Overhaul the tax dispute resolution mechanisms

Inadequate Progress

The  Direct Tax Dispute Resolution Scheme, 2016 provided a limited window of seven months (from June 1 to December 31, 2016) for settling retrospective tax disputes. This was aimed at reducing pendency of cases.

It did not receive the kind of success that was expected, as none of the companies facing the retrospective tax cases came forward even one day before the scheme was supposed to end, i.e  on 31st December, 2016. Given the response and concerns raised by various stakeholders , the deadline  was extended by a month till january end.  

The outgoing Public Accounts Committee, whose term ended on April 30, 2017 flagged concerns over “pendency for decades” even in cases involving a meager amount of Rs 750.  An estimated 3,90,000 direct tax cases are pending across various appeal forums according to the Income Tax panel, constituted in September 2016.
The Central Board of Excise and Customs launched the Prosecution Management Module (PMM) – a web-based solution for efficient monitoring and administration of prosecution cases on 2nd May, 2017.

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