CA bodies submit representation for ‘Acche Din’ for taxpayers to Finmin

Surabhi Mumbai | Updated on August 20, 2019 Published on August 20, 2019

Anurag Thakur, Minister of State for Finance

Seek timely refunds, extension in due date for GST Annual Return and Reconciliation Statement, higher threshold for launching prosecution

Chartered Accountants’ associations have met Minister of State of Finance, Anurag Thakur seeking a slew of reforms for ‘Acche Din’ in income tax and good services tax to benefit taxpayers.

In a joint representation to the Finance Ministry on Monday, five Chartered Accountants associations have called for timely availability of income tax return forms, extending the due date for filing returns to August permanently, simpler refund norms and increasing the monetary threshold for launching prosecutions.

“Prosecution notices have been issued to hundreds of tax payers for various kinds of procedural defaults. The threshold limits for launching prosecution are very low,” said the representation led by the Bombay Chartered Accountants’ Society, Chartered Accountants Association, Ahmedabad, Chartered Accountants Association Surat, Karnataka State Chartered Accountants’ Association and Lucknow Chartered Accountants’ Society.

Noting that the Central Board of Direct Taxes does not allow tax department to file appeals to the ITAT, High Court and Supreme Court, if the tax impact does not exceed Rs 50 lakh, Rs 1 crore and Rs 2 crore respectively, it pointed out that the threshold for launching prosecution for non-filing/late filing of return is as low as Rs 10,000.

It has also highlighted that refunds are being held up in various cases.

Incidentally, the five associations met with Thakur on the same day that the government appointed taskforce on direct taxes submitted its report on overhauling the Income Tax Act, 1961. The panel is understood to have suggested significant simplification of the tax laws, reduction in rates and measures to lower litigation.

The tax associations have also suggested measures for amending the goods and services tax that would not have a significant revenue implication but would help in ease of doing business if implemented. It has called for extending the due date for filing of Annual Return and Reconciliation statement for FY 2017-18 under GST as “majority of tax payers are facing above stated difficulties even as on date.”

It is also suggested that the new return filing system proposed to be introduced from October’ 2019 and mandatory e-invoicing proposed to be introduced from January 2020 be thoroughly tested before implementation to avoid any technical issues, the representation said, adding that it can instead be started from April 1, 2020.

It has suggested for changing the constitution and functioning of the Advance Ruling Authority for GST. “Many instances have happened till now wherein the Rulings have been issued without correctly appreciating the provisions of law and then CBIC had to step in by issuing clarifications implied overturning the rulings,”the representation said.

Published on August 20, 2019
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