commission (TARC) with a
view to reviewing the application of Tax Policies and Tax Laws in India in the context of global
best practices and to recommend measures for reforms required in Tax Administration to
enhance its effectiveness and efficiency. The term of the Commission is 18 months and it will
work as an advisory body to the Ministry of Finance. The Commission will give its first report
within six months and thereafter submit periodic reports after every three months.
The Chairman of the Commission is Dr. Parthasarathi Shome, in the rank of Minister of
State. The Members of the Commission are as follows:
Shri Y.G. Parande
Ms. Sunita Kaila
Shri M.K. Zutshi
Shri S.S.N. Moorthy
Shri M.R. Diwakar
Shri S. Mahalingam
The Terms of Reference of the Commission are as follows:-
To review the existing mechanism and recommend appropriate organizational structure
for tax governance with special reference to deployment of workforce commensurate
with functional requirements, capacity building, vigilance administration, responsibility
and accountability of human resources, key performance indicators, assessment, grading
and promotion systems, and structures to promote quality decision making at the highest
To review the existing business processes of tax governance including the use of
information and communication technology and recommend measures for tax governance
best suited to Indian context.
To review the existing mechanism of dispute resolution covering time and compliance
cost and recommend measures for strengthening the same. This includes domestic and
To review the existing mechanism and recommend capacity building measures for
preparing impact assessment statements on taxpayers compliance cost of new policy and
administrative measures of the tax departments.
To review the existing mechanism and recommend measures for deepening and widening
of tax base and taxpayer base.
To review the existing mechanism and recommend a system to enforce better tax
compliance by size, segment and nature of taxes and taxpayers, that should cover
methods to encourage voluntary tax compliance.
To review the existing mechanism and recommend measures for improved taxpayer
services and taxpayers education programme. This includes mechanism for grievance
redressal, simplified and timely disbursal of duty drawback, export incentives,
rectification procedures, tax refunds etc.
To review the existing mechanism and recommend measures for "Capacity building" in
emerging areas of Customs administration relating to Border Control, National Security,
International Data Exchange and securing of supply chains.
To review the existing mechanism and recommend measures for strengthening of
Database and Inter-agency information sharing, not only between Central Board of Direct
Taxes(CBDT) and Central Board of Excise and Customs(CBEC) but also with the
banking and financial sector, Central Economic Intelligence Bureau (CEIB), Financial
Intelligence Unit (FIU), Enforcement Directorate etc. and use of tools for utilization of
such information to ensure compliance.
To review the existing mechanism and recommend appropriate means including staff
resources for forecasting, analysis and monitoring of revenue targets.
To review the existing policy and recommend measures for research inputs to tax
To review the existing mechanism and recommend measures to enhance predictive
analysis to detect and prevent tax/economic offences.
Any other issue which the government may specify during the tenure of the Commission.
The Commission will be supported by a Secretariat and have its head quarters at Delhi. It
will be provided information and quantitative data of Central Board of Direct Taxes / Central
Board of Excise and Customs to do statistical analysis for making recommendations.
The first meeting of the Commission was held on 21st October 2013.