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INDIRECT TAXES IN INDIA UNION & STATES CTRPF: 13.08.2013 Sri Rajsekhar Bandyopadhyay Senior Joint Commissioner, Commercial Taxes West Bengal Sri Rajsekhar.

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Presentation on theme: "INDIRECT TAXES IN INDIA UNION & STATES CTRPF: 13.08.2013 Sri Rajsekhar Bandyopadhyay Senior Joint Commissioner, Commercial Taxes West Bengal Sri Rajsekhar."— Presentation transcript:

1 INDIRECT TAXES IN INDIA UNION & STATES CTRPF: Sri Rajsekhar Bandyopadhyay Senior Joint Commissioner, Commercial Taxes West Bengal Sri Rajsekhar Bandyopadhyay Senior Joint Commissioner, Commercial Taxes West Bengal

2 Q Highlights Sustaining Competitive Advantage Management Outlook Appendices Contact : Constitutional Aspects of Taxation by the Union and States F INANCIAL ARRANGEMENTS UNDER CONSTITUTION -- D ISTRIBUTION OF TAXATION HEADS (A RTICLES AND 265 READ WITH THE L ISTS I AND II) D ISTRIBUTION OF TAXATION HEADS (A RTICLES AND 265 READ WITH THE L ISTS I AND II) AND AND D ISTRIBUTION OF REVENUES AND SHARING OF RESOURCES BETWEEN THE U NION AND THE S TATES (C HAPTERS I & II OF P ART XII OF THE C ONSTITUTION ). D ISTRIBUTION OF REVENUES AND SHARING OF RESOURCES BETWEEN THE U NION AND THE S TATES (C HAPTERS I & II OF P ART XII OF THE C ONSTITUTION ).

3 Contact : Financial Relations between the Union and the States Distribution of Revenues A Duties levied by the Union but collected and appropriated by the State. Service tax levied by Union and collected and appropriated by the Union and the States. [88 th amendment – ] 269 Taxes levied and collected by the Union but assigned to the States. 270 Taxes levied and distributed between the Union and the States. 271 Surcharge on certain duties and taxes for purposes of the Union.

4 Contact : Financial Relations between the Union and the States D ISTRIBUTION OF TAXATION POWERS S EPARATE HEADS OF TAXATION FOR THE U NION AND THE S TATES ARE PROVIDED IN L ISTS I AND II. S EPARATE HEADS OF TAXATION FOR THE U NION AND THE S TATES ARE PROVIDED IN L ISTS I AND II. N O TAX CAN BE LEVIED UNLESS IT IS RELATED TO A SPECIFIC HEAD OF TAXATION IN L IST I OR L IST II. N O TAX CAN BE LEVIED UNLESS IT IS RELATED TO A SPECIFIC HEAD OF TAXATION IN L IST I OR L IST II. T HERE IS NO HEAD OF TAXATION IN THE C ONCURRENT L IST (U NION AND THE S TATES HAVE NO CONCURRENT POWER OF TAXATION ). T HERE IS NO HEAD OF TAXATION IN THE C ONCURRENT L IST (U NION AND THE S TATES HAVE NO CONCURRENT POWER OF TAXATION ). T AXATION POWERS OF UNION & STATES ARE MUTUALLY EXCLUSIVE. T AXATION POWERS OF UNION & STATES ARE MUTUALLY EXCLUSIVE.

5 Contact : Financial Relations between the Union and the States D ISTRIBUTION OF TAXATION POWERS F OURTEEN TAXATION HEADS IN E NTRIES 82 TO 92C IN THE U NION L IST. F OURTEEN TAXATION HEADS IN E NTRIES 82 TO 92C IN THE U NION L IST. N INETEEN TAXATION ITEMS IN E NTRIES 45 TO 63 OF THE S TATE L IST. N INETEEN TAXATION ITEMS IN E NTRIES 45 TO 63 OF THE S TATE L IST. R ESIDUARY POWER OF TAXATION VESTS IN THE U NION – E NTRY 97 OF U NION L IST. R ESIDUARY POWER OF TAXATION VESTS IN THE U NION – E NTRY 97 OF U NION L IST.

6 Contact : Financial Relations between the Union and the States B ROAD P RINCIPLE OF A LLOCATION OF T AXATION H EADS  T AXES WHICH ARE LOCATION - SPECIFIC AND SUBJECTS OF LOCAL CONSUMPTION – ASSIGNED TO THE S TATES.  T AXES WHICH ARE OF INTER -S TATE SIGNIFICANCE AND WHERE THE TAX - PAYER CAN GAIN OR EVADE TAX BY SHIFTING HIS HABITAT OR WHERE THE PLACE OF RESIDENCE IS NOT A CORRECT GUIDE TO THE TRUE INCIDENCE OF TAX – ASSIGNED TO THE U NION.

7 Contact : Financial Relations between the Union and the States Tax on sale of goods AND Some Major Central & State Taxes

8 Contact : The present state of coordination and conflict in the context of indirect taxes --  Income Tax and VAT/Sales Tax  Central Excise Duty and VAT/Sales Tax  Customs Duty and VAT/Sales Tax  Service Tax and VAT/Sales Tax  Other Taxes by the State The present state of coordination and conflict in the context of indirect taxes --  Income Tax and VAT/Sales Tax  Central Excise Duty and VAT/Sales Tax  Customs Duty and VAT/Sales Tax  Service Tax and VAT/Sales Tax  Other Taxes by the State Indirect Taxes : Union and the States

9 Contact : Taxation : Union and the States Income Tax – income from non-business, personal transactions are also incorporated for the purpose of income tax but not for the State taxes Income Tax – detection of evasion – unreported income cannot always be treated as through suppression of sales Undisclosed Income – voluntary disclosure scheme under the Income Tax Act – disclosure did not result in payment of the relevant sales tax

10 Contact : Taxation : Union and the States Income Tax vis-a-vis Profession Tax – Constitutional provision limiting the amount of profession tax at Rs per year – Limit remains unchanged even since recommendation by the 11 th Finance Commission for raising the limit to Rs per year

11 Contact : Taxation : Union and the States C ENTRAL E XCISE – TAX LIABILITY UNDER C ENTRAL E XCISE A CT IS NOT ALWAYS COTERMINOUS WITH TAX LIABILITY UNDER THE S ALES T AX /VAT A CTS – MANUFACTURING FOR OTHERS AND MANUFACTURING BY OTHERS – TAX IMPLICATIONS M OTOR C AR M ANUFACTURERS – A RECENT NOTIFICATION THAT SUCH MANUFACTURERS ARE TO PAY CENTRAL EXCISE DUTY ON THE MANUFACTURING COST OF CARS AND NOT ON TRANSACTION VALUE – VAT IS PAYABLE ONLY ON TRANSACTION VALUE R OLLING M ILLS – MONTHLY FIXED AMOUNT OF CENTRAL EXCISE DUTY ON THE BASIS OF ASCERTAINED PRODUCTION CAPACITY – NO ACCOUNTS RELATING TO SUCH MANUFACTURING IS REQUIRED TO BE MAINTAINED – IMPLICATIONS FOR SALES TAX

12 Contact : Taxation : Union and the States C USTOMS D UTY – A DDITIONAL D UTY OF C USTOMS IN LIEU OF SALES TAX – THE RATES OF ADDITIONAL DUTY REMAINED UNCHANGED THOUGH THE OTHER ELEMENTS OF CUSTOMS DUTY WERE RAISED SIGNIFICANTLY

13 Contact : Taxation : Union and the States S ERVICE TAX ON P ROMOTERS AND D EVELOPERS ETC – SERVICE TAX IS PAYABLE ON A PORTION [25%] OF THE TOTAL VALUE FOR CONTRACTS INVOLVING CONSTRUCTION OF COMPLEX OR BUILDING FOR SALE WHERE ANY PART OF THE CONSIDERATION IS RECEIVED BEFORE THE COMPLETION OF THE BUILDING [ NEGATIVE LIST -- “ WHERE THE ENTIRE CONSIDERATION IS RECEIVED AFTER ISSUANCE OF CERTIFICATE OF COMPLETION BY A COMPETENT AUTHORITY ” ] – I MPLICATION ON THE SALE OF THE IMMOVABLE PROPERTY ON WHICH ONLY THE S TATE HAS THE POWER TO LEGISLATE AND IMPOSE TAX.

