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
« General »
 Income tax benefits on NPS explained in 5 points
 Why new tax surcharge has stunned foreign portfolio investors
  How to set-off short-term capital gains?
 Tax receipts growing but not fast enough for new government
 How Modi government's budgets have reduced your income tax burden
 Tax department tightens the noose on offenders
 How to set-off short-term capital gains?
 Government to revamp procedure for tax assessment
 I filed my ITR for AY 2019-20 but made a mistake. How can I rectify it?
 Stricter rules on dealing with tax evasion kicks in from today
 New income tax rules from today, no escape just by paying penalty

Settle small tax disputes, raise threshold for appeals to avoid court hassles: Experts to FM
June, 16th 2014

Finance minister Arun Jaitley would do well to settle larger chunks of relatively smaller tax disputes within the revenue department instead of letting them reach tribunals and courts, leading to an accumulation of tax disputes.

Another way, experts said, to reduce time-consuming litigation that impacts businesses is to make the department appeal against judicial orders much more infrequently than now.

Appeal
The present thresholds of disputed tax amount, above which assessment officers concerned can appeal against the decisions taken by the Commissioner (Appeals), are Rs three lakh without interest and penalty in the case of direct taxes and Rs five lakh with or without interest and penalty in the case of indirect taxes.
Appeal

Raising these thresholds two or three-fold would prevent a large number of disputes from reaching tribunals and from there courts, experts said, adding that there could also be similar increases in the monetary limits set for the department to challenge the orders of tribunals at courts.

The current monetary limits (for appeals) were decided in 2011, when the government revised the limits set in 2008 for direct taxes and in 2010 for indirect taxes. For both direct and indirect taxes, the current monetary limits for filing appeals at High Courts and Supreme Courts are Rs 10 lakh and Rs 25 lakh, respectively. When constitutional question is there, no monetary threshold is applicable.

“If the current monetary limits are raised by two to three times, it would give relief to small tax payers and help in substantially reducing litigation,” said SP Singh, senior director, Deloitte, Haskins & Sells.

As per official estimates released last June, tax disputes of more than Rs 4.82 lakh crore of direct taxes and over Rs one lakh crore of indirect taxes were at various stages. Direct tax disputes cover transfer pricing too, on which India has the largest number of disputes by volume.

Another way to cut down avoidable dispute is to effectively use the feedback from High Courts. “If on one issue, there are multiple decisions by the tribunal favouring the taxpayer and High Courts refuse to admit an appeal, then it would be prudent to issue an internal circular to direct officers not to make (income) additions on the same issue in the case of other tax payers,” said SP Singh.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2019 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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