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Shome Heads Panel to Hear Industry’s Tax Issues Courtesy : The Economic Times

The finance ministry on Thursday constituted a forum that will interact with industry groups on a regular basis on tax-related issues or disputes, indicating the government’s intent to dispel the fears of aggressive taxation. The group will be headed by Parthasarathi Shome, adviser to the finance minister, and will meet every Wednesday. The first meeting is scheduled for August 7.

In the recent past, the government has been involved in tax disputes with some big multinational companies such as Vodafone, Nokia and Shell. The forum, however, is specifically for industry groups and not for company specific complaints. “Exchange of views between industry groups and Government on tax related issues or tax related disputes would give an opportunity to Government to hear the arguments of the industry groups,” the finance ministry said in a statement on Thursday adding that it will also give the government an opportunity to explain its stand on tax related matters.

Shome will be assisted by officers of the Tax Policy and Legislation (TPL) wing of the Central Board of Direct Taxes (CBDT) and the Tax Research Unit (TRU) of the Central Board of Excise and Customs ( CBEC). The finance ministry in its statement said that the forum will meet on a weekly basis and take up the tax related issues and disputes that concern the industry as a whole or large sections of the industry. Earlier, finance minister P Chidambaram had said that he has requested Shome to listen to at least two groups every week. “I sincerely hope that tax payers… will take advantage of this and come and make their representations,” he had said.

Last week, minister of state for finance Jesudasu Seelam had said that the government is keen to install a suitable mechanism for resolution of tax disputes between the I-T department and foreign firms operating in the country. “India is keen to provide a suitable mechanism for resolution of tax disputes between the tax department and foreign companies operating in India,” he said.

The finance ministry had in January 2013 had accepted the recommendations of the Shome Committee and deferred the controversial General Anti-Avoidance Rules ( GAAR) by two years.

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During my 37-year-old career with Income Tax department, I moved from place to place, post to post. For me, every posting was a challenge, and at the same time an opportunity to deliver.

After my retirement as Chairman of Central Board of Direct Taxes, I was invited by various institutions and NGOs to deliver talks on tax matters. While advising taxpayers across sectors, I noticed, our vast salaried class including armed and paramilitary forces, pensioners or senior citizens, NRIs, professionals and small business establishments need the right guidance. Most taxpayers do comply with their tax obligations fully. Yet, they are not somehow relaxed and are burdened with anxieties. A large number of taxpayers are not even aware that getting tax refund on time is a basic right.

In one such meeting, a middle-aged man quizzed me why could not I give tax advice 24X7. For a moment, I had no answer. He then added that I should give tax solutions online so that he does not need to come from a remote place to attend my lecture. I thanked him for his suggestion.

For a while I was restless. Already I had got myself enrolled as a Member of the Bar Council of Delhi and as an Advocate of Delhi High Court Bar Association, thanks to my law degree from the University of Allahabad. Yet, I was not sure how I could help the vast majority of taxpayers who somehow maintain a safe distance from the taxmen. I then tossed the idea of creating a tax think-tank with some of my former colleagues and highly spirited individuals. All of us immediately agreed on one count: millions of Indian taxpayers expect to access tailor-made tax research materials and seek guidance from those who have been parts of the tax machinery for decades.

That is how CTAR was born. So, be a part of our passionate journey to explain tax laws and rules in simpler words. Just drop us a few lines on any query related to direct and indirect tax or FEMA. We are at your assistance. We also look forward to hearing your experiences while dealing with the system.