• Investment World
• eWorld
• Catalyst
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest

Our Bureau

According to the Chief Commissioner of Income Tax (Andhra Pradesh), Mr Chowdary, e-filing of returns would be further made simpler by introduction of digital signature software.

Hyderabad , Sept. 10

DOING away with tax rebates might lead to cut in the tax rate, according to Mr P.A. Chowdary, Chief Commissioner of Income Tax (Andhra Pradesh).

Participating in an interactive session on `Central taxes - impact and implementation' organised by Confederation of Indian Industry (CII) here on Wednesday, he said, "if all exemptions go we can go for a tax rate of 20-25 per cent."

Stressing on the need for voluntary compliance, he said the department had tried to change the mindset of its employees. "Now it's your turn to respond and comply voluntarily," he said. "We would like to be a facilitator and not regulator."

"The tax-GDP ratio is growing up, which is a healthy sign. During the last 10 years, direct tax collections are growing at 20 per cent," he said.

Listing various measures taken up by the department to simplify and ease the procedures, Mr Chowdary said the e-filing of returns would be further made simpler by introduction of digital signature software.

Efforts are on to reduce litigation. "Most of the issues will be sorted out at intermediary level," he said.

Giving an overview on service tax, Mr N. Sridhar, Joint Commissioner (Customs & Central Excise - Hyderabad), said the Government expected that there would be voluntary compliance with regard to the service tax requirements. "The Government is eagerly watching how well the asseseess are responding to the voluntary compliance mode," he observed.

The fact that the Government doubled the target for service tax collections from Rs 4,000 crore last year to Rs 8,000 crore for the current fiscal showed the importance of this tax.

For the twin cities, the target is Rs 260 crore as against Rs 125 crore in 2002-03. "In the first five months, we have already collected Rs 70 crore," Mr Ramesh said.

"One of the most important aspects of the service tax is that the assessee is not paying the tax himself," he said.

In his welcome address, Mr M. Gopalakrishna, Convener of Economic Affairs Panel of CII-AP, said the country had been witnessing rationalisation and simplification of taxation in the last 10 years. "It's important that we should maintain a good tax-GDP ratio. There's an urgent need to widen the tax net. It should be made wider and simpler," he said.

Alluding to the Cancun summit, he said the country might have to reduce to tariffs. "So, we have to look seriously at improving our tax collections. We should also ensure better control over financial deficit."

Article E-Mail :: Comment :: Syndication

Stories in this Section
7% rise in indirect tax collections in April-August

Copyright © 2003, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line