The Hindu : Business : Centre wants inputs for easier tax regime

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Friday, Jul 14, 2006

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Centre wants inputs for easier tax regime

Special Correspondent

Panel on service tax to submit report in August

— Photo: Kamal Narang

TAX REFORM: Gautam Ray, Joint Secretary, Ministry of Finance, addressing a professional learning programme on `Cenvat rules and service tax' in New Delhi on Thursday.

NEW DELHI: The Centre on Thursday sought suggestions from industry on ways to reform the taxation system, while asserting that all possible steps were being taken to simplify the existing structure.

Speaking at the opening of the two-day workshop on `Cenvat rules and service tax' organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) here, Gautam Ray, Joint Secretary, Ministry of Finance, said: "[The] Government is doing everything to simplify the tax system in the country. The changes in the budgets are made after taking responses from industry into consideration. The Ministry is open to constructive suggestions to make reforms in taxation."

Mr. Ray admitted that there was a lot more that was required to be done to improve the taxation system and called for "constructive suggestions" from industry instead of "rising disputes".

Mr. Ray, however, denied that the main reason behind the 35,000 taxation cases pending at various levels was the country's complicated legislation. About 80-90 per cent of these cases arose as the assessees were either not willing to pay their tax dues or had missed their deadline for filing returns, he said.

On industry's demand to introduce a negative list for service tax, Mr. Ray felt that a positive list would be easier to implement. However, it was up to the empowered Group of Ministers (eGoM) to decide on the issue of negative list, he said.

While conceding that tax officials lacked adequate training, Mr. Ray said the Government was framing training schemes for them. "The Government will spread awareness about tax laws by initiating training programmes and outsourcing training activities,'' he said.

Speaking to newspersons later on the sidelines, T. R. Rustagi, former chief of CBEC, said the committee headed by him for a comprehensive review of the tax on services was likely to submit its report next month.

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