Sunday, June 15, 2014

Tax audit

  • Tax audit by chartered accountants have contributed immensely to financial discipline, in view of competency, credibility and special expertise of the profession. Multiple Audits by Service Tax Audit wing, Anti Evasion Wing and CAG audit are creating unnecessary harassment. Service tax audit by chartered accountants will comprehensively improve compliance and tax collection.
  • The Reverse Charge Mechanism should be abolished, as it defeats the basic exemption limit to small service providers and is very harsh on them in the absence of registration/cenvat or refund options.
  • Advance Ruling to be available to all domestic assessees.
  • CENVAT Credit Rules be made simpler to apply and restrictions & limitations to be withdrawn completely.
  • Notifications and Circulars to be restricted to maximum twice in a year in the shape of Master Circular, at national level only. Delegated Legislation to be used only exceptionally.
  • Prosecutions to be limited only to fraudulent and wilful default, with mensrea.


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