14 Contact : Taxation : Union and the States T RANSFER OF RIGHT TO USE GOODS UNDER VAT – CORRESPONDING ENTRY IN S ERVICE T AX LEGISLATION – USE OF THE EXPRESSION “ POSSESSION AND CONTROL ” IN THE DEFINITION IN S ERVICE T AX INSTEAD OF THE JUDICIALLY DEFINED EXPRESSION “ POSSESSION AND EFFECTIVE CONTROL ”

15 Contact : T HE TERM “ SERVICE IN RELATION TO RENTING OF IMMOVEABLE PROPERTY ” DOES NOT IMPLY THAT SUCH RENTING IS A SERVICE. T HE INTERPRETATION THAT RENTING OF IMMOVEABLE PROPERTY BY ITSELF CONSTITUTES A SERVICE LIABLE TO SERVICE TAX, IS INCORRECT AND CONSEQUENTLY ULTRA VIRES THE F INANCE A CT -- D ELHI HC 2009 [H OME S OLUTIONS R ETAIL V S UOI ] T AX ON LAND COVERED UNDER E NTRY 49 OF S TATE L IST Taxation : Union and the States

16 Turnkey (A contract for) a job in which the contractor is to complete the entire operation, leaving the building, a plant etc. ready for use – designed and ready for immediate use by the contractee Composite contracts -- contracts, other than works contracts, comprising supply of goods and provision of services Building Contracts (WCT) Composite Contracts Turnkey Projects (WCT) Works Contr actors Build- ers Hiring Contracts (RTU) Rent-a-Cab Intellectual Property Mandap Caterers Event Mgt. Convention Erection / Installation Auth. Serv. Station Repair Photography Bus.Auxil. Complex Construct Commer. / Indl. Const. VAT vis-à-vis SERVICE TAX

17 Contact : Taxation by the Union and the States TEMPORARY TRANSFER OR PERMITTING THE USE OR ENJOYMENT OF ANY INTELLECTUAL PROPERTY RIGHT A RTICLE 366 (29A) (d) NOT BE DISTURBED S ERVICES TO OWN MEMBERS BY AN EXEMPT ENTITY BY WAY OF REIMBURSEMENT OF CHARGES A RTICLE 366 (29A) (e) NOT BE DISTURBED. T OLLS EXCEPT SERVICES IN RELATION TO COLLECTION OF TOLLS C OVERED IN S TATE L IST, E NTRY 59. B ETTING AND GAMBLING EXCEPT SERVICES IN RELATION TO PROMOTING, MARKETING OR ORGANIZING GAMES OF CHANCE, INCLUDING LOTTERY SERVICES C OVERED IN S TATE L IST, E NTRY 34 & E NTRY 62. A DVERTISEMENTS OTHER THAN ADVERTISEMENTS PUBLISHED IN NEWSPAPERS OR BROADCAST BY RADIO OR TV OR DISPLAYED IN OTHER ELECTRONIC MEDIA C OVERED IN S TATE L IST, E NTRY 55. SERVICE TAX OR VAT ?

