Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: ACCOUNTING STANDARDS :: VAT RATES :: articles on VAT and GST in India :: empanelment :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: form 3cd :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: TDS
Direct Tax »
 How to save tax; amazing tips to make your money stay in your wallet Income tax returns (ITR) filing
 Want to save tax? Here are the best options
 Suggestion For Option To Assessee For Higher And Lower TDS/TCS For Optimization Of Tax Collection And Refunds
 CBDT to conduct nationwide review of tax collection for FY18 today
 Here are a few last-minute tax saving ideas Not planned taxes yet?
 Confessions of a fake CA exposes lacuna in e-filing of tax return
 Greetings from the income tax department
 Scrambling to scrounge proof of tax-saving investment
 5 tips to save your money Do not make this big income tax returns filing mistake
 I-T e-assessment: CBDT notifies new communication scheme
 Which income tax form to use; all you want to know in short and precise manner

Settling tax disputes
January, 18th 2016

While the government has consistently said it wants to resolve legacy tax disputes such as with Vodafone and Cairn through discussion—the ideal would be to scrap the retrospective tax law but finance minister Arun Jaitley is loath to do so—the problem is that there is no provision under the Income Tax Act which allows this. Which is why, the Tax Administration Reform Commission (TARC) had recommended a pre-dispute mechanism for resolving tax cases as well as a formal taxpayer dispute resolution centre (TDRC).

There are, of course, several dispute resolution mechanisms available under the tax law even today, but these take too long and are usually ineffective. Which is why, the number of cases pending at various levels were a staggering 2.67 lakh at the end of FY13—1,99,390 with the CIT (Appeals), 31,015 at the ITAT level, 31,230 with the High Courts and 5,808 cases in the Supreme Court. How time-consuming this is can be gauged from a Ficci study that found even passing a simple order by an assessing officer takes 1-2 years, a case at the CIT (appeals) level normally takes 3-4 years for resolution but could go on for up to 6-8 years, the ITAT takes 2-3 years or even longer while cases take 3-5 years at the high court level (they can, though, last 8-10 years on occasion) and another 4-7 years at the Supreme Court—since, due to the process of appeals, much of this happens sequentially, the torture for assessees is apparent.

As for alternate dispute resolution mechanisms like the Authority for Advance Ruling (AAR), Settlement Commission and Dispute Resolution Panel (DRP), as the TARC points out, they are both weak and limited in scope. Only non-resident taxpayers and specified categories of resident taxpayers can approach AAR and its rulings can be challenged in the High Court; the Settlement Commission can only take up those cases which are pending at the assessing officer level and have not reached the appeal stage (this is also just a once-in-a-lifetime opportunity for taxpayers), and the DRP is seen as just an extension of the assessment mechanism.
Finance minister Jaitley would do well to create a separate dispute resolution vertical in the CBDT with a strong pre-dispute consultation mechanism, a 3-member independent commissioners’ panel to decide on cases, strict adherence to a time-bound resolution process in the ADRs, and a capable TDRC.

But, the real clincher could be the amendment of the present tax legislation to incorporate internationally-accepted best practices of alternate dispute resolution, such as arbitration, conciliation, mediation, negotiation, that could be utilised before a tax demand is raised and will not be subject to any further appeal by any of the parties.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions