India to Set Up Tax Administration Reform Commission
Aug. 29 – On Monday, the Indian government set up its first Tax Administration Reform Commission, a seven-member panel that is to be chaired by well-known Indian economist Parthasarathi Shome.
The Commission was created with the purpose to review India’s tax laws and make recommendations for the creation of a “stable and non-adversarial tax administration.” It will have a time period of 18 months to complete its work and, during its tenure, Mr Shome will have the rank of Minister of State.
Indian Finance Minister P. Chidambaram stated the importance of the Commission’s work, emphasizing that India, “[as] an emerging economy, must have a tax system that reflects the best global practices.”
Among the probable recommendations the Commission is likely to push are the creation of a more efficient structure for tax governance and a way to ensure better tax compliance by size, segment and nature of taxes and taxpayers.
Additionally, some of the main charges for the Commission are to “review the existing mechanisms of dispute resolution covering time and compliance costs and to recommend measures for strengthening them for both domestic and international taxation.”
The Commission will also look at the possibility of implementing export incentives and streamlining and making more efficient access to tax refunds.
Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia. Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore and Vietnam as well as liaison offices in Italy and the United States.
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