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CX - Rule 6 of CCR is not enacted to extract illegal amount - legislature has not enacted any provision by which credit, which is other than credit attributed to input services used in exempted goods or services can be recovered from the assessee - 25 cr. Demand set aside: CESTAT (See 'Breaking News') UN Assembly endorses action plan on post-2015 development financing (See 'Mixed Buzz') Union Cabinet passes resolution stating Dr Kalam was a visionary scientist & true nationalist; Parliament adjourned Summer crops prospects are good so far except in four States: IMD Chief ST - Job worker paying ST upon insistence by audit - Merely because department has detected and assessee has paid ST, that alone is not sufficient to allege that there is suppression - Credit rightly availed: CESTAT (See 'Breaking News') Good Bye Mr Kalam (See 'DDT') Rubaru with RS Panel on GST Bill - A humbling experience! (See 'ST se GST tak') I-T - Whether when Revenue initially takes approval only for Survey but finds cash at assessee's premises, same Survey can be converted into Search after taking further approval - YES: HC (See 'Breaking News') ST - Shamianas for Magh Mela in Allahabad - No Tax (See 'DDT') ST - No specific head of service was proposed in SCN nor confirmed in o-in-o - SCN + order are vague - classification of taxable service must be specified in SCN in order to fasten liability of ST - demand of Rs.4.12 cr set aside: CESTAT (See 'Breaking News') MSME Sector accounts for above 37% of GDP; 44% of India's export (See 'Mixed Buzz') Public Institutions pay avoidable ST - CAG (See 'DDT') VAT - Whether when assessee has taken steps to comply with requirement of submitting statutory declaration forms, though belatedly, it is open to Revenue to demand higher rate of tax alleging failure of compliance - NO: HC (See '2015-TIOL-1691') Former President Dr APJ Abdul Kalam dies in Shillong Govt divests 5% stake in PFC; mops up Rs 3747 Crore Delhi Customs (Preventive) seizes seven aircrafts for alleged violation of Customs Act Wealth Tax Return Date also extended to Aug 31, 2015 (See 'Instructions' in Income Tax) IGI Airport Customs nabs pax coming from Dubai with gold worth Rs 64 lakhs, concealed in form of winding plates of motor and meat grinder Gujarat HC sets up Panel to ensure basic facilities like housing and hospitals to work force at Alang Shipyard Cus - Re-labelling of boxes of Vitrified & Glazed tiles with higher MRP after import - Sec 3(2) will not become ineffective in absence of Sec 4(A)(4) of CEA, 1944 for import made prior to 14.05.2003 - ABB decision does not apply - Differential CVD duty demand upheld: CESTAT by Majority (See 'Breaking News') SIT recommendations on curbing black money generation - FM says it's too early to firm up mind for follow up actions Major Terror Attack in Gurdaspur - 9 killed; PM holds high-powered meet CBDT notifies 1081 as Cost Inflation Index for FY 2015-16 (See Notification No 60 in 'What's New') 88th Amendment to the constitution - Precursor to GST? (See 'DDT') ST - Charges of documentation arise at request of customer and are paid outside of Agreement to appellant only - these activities constitute service provided directly to customer and do not constitute services provided on behalf of Principal, hence it would not fall under BAS: CESTAT (See 'Breaking News') Withdrawal of Accredited Client Programme facility causing turmoil (See 'Guest Column') Income tax - Whether if during search in assessee's premises, a locker key of another assessee is seized, market value of jewellery stored in such locker is to be added in income of searched assessee as deemed income - YES: HC (See 'Breaking News') Place of removal under Central Excise - A note of caution (See 'Guest Column') SCN Pending for 12 years - Will JNCH Reply? (See 'DDT') CENVAT Credit on outward transport after 01.04.2008 - Credit is admissible in case of FOR destination sale - Amendment to CCRs, 2004 with effect from 01.04.2008 does not alter admissibility - HC sets aside order of Tribunal (See 'Breaking News') CX - Rule 6 of CCR is not enacted to extract illegal amount - legislature has not enacted any provision by which credit, which is other than credit attributed to input services used in exempted goods or services can be recovered from the assessee - 25 cr. Demand set aside: CESTAT (See 'Breaking News') UN Assembly endorses action plan on post-2015 development financing (See 'Mixed Buzz') Union Cabinet passes resolution stating Dr Kalam was a visionary scientist & true nationalist; Parliament adjourned Summer crops prospects are good so far except in four States: IMD Chief ST - Job worker paying ST upon insistence by audit - Merely because department has detected and assessee has paid ST, that alone is not sufficient to allege that there is suppression - Credit rightly availed: CESTAT (See 'Breaking News') Good Bye Mr Kalam (See 'DDT') Rubaru with RS Panel on GST Bill - A humbling experience! (See 'ST se GST tak') I-T - Whether when Revenue initially takes approval only for Survey but finds cash at assessee's premises, same Survey can be converted into Search after taking further approval - YES: HC (See 'Breaking News') ST - Shamianas for Magh Mela in Allahabad - No Tax (See 'DDT') ST - No specific head of service was proposed in SCN nor confirmed in o-in-o - SCN + order are vague - classification of taxable service must be specified in SCN in order to fasten liability of ST - demand of Rs.4.12 cr set aside: CESTAT (See 'Breaking News') MSME Sector accounts for above 37% of GDP; 44% of India's export (See 'Mixed Buzz') Public Institutions pay avoidable ST - CAG (See 'DDT') VAT - Whether when assessee has taken steps to comply with requirement of submitting statutory declaration forms, though belatedly, it is open to Revenue to demand higher rate of tax alleging failure of compliance - NO: HC (See '2015-TIOL-1691') Former President Dr APJ Abdul Kalam dies in Shillong Govt divests 5% stake in PFC; mops up Rs 3747 Crore Delhi Customs (Preventive) seizes seven aircrafts for alleged violation of Customs Act Wealth Tax Return Date also extended to Aug 31, 2015 (See 'Instructions' in Income Tax) IGI Airport Customs nabs pax coming from Dubai with gold worth Rs 64 lakhs, concealed in form of winding plates of motor and meat grinder Gujarat HC sets up Panel to ensure basic facilities like housing and hospitals to work force at Alang Shipyard Cus - Re-labelling of boxes of Vitrified & Glazed tiles with higher MRP after import - Sec 3(2) will not become ineffective in absence of Sec 4(A)(4) of CEA, 1944 for import made prior to 14.05.2003 - ABB decision does not apply - Differential CVD duty demand upheld: CESTAT by Majority (See 'Breaking News') SIT recommendations on curbing black money generation - FM says it's too early to firm up mind for follow up actions Major Terror Attack in Gurdaspur - 9 killed; PM holds high-powered meet CBDT notifies 1081 as Cost Inflation Index for FY 2015-16 (See Notification No 60 in 'What's New') 88th Amendment to the constitution - Precursor to GST? (See 'DDT') ST - Charges of documentation arise at request of customer and are paid outside of Agreement to appellant only - these activities constitute service provided directly to customer and do not constitute services provided on behalf of Principal, hence it would not fall under BAS: CESTAT (See 'Breaking News') Withdrawal of Accredited Client Programme facility causing turmoil (See 'Guest Column') Income tax - Whether if during search in assessee's premises, a locker key of another assessee is seized, market value of jewellery stored in such locker is to be added in income of searched assessee as deemed income - YES: HC (See 'Breaking News') Place of removal under Central Excise - A note of caution (See 'Guest Column') SCN Pending for 12 years - Will JNCH Reply? (See 'DDT') CENVAT Credit on outward transport after 01.04.2008 - Credit is admissible in case of FOR destination sale - Amendment to CCRs, 2004 with effect from 01.04.2008 does not alter admissibility - HC sets aside order of Tribunal (See 'Breaking News')
 