18 Contact : Change in Service Tax w.e.f Description of service Existing taxable portion Proposed taxable portion 1. Service portion in the supply of food or any other article of human consumption or drink at a restaurant 30%40% 2.Service in outdoor catering 50%60% 3. Convention center or mandap with catering 60%70%

19 Contact : Taxation : Union and the States TAX REVENUE UNION & STATE GOVERNMENTS UNION & STATE GOVERNMENTS TRENDS …….

20 Contact : Source : Index of Economic Freedom, Heritage Foundation, 2012 India’s Tax Revenue - Comparative Status

21 CORPORATION TAX INCOME TAX CUSTOMS DUTY EXCISE DUTY SERVICE TAX Contact : BREAK-UP OF TOTAL UNION TAXES SHARE OF TAXES SHARE OF TAXES CORPORATION TAX INCOME TAX CUSTOMS DUTY EXCISE DUTY SERVICE TAX 37% 18% 11% 17% 39% 22% 20% 17% 2%

22 Contact : India’s Tax Revenue

23 Contact :

24 Direct Taxes Trend

25 Contact : Union and the States : States Growing Faster

26 Contact : Service Tax - New Tax Source for the States ? NEGATIVE LIST OF SERVICES - ANY SIGNIFICANT CHANGE IN ? 132, ALL SERVICES, OTHER THAN THOSE IN NEGATIVE LIST, MADE TAXABLE

27 Contact : Scope for improved coordination and tax implication  360° profiling  IT oriented synchronisation  IT and Data Architecture - synchronisation and mismatch Scope for improved coordination and tax implication  360° profiling  IT oriented synchronisation  IT and Data Architecture - synchronisation and mismatch Indirect Taxes : Union and the States

28 Contact : Taxation : Union and the States I NFORMATION SHARING -- W ITHIN UNIT, AMONG UNITS, WINGS, DIRECTORATES, DEPARTMENTS, S TATES & C ENTRE W HETHER SHARING SHOULD BE DISCRETIONARY OR COMPULSORY – IT DRIVEN MECHANISM P ROFESSION T AX SLAB LINKED TO TURNOVER OF BUSINESS – CHECKING WITH VAT RETURNS M OTOR V EHICLES D ATA – CHECKING FOR VEHICLE INFORMATION – CHECKING OF VEHICLE REGISTRATION DATA WITH THE SALE DATA REPORTED BY DEALERS

29 Contact : R EVENUE A DMINISTRATION Indicators of Effectiveness Q UALITATIVE I NDICATORS P ERCEPTION OF TAXPAYERS REGARDING :  R ISK OF DETECTION OF NON - COMPLIANCE AND SEVERITY OF CONSEQUENCES.  Q UALITY OF ASSISTANCE PROVIDED BY THE A DMINISTRATION TO ENABLE TAXPAYERS TO COMPLY WITH LEGAL OBLIGATIONS.  E FFECTIVENESS OF THE RA IN RESOLVING TAXPAYER PROBLEMS.  P UBLIC PERCEPTION REGARDING THE DEGREE OF CORRUPTION IN THE RA.  RA MORALE AND SELF - IMAGE.

30 Contact : R EVENUE A DMINISTRATION : Indicators of Efficiency Q UANTITATIVE I NDICATORS :  A VERAGE NUMBER OF DAYS TAKEN TO IDENTIFY AND NOTIFY N ON - FILERS & N ON - PAYMENT OR UNDERPAYMENT OF DECLARED TAX LIABILITIES.  N UMBER OF TAXPAYERS / N UMBER OF EMPLOYEES.  A DMINISTRATIVE C OSTS / T OTAL R EVENUE C OLLECTED.  D IRECT AND INDIRECT COMPLIANCE COSTS INCURRED BY TAXPAYERS INCLUDING :  L EGAL ADVICE TO UNDERSTAND AND INTERPRET THE TAX LAWS.  P REPARATION AND FILING OF DECLARATIONS.  P AYMENT OF TAXES.  R EPRESENTATION BEFORE THE RA IN AUDIT PROCEEDINGS.  F ILING OF OBJECTIONS AND APPEALS AGAINST ASSESSMENTS.  G ETTING REFUND OF EXCESS TAXES PAID.  M EETING INFORMATION REQUIREMENTS OF THE RA ( SALES AND PURCHASE DATA, INFORMATION REGARDING TRANSACTIONS WITH THIRD PARTIES ETC.).  A TTENDING TO FIELD OPERATIONS ( SURVEY, SEARCH AND SEIZURE OPERATIONS, CHECKING OF ISSUE OF VAT INVOICES, INSPECTION OF GOODS ETC.).  W ITHHOLDING TAXES COLLECTED ON BEHALF OF THE R EVENUE A DMINISTRATION.

