(a) whether the cost of collection of direct and indirect
taxes in the country are the lowest in the world;
(b) if so, the details thereof and reasons therefor;
(c) the steps taken by the Government to check tax evasion
and widen the tax net;
(d) whether computerization has helped to widen tax
base; and
(e) if so, the details thereof?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a)&(b): Information is being collected and will be laid on
the Table of the House.
(c): The steps taken by the Government to check tax evasion
and widen the tax net include issue of guidelines for scrutiny
of returns, close scrutiny of the financial statements of
companies through audit, identification of assessees and
commodities prone to evasion, undertaking search, seizure
and survey actions in appropriate cases, setting up of Tax
Information Network, introduction of a Banking Cash
Transaction Tax in respect of cash withdrawals from banks
subject to a certain limit, making it obligatory for all
banks to report all deposits which are exempt from Tax
Deducted at Source on interest, etc. The intelligence
gathering machinery has been strengthened. The various
equipments essential for an effective anti-evasion set up
such as transport, communication equipments have been
augmented. Further, Service Tax has been imposed on nine
new services, excise duties have been imposed on branded
articles of jewellery, road tractors, etc.
(d) & (e): In so far as Direct Taxes are concerned,
computerization is being used to identify stop filers.
In addition Tax Information Network (TIN) has enabled
electronic filing of TDS returns which has been made
mandatory for corporate and Government deductors. The
data received through these e-TDS returns is being used
for identification of non-filers of TDS returns and for
matching tax deducted at source and tax deposited in the
Government account. In so far as Indirect Taxes are
concerned, information is being collected and will be
laid on the Table of the House.