Financial Daily from THE HINDU group of publications
Saturday, Dec 24, 2005
Financial Daily from THE HINDU group of publications Saturday, Dec 24, 2005 |
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Industry Associations Industry & Economy - Taxation FBT blow to industry may be softened — But it is here to stay, says CBDT Chairman Our Bureau
New Delhi , Dec. 23 THE Central Board of Direct Taxes (CBDT) Chairman, Mr M.S. Darda, today indicated that the Revenue Department would try to make it easier for industry to comply with the fringe benefit tax (FBT) provisions of the income-tax law in the forthcoming budget. "It appears that FBT is fast becoming a trauma for Indian industry. We will look at your concerns on this tax and see what could be done in terms of more clarification if necessary," Mr Darda said at a conference on pre-budget issues in direct taxes, organised by the Associated Chambers of Commerce and Industry of India (Assocham) here today. He, however, was not forthcoming with details. Mr Darda also indicated that FBT was here to stay and pointed out that the increasing incidence of tax evasion had led to complications in income-tax law. "We used to get a feeling that there is connivance between the employer and the employee (in the area of perquisites) to evade tax. This could be one of the reasons why we are having FBT today," he said. The CBDT Chairman also said that complications in tax laws could not be avoided if undue advantages were being taken out of such laws. Assocham's plea: Assocham is of the view that FBT is not a good law and is a surrogate tax. The chamber has made a case for doing away with FBT. So far, the FBT collections of the Government stood at about Rs 1,800 crore. Direct tax collections: Later, speaking on the sidelines of the conference, Mr Darda told newspersons that direct tax collections up to December 21 were about Rs 96,000 crore this fiscal. "This collection level is somewhat disappointing as usually by the end of December 31, we would have collected at least 60 per cent of the budget estimate," he said. For 2005-06, the budget estimate for gross direct tax collection is Rs 1,77,000 crore approximately. The CBDT Chairman, however, expressed confidence that the budget estimates for the current fiscal would be achieved. CCIT vacancies: Asked about the status of the vacancies of Chief Commissioners of Income Tax (CCIT), Mr Darda said the vacancies would soon be filled as the departmental promotion committee has met for this purpose. "In the next 15 days or so, we should see these vacancies filled up. The appointments would have to get the approval of the appointments committee of the Cabinet," he said. There are 34 posts of CCITs that had fallen vacant after April 2005. The Minister of State for Finance, Mr S.S. Palanimanickam, had recently said in a written reply to Parliament that the charge of these vacant posts had been assigned to other CCITs from the date of vacancies. He had also said that the amount of income-tax arrears accumulated and the extent of adverse effect of non-filling of vacancies on tax collections or recovery of arrears are not quantifiable.
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