RAPID tax reform on the road

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Inline image 1By: Light Chawla

When the prime minister in June last year Shri Narendra Modi’s name when addressing officials of the Central Board of Direct Taxes (sibitidi) and Central Board of Excise Customs (CBEC), he RAPID bajavava role to raise funds for the exchequer by taking the first letter of each word.

‘The revenue of the confluence of the closing ceremony of the “most senior tax officials were carrying with them the true sense of the word RAPID, meaning Revenue (income), ekauntibiliti (accountability), Probity (honesty), information (data) and dijitaijhesana. The core of the Prime Minister’s message was that people avoid filling the tax rules against them should be effective, but people who have shown a willingness to pay the tax or the tax take should be in a position to be performed their national duty without gauravabhera and fear.

Taxpayers the right information, the right laws is not fear, when equipped with the tools and the integrity and accountability of officials. Tax laws are complex and it is also a history of being very honest taxpayers confused splits its rules and sub-rules. The rules for the government, individuals, trade and industry have been trying to make it easier, resulting in honsabhera people can fill their outstanding taxes.

It can be said that it is often difficult to change the tax laws, as laws have been claims in the courts to scrutinize every portion. For example, Which has been much discussion it was considered one of the causes of paralysis during the previous government’s policy dictates taxes were applied retroactively. Despite the ruling of the case pending before the judiciary retroactively cast have been given away to recover the tax system.

Life becomes easier for taxpayers Ministry of Finance is going to be continued to lower the tax burden of compliance. For example, Finance Minister Arun Jaitley had announced in previous budgets, to control the prevalence of Domestic Transfer Pricing. The Finance Act was brought as an Anti-Avoidance Measures in 2012.

Similar types of business organizations were predictive income of Rs.1 crore for audit have been increased to Rs 2 crore. Maintaining accounting books of individuals and HUF limit has been increased from Rs 25 lakh to Rs 10 lakh. Inductive limit for tax professionals have been applied on an annual income of Rs 50 lakh. Naturally these provisions will be easier to save small business accounting books.

Some of the provisions that are easy for users have been entered into the income tax law. Foreign portfolio investors will share part of the operation will ease the transfer of interest.

However, the largest and most effective can improve the Goods and Services Tax (GST) will apply in July of this year or latest by late September. However, the overall character of the political groups should be commended for it, and to approve laws on constitutional reform and transformational Parliament to agree on a tax matter. This approach could not be determined due to the Prime Minister with the very persistence. When GST is underway preparations spirit of flooding, while on the implementation of the Prime Minister himself is doing the operational review and the central government, states and business organizations that are transforming the system to pay tax on to become equipped to adopt a tax on the indirect as well as a variety of business and consumer goods and services Serving attention to the matter.

The previous tax laws were used by the original manufacturers. GST tax will become a customer-driven, and there will be great changes in tax payments and credit systems. Incidentally excise, rather than additional taxes such as excise, value added tax or sales tax, service tax and octroi just agreed on a tax.

According to the prescribed various estimates tax regime as a result should be a minimum increase of 2 per cent to 1 in the gross domestic product’s (GDP), as some businesses were going to stay out of the business tax structure would be required to adopt a new system for their own interests and operational efficiency . GST is raised worries about whether it will come true, but in the medium to long term prices will be lower and the whole value chain channels will be available in Trade Credits. In addition to increasing the cost of economic transactions in the inter-district movement of goods due to delays at the borders of the state there is Goods will be lower because of the fall in consumer spending.

GST is implemented easily have been equipped for the business industry have been equipped for it and CBDT, CBEC, including to train the employees of the state governments, along with the entire mechanism of consultation with the merchant class. In the early stages will be demanding some concessions to shift toward commercial organizations Goods and services tax Net (jiesatiena). Perhaps, the GST will be judged on the basis of the quality of the issue by the council. GST is a big advantage to be successful, and it will be able to upgrade India’s showpiece.

Global rating agencies and organizations of various kinds are also working closely tracking the implementation of GST. So it will easily move a few steps in the implementation of the index is the World Bank’s Doing Business. Taxation is an important barometer, which is a catalyst for investment in the success of the work of local or global capital. India now seems to be moving in the right direction.

(Prakash Chawla is a veteran journalist and commentator. He mainly writes articles on global economic issues in addition to political and economic topics. His opinions expressed in this article are his personal opinion)