Tax Administration Reform Commission Set Up

The Ministry of Finance has issued a press release dated 13.08.2013 stating that the Union Cabinet has approved the proposal for setting up of the Tax Administration Reform Commission (TARC).

The Commission will consist of a Chairman, two full time members and four part-time members, of which at least two part-time members will be from the private sector. The Chairman will be an eminent person having wide experience of tax administration and policy making. Full-time members of the Commission will be one member each with a background in revenue service pertaining to Income Tax and Central Excise and Customs respectively. The term of the Commission will be 18 months.

The Commission will review the application of tax policies and tax laws in India in the context of global best practices and recommend measures to strengthen the capacity of the tax system in India that would reflect best global practices. The Commission will help in removing ambiguity in application of tax policy and tax laws, thereby establishing a stable tax regime and a non-adversarial tax administration. The Commission will facilitate an efficient tax administrative system that would enhance the tax base as well as tax payer base.

The context for the setting up of the ‘Tax Administration Reform Commission’ is the statement by the Finance Minister in his Budget Speech for 2013-14 where he had said “An emerging economy must have a tax system that reflects best global practices. I propose to set up a Tax Administration Reform Commission to review the application of tax policies and tax laws and submit periodic reports that can be implemented to strengthen the capacity of our tax system.”

4 comments on “Tax Administration Reform Commission Set Up
  1. J R KHEDKAR says:

    The procedure for taxation of charitable trust requires reconsideration. The registration u/s 12A needs to be done away with. Instead like any other assesse, the question of exemption claimed u/s 11 be examined at the time of scrutiny assessment. Just because the trust has not fulfilled a formality of making an application u/s 12A, the trust should not be denied exemption u/s 11 which is otherwise allowable.

  2. Dear Sir,

    all Rented Premises Under PAGHADI system be monitor.

    also T.D.S. should be compulsory for any amt of transfer of

    Rented premises,by Land Lord.

    Atlest start with metropoli Cities Like MUMBAI, DELHI, CALCUTTA, BANGLORE. ETC.

  3. K Sreedhar says:

    Dear Sirs

    Please remove the service tax payments by an asessessee on reverse charge mechanism. It is unheard of that a recipient of a service should pay Service tax instead of the provider. It is ridiculous and it shows the incompetence of government in collecting the service tax from providers and passing the buck to the receiver of the service to pay the service upfront. This is a horrendous provision in Service Tax which is the handwork of Finance Ministry . Some bureaucrats in the Finance Ministry comes up with this type of act which is a burden on all assesseees.


  4. Mohan L. Paranjape says:

    Dear Sir

    1. If possible smoothen the procedure of TDS return filing e.g. procedure prescribed for Real Estate transactions should be made applicable to all transactions.

    2. Refund issue process should be transparent.

    3. Service Tax on all educational activities should go. 1

    4. Stamp Duty paid on purchase of flat should be allowed to be adjusted against the Service Tax payable on purchase of flat or proportionate deduction should be allowed.

2 Pings/Trackbacks for "Tax Administration Reform Commission Set Up"
  1. […] be recalled that the Tax Administration Reform Commission, headed by Dr. Parthasarathi Shome, was set up in August 2013 to suggest core reforms to the tax administration set-up in the Country. The TARC […]

  2. […] Finance Ministry has written a letter dated 24.12.2013 pointing out that the Tax Administration Reform Commission (“TARC”) has been set up to recommended measures to enhance the effectiveness and efficiency of […]

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