Skip to main content

More compliance, less black money

By
For all those who thought that GST was just an indirect tax reform, think again.
The implementation of GST will affect direct taxes as well, helpinwideningthetaxbaseand increase taxe collections.
According to tax administrators, GST will help in curbing domesticblackmoney.“Though it is a reform for indirect taxes, there are filers who understate incomes by not reporting transactions. By doing this, they save excise, VAT, Octroi etc, and under-report their incomes. Since, GSTwillhaveapapertrail, which can be accessed by the income tax department, such practiceswilldiscouragegeneration of black money in the system,” a tax official said.
Permanent account number (PAN) and Aadhar will be used more frequently, and will be requiredtofileGSTreturns. This willhelpthetaxmentracktransactions more systematically. Therecanbemoredatamapping forauditbyrevenueauthorities.
Last year, a panel headed by chief economic adviser Arvind Subramanian had said that bringing alcohol, real estate and precious metals, including gold, withintheambitofGSTwillhelp curb blackmoney in the sectors.
Though alcohol is likely to remain outside GST, the other two key sources of illicit money are likely to get busted.
Both the Central Board of Direct Taxes and the Central Board of Excise and Customs havestartedsharingdatatomonitortheflowofblackmoneymore effectively, sources said.
“If a retailer has purchased goods from a wholesaler and is notshowingthatpurchasetoday, he will not be able to do so after GST,” ataxofficialwiththeDelhi government said.“To substantiate his purchase, he will have to maintain the books of sales, for which proper bills will be generated. SoanytraderafterGSTwill not be able to sell products or goods without bills. Once a bill is in the system, scope for black money reduces automatically.”
The dual-monitoring structure proposed within GST, involving the Centre and the states, willalsocurbtaxevasions. So, even if one set of tax authorities overlooks or fails to detect evasion, there is the possibility that the other authority may not.
Hindustan Times New Delhi,05th August 2016

Comments

Post a Comment

Popular posts from this blog

Data storage norm splits digital payments industry

By
Data storage norm splits digital payments industry  India’s nascent digital payment industry could be thrown into disarray due to the demand by the Reserve Bank of India (RBI) that all user data be stored within the country, fears an industry grouping, which has termed the decision as “heavy-handed”, even as others, including the country’s largest digital payment provider Paytm, have hailed the move.  In a bid to narrow the growing schism, the industry is planning to send a formal representation to the regulator highlighting its concerns, a top official told ET.  “We are trying to build a consensus on the issue," said the person adding that the representation to the central bank will be ready this week.  RBI on April 6, mandated all payment companies—global and local—to set up data storage facilities within India by October. The stringent six-month deadline has attracted the ire of several sections of the industry that fear it will lead to a disruption of wel...
18 comments
Read more

Offer’s for all of you

By
Great Bumper Dhamaka Offer’s for all of you... It's Time to see your Business Online, WebeCreator Offer Website Designing with domain & Email @ nominal charges. For a year For More information visit us http://goo.gl/KlpppF call on 9890151261/9773197533  drop a mail to sales@webecreator.com
Post a Comment
Read more

Sebi to finalise options in commodities today

By
The Commodity Derivatives Advisory Committee of the Securities and Exchange Board of India ( Sebi) will meet on Friday with senior officials of the latter, to give a final shape to the rules on options trading in commodity futures, beside revising the warehousing norms to ensure good delivery on settlement. The decision taken, after discussing with the advisory committee, will be placed before the regulator’s board, to finalise the regulations. According to knowledgeable sources, three commodities in each segment, agricultural and non- agricultural, have been proposed for introducing options. It appears commodities from the soya and guar segments are preferred in the former. From the non- agri segment, it is likely that gold, silver and crude oil will be finalised. All these These have better liquidity and both the National Commodity and Derivatives Exchange and the Multi Commodity Exchange, respectively, will be able to introduce the options. In the equity segments, options ar...
17 comments
Read more