31 Contact : REVENUE ADMINISTRATION

32 Contact : EFFECTIVE COORDINATION & SYNERGY

33 Contact : Indirect Taxes : Union and the States Appropriate Tax Policy Reform to harness the beneficial effects of synergy  Implications for GST  Applicability even before introduction of GST Appropriate Tax Policy Reform to harness the beneficial effects of synergy  Implications for GST  Applicability even before introduction of GST

34 S COPE FOR GST A BOUT SOME ASPECTS OF IT SYSTEM :-- 1. P ROBLEMS IN OUR CURRENT IT SYSTEMS 2. D ESIRED FORM OF THE IT SYSTEM 3. W HAT IT SYSTEM SHOULD DO FOR US A BOUT SOME ASPECTS OF IT SYSTEM :-- 1. P ROBLEMS IN OUR CURRENT IT SYSTEMS 2. D ESIRED FORM OF THE IT SYSTEM 3. W HAT IT SYSTEM SHOULD DO FOR US

35 1. P ROBLEMS IN CURRENT IT SYSTEMS D IFFERENT S TATES ARE AT DIFFERENT LEVELS OF COMPUTERISATION D IFFERENT S TATES ARE AT DIFFERENT LEVELS OF COMPUTERISATION E VEN WHERE THERE IS SOME DEGREE OF COMPUTERISATION, THERE IS MUCH SCOPE OF IMPROVEMENT IN IT ORIENTED FUNCTIONING E VEN WHERE THERE IS SOME DEGREE OF COMPUTERISATION, THERE IS MUCH SCOPE OF IMPROVEMENT IN IT ORIENTED FUNCTIONING T HERE ARE PROBLEMS IN IT INFRASTRUCTURE -- H ARDWARE, S OFTWARE, C ONNECTIVITY ( WITHIN THE TAX DEPARTMENT ITSELF AND WITH DEALERS ) T HERE ARE PROBLEMS IN IT INFRASTRUCTURE -- H ARDWARE, S OFTWARE, C ONNECTIVITY ( WITHIN THE TAX DEPARTMENT ITSELF AND WITH DEALERS ) D IFFERENT S TATES ARE AT DIFFERENT LEVELS OF COMPUTERISATION D IFFERENT S TATES ARE AT DIFFERENT LEVELS OF COMPUTERISATION E VEN WHERE THERE IS SOME DEGREE OF COMPUTERISATION, THERE IS MUCH SCOPE OF IMPROVEMENT IN IT ORIENTED FUNCTIONING E VEN WHERE THERE IS SOME DEGREE OF COMPUTERISATION, THERE IS MUCH SCOPE OF IMPROVEMENT IN IT ORIENTED FUNCTIONING T HERE ARE PROBLEMS IN IT INFRASTRUCTURE -- H ARDWARE, S OFTWARE, C ONNECTIVITY ( WITHIN THE TAX DEPARTMENT ITSELF AND WITH DEALERS ) T HERE ARE PROBLEMS IN IT INFRASTRUCTURE -- H ARDWARE, S OFTWARE, C ONNECTIVITY ( WITHIN THE TAX DEPARTMENT ITSELF AND WITH DEALERS )

