Budget will address Shome panel's tax concerns: FinMin
May, 17th 2014
The finance ministry might address some taxation-related concerns of industry identified by the Parthasarathi Shome-headed forum in the coming Budget of the new government.
The forum for exchange of views between industry groups and government, constituted in July 2013, identified 29 issues in direct taxes and 47 matters in indirect taxes that merited removal of the obstacles and the issue of clarifications or amendment of procedures.
“Several circulars and notifications have been issued by the Central Board of Direct Taxes and Central Board of Excise & Customs, pursuant to these decisions. Some others are in the process of being issued. Some other issues that require changes in law are expected to be addressed in the coming Union Budget,” the ministry stated on Tuesday.
The forum held 18 meetings in August-September 2013 and discussed taxation issues concerning an industry group or sector but did not entertain grievances of any individual taxpayer.
During the two-month period, the forum met every Wednesday with repr%esentatives of various industry groups and associations and covered matters relating to the information technology sector, manufacturing, infrastructure, services, including financial services, THE insurance sector including reinsurance, the export sector, and issues in international taxation.
In order to have structured and meaningful discussions, a format was devised for receiving memoranda from industry groups so as to clearly highlight the tax issue or tax dispute sought to be discussed.
The forum has helped taxpayers in resolving several long-standing issues, the ministry said, adding such consultations bring to the notice of government a tax-related issue or dispute at a preliminary stage, resulting in its resolution much before it snowballs into a greater difficultly for the taxpayer.
Issues pertaining to service tax refunds, Cenvat credit, excise duty levy on sale of goods at loss have already been addressed by the finance ministry based on the forum’s recommendations.