Industry & Economy
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Industry Associations
Madras Chamber seeks better tax norms for assessment
Our Bureau
Chennai
,
Jan. 9
THE Madras Chamber of Commerce and Industry (MCCI) has mooted "bold experiments" in changing the procedures of assessing for direct taxation, so that assessees "are made to feel comfortable in the tax environment".
In its pre-Budget memorandum to the Government, the chamber has said that nearly 96 per cent of the total direct tax revenues are secured either by tax deducted at source or advance tax; the remaining four per cent comes from assessment.
In indirect taxation, now that the Government has reduced excise rates, the Central Excise department should begin to accept self-declaration as a legitimate determination of the tax.
"The penalties for dealing with the defaulters are already in the statute books."
The chamber also observed that while service tax is a Central levy, the entire trade and service activities that are taxed are within the control of the State Governments.
In many places it is the Shops and Establishments Act of the State Government or the municipality or the corporation that is best suited identify and levy the service tax.
"It would be ideal if the Central Government displays courage to shift the entire responsibility for collection of the service tax to the State Governments," the chamber said. The current method of evaluating services seems `ill-conceived', it added.
The chamber has also demanded that a set-off be allowed on payment of minimum alternate tax (MAT), so that what is paid under MAT can be deducted from the tax liability in the years the company may have to pay the regular tax. It has also asked for a quick introduction of value-added tax.
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