36 Current problems in IT -- continued S ECONDARY DATA, i.e. MANUAL ENTRY OF DATA – INHERENTLY ERROR - PRONE S ECONDARY DATA, i.e. MANUAL ENTRY OF DATA – INHERENTLY ERROR - PRONE P ARTIAL CAPTURE OF DATA – NOT AMENABLE TO COMPUTER ORIENTED WORK - FLOW P ARTIAL CAPTURE OF DATA – NOT AMENABLE TO COMPUTER ORIENTED WORK - FLOW L ACK OF EXTENSIVE INTERFACE WITH OTHER DEPARTMENTS WITHIN THE SAME S TATE G OVT – MVD / RTO, T REASURY ETC L ACK OF EXTENSIVE INTERFACE WITH OTHER DEPARTMENTS WITHIN THE SAME S TATE G OVT – MVD / RTO, T REASURY ETC O NLY P ARTIAL DATA - SHARING WITH OTHER S TATES THROUGH TINXYS O NLY P ARTIAL DATA - SHARING WITH OTHER S TATES THROUGH TINXYS N O INTERFACE WITH OTHER TAX DEPARTMENTS – I NCOME T AX, C ENTRAL E XCISE ETC N O INTERFACE WITH OTHER TAX DEPARTMENTS – I NCOME T AX, C ENTRAL E XCISE ETC S ECONDARY DATA, i.e. MANUAL ENTRY OF DATA – INHERENTLY ERROR - PRONE S ECONDARY DATA, i.e. MANUAL ENTRY OF DATA – INHERENTLY ERROR - PRONE P ARTIAL CAPTURE OF DATA – NOT AMENABLE TO COMPUTER ORIENTED WORK - FLOW P ARTIAL CAPTURE OF DATA – NOT AMENABLE TO COMPUTER ORIENTED WORK - FLOW L ACK OF EXTENSIVE INTERFACE WITH OTHER DEPARTMENTS WITHIN THE SAME S TATE G OVT – MVD / RTO, T REASURY ETC L ACK OF EXTENSIVE INTERFACE WITH OTHER DEPARTMENTS WITHIN THE SAME S TATE G OVT – MVD / RTO, T REASURY ETC O NLY P ARTIAL DATA - SHARING WITH OTHER S TATES THROUGH TINXYS O NLY P ARTIAL DATA - SHARING WITH OTHER S TATES THROUGH TINXYS N O INTERFACE WITH OTHER TAX DEPARTMENTS – I NCOME T AX, C ENTRAL E XCISE ETC N O INTERFACE WITH OTHER TAX DEPARTMENTS – I NCOME T AX, C ENTRAL E XCISE ETC

37 Current problems in IT -- continued S OFTWARE – NOT ALIGNED TO CHANGING NEEDS – TIME LAG IN UPDATION / UPGRADATION S OFTWARE – NOT ALIGNED TO CHANGING NEEDS – TIME LAG IN UPDATION / UPGRADATION L OWER LEVEL OF IT SKILLS AMONG THE S TAFF L OWER LEVEL OF IT SKILLS AMONG THE S TAFF P OOR RESPONSIVENESS TO THE DEALERS ’ NEEDS P OOR RESPONSIVENESS TO THE DEALERS ’ NEEDS

