Cbdt, Cbic Chiefs Tell Teams


The tax authorities stepped up revenue-raising measures ahead of the Union budget. According to sources, the two wings of the revenue department – ​​the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC) – in separate communications, instructed the field formations to “refocus the efforts” on tax collection.

Sources said the heads of both councils have asked teams to ensure weekly updates are shared ahead of budget discussions for revised estimates.

The sources added that some of the top priorities for the estates include – increasing revenue at the start of the second half of FY23, as well as measures to improve the tax base, especially for taxpayers in the new economy, digital platforms avoiding taxes, online games and the cryptocurrency sector. The Heads of Councils also requested that the focus be on completing ongoing investigations,

“Fields should consider non-intrusive and non-coercive measures to ensure that taxpayers file their returns, pay their taxes on time, dispose of seized items, including precious metals, more quickly and consider measures to close loopholes, improve the compliance, ensure efforts to improve the use of taxpayers. experience for online filing, among others,” the sources said.

The budget estimates set for direct taxes stand at Rs 14.2 lakh crore and for indirect taxes at Rs 13.37 lakh crore.

However, healthy indices and recoveries in the first half of the fiscal year caused the revenue department to often express confidence in its ability to exceed budget targets.

“Both councils should focus on collecting what is owed. They should avoid the easy option of stopping the refund/levy/ITC. Measures such as these do not contribute to the increase On the contrary, it causes difficulties for trade and industry and serves The focus should continue to be on combating evasion,” said former CBIC Chairman Najib Shah.

Sharing similar sentiments, experts also believe that the budget forecast was quite modest and that the government will be able to exceed the set targets.

“Given the momentum we have seen on GST collections in the first half of this fiscal year, the government is likely to exceed the budget estimate by a fair margin,” said Pratik Jain, partner at PwC India.

Jain said continued efforts to plug tax leaks must be made to maintain momentum. “The key is to do this with increased use of data analytics and technology in a non-coercive way. It is also important that the GST board quickly examines and clarifies a few fundamental issues, especially on emerging sectors such as crypto and online gaming.One of the ways to increase revenue could be to provide a voluntary compliance system and give the industry the ability to pay for past years, possibly without criminal consequences. added Jain.

Abhishek Jain, tax partner at KPMG, also believes that corporate vigilance and audits are of the utmost importance in the tax ecosystem of any economy, and help ensure better compliance as well as boost government collections. “GST field trainings have been successful in identifying huge instances of fraud and ensuring better compliance. the remaining gaps. The authorities will however have to ensure that the ease of doing business is not hampered,” he said.

Meanwhile, Saurabh Agarwal, tax partner at EY, said tax authorities relied on technology as the backbone to boost revenue. He said both the CBDT and the CBIC have used data analytics to achieve the goal of collecting taxes. “Many DRI and DGGI surveys have been conducted in the recent past, other than the regular data-based surveys and retrievals. Other sources that can help increase revenue can be online gambling taxation, dispute resolution and closure of GST and income tax assessments for the past period,” he said, adding that this implies that the industry should be ready with the data required for the completion of the assessment and should conduct a thorough review of their tax positions to ensure that there is no penalty exposure that arises from additional tax payments resulting from such assessments.

“Having said that, considering the festive season, GST collections for October are also expected to exceed Rs 1.4 lakh crore, which will lead to an increase in the treasury,” he added.

First post: STI


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