Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: ACCOUNTING STANDARD :: form 3cd :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: VAT Audit :: empanelment :: list of goods taxed at 4% :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: VAT RATES
 
 
News Headlines »
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government
 Deadline to pay property tax in old currency extended
 Cabinet clears amendments to Income Tax Act
 Have you got interest on your income tax refund?

CBEC to use third-party information to nab tax evaders
August, 19th 2014

India's indirect taxes body, the Central Board of Excise and Customs (CBEC) could start monitoring power consumption and payments towards valueadded tax in states as it proposes to use information from third-party sources to nab tax evaders.

The plan draws heavily from income tax authorities and hinges on the data shared by power utilities, stock exchanges, banks and Registrar of Companies in their information returns to verify their tax payments.

The government had in this year's budget inserted Section 15A and 15B in the Central Excise Act, seeking more information through returns for all indirect taxes and those failing to furnish it will have to face penalty. Armed with this provision, the CBEC is gearing up to effectively use the deluge of information flow.

"Third-party data can be very handy. The idea is to tap various information sources to tackle tax evasion in a nonintrusive manner," said a finance ministry official, who did not wish to be identified.

Effective use of third-party information by tax authorities had figured in discussions at the recently concluded annual conference of the chief commissioners and director generals of excise, customs and service tax departments.

Service tax authorities have already been provided with remittances received in lieu of import of services and directed to verify with service tax paid.

Third-party information system is used the world over to check evasion. The concept was first introduced in the country by the Central Board of Direct Taxes in the form of annual information returns. Banks, mutual funds, credit card issuers and property registrars are required to report transactions above a certain threshold in the prescribed format. Data is matched with taxpayers' income tax returns to detect any discrepancy in the income declared and tax paid. The information collected is also used to create 360-degree profiles of taxpayers.

Under excise duty norms, it is mandatory for manufacturers to file a statement on installed capacity, details of electricity supply connection including the total number of meters installed and sanctioned electricity load, permanent account number and valueadded tax registration number.

However, the country has not had a similar structured third-party information system in case of indirect taxes.

The Central Board of Excise and Customs now intends to make better use of IT-based information systems that will help it effectively deal with evasion, especially of service tax. The government had in 2012 detected about a million non-filers or stop filers of service tax, after which it announced an amnesty scheme to encourage evaders to come into the fold.

Experts have welcomed the CBEC's move. "This is a step in the right direction. Internationally tax authorities rely on a large of information sources to verify tax due to them," said Pratik Jain, partner, KPMG India.

The body is also launching an IT-enabled pilot for verification of cenvat credit claim on the lines of tax deducted at source in case of income tax. This will help the industry in facilitating faster credits as also the department in checking evasion.

The government has targeted collection of Rs 6.23 lakh crore towards indirect taxes during the current financial year, a growth of 25 per cent over 2013-14. Indirect taxes collections grew just 4.5 per cent in the three months to June, compared to the year-ago period, but June saw a promising 13.5 per cent growth over the corresponding month last year.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Article Management Solutions System Article Management Software S

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