38 2. D ESIRED FORM OF IT SYSTEM E XTENSIVE IT COVERAGE WITHIN EACH S TATE E XTENSIVE IT COVERAGE WITHIN EACH S TATE S IMILARITY THROUGHOUT I NDIA – SOFTWARE, INTERFACE, DATA STRUCTURE, PROCESSES S IMILARITY THROUGHOUT I NDIA – SOFTWARE, INTERFACE, DATA STRUCTURE, PROCESSES I NTEGRATED SUB - MODULES AS PER INDIVIDUAL S TATE ’ S REQUIREMENTS I NTEGRATED SUB - MODULES AS PER INDIVIDUAL S TATE ’ S REQUIREMENTS W ORK - FLOW THROUGH IT AND NOT SIMPLY DIGITISATION OF DATA W ORK - FLOW THROUGH IT AND NOT SIMPLY DIGITISATION OF DATA I NTERACTIVE DATABASES – WITH THAT OF THE OTHER S TATE & C ENTRAL TAXATION DEPARTMENTS I NTERACTIVE DATABASES – WITH THAT OF THE OTHER S TATE & C ENTRAL TAXATION DEPARTMENTS E XTENSIVE IT COVERAGE WITHIN EACH S TATE E XTENSIVE IT COVERAGE WITHIN EACH S TATE S IMILARITY THROUGHOUT I NDIA – SOFTWARE, INTERFACE, DATA STRUCTURE, PROCESSES S IMILARITY THROUGHOUT I NDIA – SOFTWARE, INTERFACE, DATA STRUCTURE, PROCESSES I NTEGRATED SUB - MODULES AS PER INDIVIDUAL S TATE ’ S REQUIREMENTS I NTEGRATED SUB - MODULES AS PER INDIVIDUAL S TATE ’ S REQUIREMENTS W ORK - FLOW THROUGH IT AND NOT SIMPLY DIGITISATION OF DATA W ORK - FLOW THROUGH IT AND NOT SIMPLY DIGITISATION OF DATA I NTERACTIVE DATABASES – WITH THAT OF THE OTHER S TATE & C ENTRAL TAXATION DEPARTMENTS I NTERACTIVE DATABASES – WITH THAT OF THE OTHER S TATE & C ENTRAL TAXATION DEPARTMENTS

39 Desired form of IT system -- continued F ACILITY TO THE A UTHORISED O FFICERS TO L OG - IN TO DEPARTMENT ’ S IT SYSTEM EVEN FROM OUTSIDE THE SYSTEM – SIMILAR TO “ WORK - FROM - HOME ” F ACILITY TO THE A UTHORISED O FFICERS TO L OG - IN TO DEPARTMENT ’ S IT SYSTEM EVEN FROM OUTSIDE THE SYSTEM – SIMILAR TO “ WORK - FROM - HOME ” IT TO BE THE SERVANT – NOT THE MASTER IT TO BE THE SERVANT – NOT THE MASTER F ACILITY TO THE A UTHORISED O FFICERS TO L OG - IN TO DEPARTMENT ’ S IT SYSTEM EVEN FROM OUTSIDE THE SYSTEM – SIMILAR TO “ WORK - FROM - HOME ” F ACILITY TO THE A UTHORISED O FFICERS TO L OG - IN TO DEPARTMENT ’ S IT SYSTEM EVEN FROM OUTSIDE THE SYSTEM – SIMILAR TO “ WORK - FROM - HOME ” IT TO BE THE SERVANT – NOT THE MASTER IT TO BE THE SERVANT – NOT THE MASTER

40 40 Existing Indirect Tax System RBI/ Banks (Payments) CBDT (PAN Verification) CAG (Audit & Accounting) CGA/SAG ( Accounting ) Facilitation Centre E-Services Centre States Tax Administration Tax Payer Interface The present systems at Centre and States do not share data. Limited sharing amongst States through TINXSYS Department Offices CUSTOMS CEN. EXCISE SERVICE TAX VAT OTHER TAXES

41 41 GST Common Portal RBI / Banks (Payments) CBDT (PAN Verification) CAG ( Audit & Accounting ) CGA/SAG ( Accounting ) Facilitation Centre E-Services Centre State A GST PORTAL Tax Administration Tax Payer Interface Customs CGST IGST SGST Proposed common GST Portal – To act as common interface, will provide core services of Registration, Returns & Payments, Accounting of taxes State B SGST

42 42 ACTIVE INTERFACE WITH IT SYSTEMS Centre State A CUSTOMSROCINCOME TAX SGST State B SGST GST PORTAL STATE IT SYSTEM SHOULD AUTOMATICALLY DISPLAY SOME REQUIRED INFORMATION FROM I TAX/CUSTOMS ETC. IN REAL TIME MAY BE USEDMAY BE USEDMAY BE USEDMAY BE USED EVEN EVEN I INN VAT VATEVEN EVEN I INN VAT VAT IN

43 THE END


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