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Get new sectors under tax ambit

Focus of the panel is to bring in new taxpayers

New Delhi: The focus of the panel is to bring in new taxpayers and targeting sectors that remain under-taxed or untaxed. “It has given rise to a large cash economy which comprises mainly the unorganised sector that tends to include small businesses, as well as high net worth individuals,” said the report.


The committee pointed out that unorganised retailers often have a tendency not to pay taxes and most are not even registered for VAT at the state level or income tax and service tax at the central level.“For these groups, the tax administration should design, promote, and establish simple, optional presumptive tax schemes, including those based on turnover or a compounding (turnover) basis, in service tax below a threshold,” said the report.

The Committee said that CBDT should comprehensively identify reasons for the widening gap between PAN card holders and actual number of taxpayers.It also said that there is at present no structured mechanism for matching PAN with non-PAN data. “More data based investigation is required to develop such a mechanism as this would contribute to deepening and widening of the tax base.”

( Source : dc correspondent )
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