Leakages in Tax Collection - Solutions
Below are some of the key issues related to tax collection leakages as identified by you. Kindly review and if there are additional items you know of, please share. Otherwise, please help identify specific solutions Government can implement to plug these leakages. We look forward to your inputs!
Leakages in Tax Collections - Issues
1. The same family does business in the name of several firms and files separate returns for each firm to avail exemption limit and minimum tax slab benefits
2. Most of the NBFCs are obtaining TDS exemption forms from the individuals who are even not eligible for submission of the forms and exempt them from TDS. They never show this interest as income. Hence these NBFCs are flooded with the deposit
3. The department is aware of the fact that most of the payment of banquet halls is done by cash to save on service tax but nothing is done about it
4. People show fake house rent allowance receipts to save on taxes
5. Industrial products are not declared in correct number to evade excise duty
6. Textiles industry evades by cutting lengths in to pieces and show wastage to avoid taxes
7. Diamond, gold and silver jewelery traders and gold smiths evade by not declaring received pure gold and report impurities as losses
8. The food industry charges VAT and service tax but in many cases does not pass it on to the Government
9. The dues under these central taxes sometimes arises due to over pitched assessments due to lack clarity to assessing officers. more
Leakages in Tax Collections - Issues
1. The same family does business in the name of several firms and files separate returns for each firm to avail exemption limit and minimum tax slab benefits
2. Most of the NBFCs are obtaining TDS exemption forms from the individuals who are even not eligible for submission of the forms and exempt them from TDS. They never show this interest as income. Hence these NBFCs are flooded with the deposit
3. The department is aware of the fact that most of the payment of banquet halls is done by cash to save on service tax but nothing is done about it
4. People show fake house rent allowance receipts to save on taxes
5. Industrial products are not declared in correct number to evade excise duty
6. Textiles industry evades by cutting lengths in to pieces and show wastage to avoid taxes
7. Diamond, gold and silver jewelery traders and gold smiths evade by not declaring received pure gold and report impurities as losses
8. The food industry charges VAT and service tax but in many cases does not pass it on to the Government
9. The dues under these central taxes sometimes arises due to over pitched assessments due to lack clarity to assessing officers. more
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Jun 08
1. It is not compulsory to file IT return if the shops are registered. Only when their income exceeds the limit fixed for paying the tax, will the business people pay the tax. Is their any system to know the income of a business men. For eg., Only if the count of the animals and plant are taken properly will the thread for preparing clothes can be calculated. Only when that is known, number of dresses made ready will be known, if that is calculated then the service tax that customer needs to bare and the percentage shop keeper needs to bare can be decided. 2. For a house, one will get plan approval, they will be given electricity connection but they will not pay property tax. When it comes to apartments whether the plan and the number of flats build are same?? how property tax will be collected from these people??? when it comes to people owning individual house then ground and first floor separate property tax can be collected, few ask their owners to pay the property tax and water tax. Then the registration department should have tie up with the property tax collecting department along with the plan approval department. Will this be possible??? 3. It was talked by few that in few of the families husband and wife live separately each having their own commitments, in such cases taking the women tax exception will create financial problem to the Women. So their should be tax exception for ladies. how to cat more
Jun 12
- A lot of farmers also do the same. They have large holdings and to get govt subsidies and tax exemptions they divide the land into small holdings in different family names. - A lot of small business, local kirana stores, beauty parlors, etc are not registered as businesses and do not give a receipt. - A lot of restaurants charge VAT, service tax, sales tax and a number of taxes but not sure if any of this is going to the concerned. more
Jun 10
For sr.no.1 There are different reasons for doing business on different names other than only saving tax. more
Jun 10
1. There are many money exchange agents running open business to convert currency. They should not be permitted to convert cash into foreign currency. 2. Harsher punishment for Tax evaders more
Feb 25
