Indore: The Central government has a clear message for GST and Central Excise and Customs Duty and Service Tax defaulters. Take loan, pay tax and settle the case.
The Central Board of Indirect Taxes and Customs (CBIC) is targeting defaulters. It has already instructed its officers to identify them.
The basic objective of the exercise is to ensure success of Legacy Dispute Resolution (LDR) Scheme. The tax collection under the scheme has still not reached the desired level. The CBEC has written a letter to all principal chief commissioners and principal commissioner in this regard along with some instructions and advises. In a letter on November 28, the CBIC has drawn attention on the fact that realization of tax dues under the scheme are not as per expectation.
It has been learnt from some of field formations that major taxpayers, especially in the real estate sector, who are eligible to avail the scheme are not able to do so due to financial crunch. The CBIC has further stated in the letter that these taxpayers are willing to settle the case if banks provide loan for the purpose.
The Board has instructed Commissioners to identify such tax payers in their respective jurisdiction, facing similar situation.
The senior tax consultants have explained that the Board wants the tax any cost, even if the tax payers have to take the loan.
It is surprising that just to make this scheme successful at any cost, government is suggesting that businessman should take loan and pay tax dues.
-CA Krishna Garg, Secretary (CGST), Tax Practitioners Association, Indore.