Simplification and Rationalization of Taxation – 2016-17 Budget Focus

Sarkaritel
By Sarkaritel February 29, 2016 19:59

Simplification and Rationalization of Taxation – 2016-17 Budget Focus


By TN Ashok

New Delhi Feb 29:   The Union Budget for 2016-17 has proposed measures to rationalize TDS provisions for Income Tax to improve cash flow position of small tax payers who get their funds blocked due to current TDS provisions, Finance Minister Arun Jaitley told the lok sabha today while presenting the budget and finance bill for FY 2016-17.

Government has already accepted many recommendations of Tax Administration Reform Committee he said adding he further proposed to accept a number of recommendations of Justice Easwar Committee in Budget 2016-17.

In order to reduce multiplicity of taxes, associated cascading and to reduce cost of collection, abolition of some 13 cesses, levied by various Ministries in which revenue collection is less than Rs.50 crore in a year, is proposed.

Also, Non-residents without PAN are currently subjected to a higher rate of TDS, however with amendment to relevant provision will allow that on furnishing of alternative documents, such higher rate will not apply. The facility for revision of return hitherto available to service tax assesses only will be extended to Central Excise assesses also.

Additional options for reversal of input tax credits with respect to non-taxable services provided by banking companies and financial institutions, including NBFCs, by way of extending deposits, loans and advances are proposed in Budget 2016-17.

Government of India has taken steps to reduce the cargo release time and transaction costs of EXIM trade. Jaitley also proposed to amend the Customs Act so as to provide for deferred payment of customs duties for importers and exporters with proven track record.

Indian Customs Single Window Project would be implemented at major ports and airports starting from beginning of next financial year. Also, customs baggage for international passengers are simplified as filing of baggage declaration will be required only for those passengers who carry dutiable goods.

Sarkaritel
By Sarkaritel February 29, 2016 19:59

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