Govt should bring petrol, diesel under ambit of GST: NCCL

Source: The Hitavada      Date: 25 Apr 2018 12:03:22


Business Bureau

A TRADE delegation under the leadership of Vishnukumar Pacheriwala, President of Nagpur Chamber of Commerce Limited (NCCL) recently met Finance Secretary Hasmukh Adhia. In the meeting, CA Kailash Jogani, Immediate Past President of NCCL briefed the Finance Secretary about the problems and suggestions from trade and industry. After welcoming Adhia, NCCL delegation appreciated the bold move of the Government for implementation of GST.

According to Jogani, the increase in GST revenue indicates that there is a need to reduce the Goods and Services Tax (GST) rates. Jogani suggested that the compliance burden of filing the GST returns should be made simple by the month of May. This could be achieved by introducing a single return on a quarterly and half yearly basis. He also requested the Government to take steps to bring petrol and diesel under the GST network and till then for the time being reduce the Excise Duty on petrol and diesel. “As the Reverse Charge Mechanism (RCM) is tax neutral and increases the compliance burden on the business entities, it is requested to remove it from GST,” he said.

On direct taxes, NCCL delegation expressed concern over high penalty on search and seizure operations and very harsh provisions of prosecution. Due to which it was difficult for the assessee to disclose and come clean during the search and seizure operations. NCCL delegation suggested to bring Block Assessment Concept with 60 per cent tax. As per Jogani, Section 115BBE provides for tax on income without concrete source at the higher rate of 60 per cent plus heavy penalties which totals to 115 per cent. The rate of 30 per cent was increased to 60 per cent at the time of demonetisation.

According to NCCL, the rate during demonetisation was justifiable but post demonetisation it is creating severe hardships to the common people in trade. In the country there are a number of unorganised sectors where the proof of source of income is difficult to establish and as such the new amendment in section 115BBE should be removed, the delegation added. The assessee faces lot of challenges and harassments for valuation of the property by the departments valuation officer. Instead, Government should allow the assessee to value their properties from the Government approved valuers.

The small properties having valuation upto Rs 30 lakh must be exempted from deemed taxation levied under various section like 43CA, 50C and 56. NCCL in its pre-Budget representation couple of years back requested to introduce Tax Deducted at Source (TDS) on the interest paid by co-operative banks and co-operative societies and the same was partially accepted by the Ministry of Finance.
Thereafter, co-operative banks were brought under ambit of Tax Deducted at Source but co-operative societies were left out. Due to the TDS fear, the small investors specially senior citizens and villagers are forced to make deposits in co-operative societies. The deposits made by these investors in various small co-operative societies are left at the mercy of the society office-bearers and there are chances of losing their money. “Thus, we request the Ministry of Finance to bring co-operative societies under the ambit of TDS,” he said.

Furthermore, the income from the agriculture activity is exempted from taxation, irrespective of the holding of agriculture land by a person. This results in tax free income and benefits to the big agriculturists, industrialists, politicians and other Government officials who do not really required tax concession. Government should bring such people under taxation ambit though at concessional rates or make new regulation i.e., a person declaring agriculture income of more than Rs 50 lakh to be covered under compulsory audit by an independent chartered accountant. Present were Pradeep Jajoo, Govind Pasari, Anil Sharma, Principal Director General of NADT Dr Pushpendra Puniya, Director, Rajeev Ranade, Additional CI-T Kishore Dhule, ACI-T Awadesh Titarmare and ACI-T Akshay Tapadiya.