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Making People Pay - The Economic Sociology of Taxation

Authored by Sibichen K Mathew
Published by Global Vision Publication House
No of Pages: 299
Price: Rs 599

Legal Corner Icon

By N Nityananda, CA

Legal Corner IconMANY novels and fictions are so gripping that readers once they start seldom stop till the last page. That cannot be said about books on Economics and more so on taxation!! Here is a well researched and multidimensional book on taxation, which makes an interesting reading of a dry (?) subject like taxation.

The book starts of with the question in every taxpayer's mind – Why should I pay taxes? The author has illustrated various justifications of the taxpayers for the tax evasion and dodging. The reasoning ranges from a fundamental issue of absence of reciprocal benefit from the state to the intolerable fact of tax evasion perceived in their surroundings. It is in this constant dilemma of a citizen, the book ‘Making People Pay' – the Economic Sociology of Taxation is to say the least – is the light at the end of the tunnel. The credibility of this book is higher as the author is a scholar on the subject and he has alongside direct experience in the tax machinery of our vast country.

The system of taxation has traveled a long way from the historic approach of a smooth process akin to a bee collecting honey from a flower to a world of legal complexity, administrative heterogeneity and political inconsistency. But has it taken the entire tax paying population alongside is a difficult question to answer. The book rightly analyses that the economic models are unable to capture the behaviors of taxpayers.

The chapter on Indian and global tax history makes an interesting reading. The evolution of taxation through a series of wars far and wide, colonialism and tax revolts are well captured. Today we read in newspapers about the crores of rupees of taxes paid by Bollywood and cricket stars. The book compares this trend with the tax regime during ancient India, particularly of 324 BC (Mauryan Kingdom), when dancers and actors paid good amount of taxes compared to the businessmen. The pilgrim taxes and taxation used as a tool of discrimination amongst religions by rulers of both ancient and medieval India.

Then comes the relationship and conflicts of ideology between Politics and Economics. Author has analyzed the dilemmas in public policy, as there is an inevitable conflict of ideology between the political commitments and long-term desirability of such commitments for the country. He has also critically analyzed the link between black money, voluntary political funding and public policy compulsions.

The heart of this book is the analytical discussions on the subjects of tax evasion and tax enforcement. The author displays his vast knowledge and experience while dissecting the causes and consequences of tax enforcement, particularly income tax raids. This may be the first such study in the world that has analyzed the sociological and economic aspects of the invasion to private lives by an enforcement agency. From the how and why of tax evasion to the interviews of those who were raided by the investigation wing of the department adds value to the reader. The study has results which are astonishing, to say the least 73% of the respondents say that the IT raid helped in organizing their business better and 84% say that they are more systematic in recording and maintaining the accounts and 53% say that they have achieved better financial results after the raid only. Only 15 to 32% complain of losing their business to losing their customers on account of raids. The research by the author also points out the 76% of the respondents agree that in recent years there is better tax compliance. But it is surprising to find that many taxpayers openly admitted that they evade their taxes even after an income tax search.

The book clearly showcases the modus operandi followed by tax evaders and the reasons for tax evasion as perceived by them. These facts are not collected from any official records, but from the data gathered from the taxpayers themselves. The author has also delineated the expectations of the taxpayers from the government, tax system and tax officials. His analysis of the fiscal challenges for the developing economies in the context of globalization and tax competition is scholarly and academically stimulating.

The book has its own share of humour with cartoons by gifted cartoonist Mr.Sajjive Balakrishnan. One cartoon depicts how ‘Speech is Silver' to a taxman and ‘Silence is Golden' to a taxpayer!!! The forewords written by the SSN Murthy, Chairman CBDT and M N Venkatachaliah, former Chief Justice of India are very inspiring and informative.

When I started reading the book, I was engrossed and when I completed the reading, I felt more enriched and rewarded. It is a must read to all citizens – young and old. The details can be found at http://makingpeoplepay.blogspot.com.


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