Service Exporters in a Fix as Tax Dept rejects refund claims....... The Economic Times pg 6, 17th Oct 2012
Decisions of Taxes and Refunds have to be Online. When an Individual or Company files a return, the system is designed to consider the activity and decide the Tax to be deducted and or Refund to be made.
This decision cannot be subjective, based on the moods of the Tax collector. It has to be objective, based on data fed and decision made.
What the authorities can do is to design the form and ask the person entering the data to confirm all that is stated is TRUE more than once. This will ensure he does not feign ignorance later.
The authorities should randomly investigate 10% of the data in depth. If the organisation or individual has fudged and misrepresented data, then the fine should be 10X the normal tax to be paid + Rs 1 lakh.
If the data is entered by a CA then for the second incorrect entry the CA stand to have his licence suspended for 6 yrs. This one rule will ensure better compliance and collection, and ensure we are free of corruption.
Decisions of Taxes and Refunds have to be Online. When an Individual or Company files a return, the system is designed to consider the activity and decide the Tax to be deducted and or Refund to be made.
This decision cannot be subjective, based on the moods of the Tax collector. It has to be objective, based on data fed and decision made.
What the authorities can do is to design the form and ask the person entering the data to confirm all that is stated is TRUE more than once. This will ensure he does not feign ignorance later.
The authorities should randomly investigate 10% of the data in depth. If the organisation or individual has fudged and misrepresented data, then the fine should be 10X the normal tax to be paid + Rs 1 lakh.
If the data is entered by a CA then for the second incorrect entry the CA stand to have his licence suspended for 6 yrs. This one rule will ensure better compliance and collection, and ensure we are free of corruption.
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