The Central Vigilance Commission today emphasised on the simplification of indirect tax laws — service and excise — to ensure that they are not wrongly interpreted and facilitate easy tax collection.
“Simplification of tax laws will be a welcome step. As far as possible, make it simple so that it is not subject to interpretation differently by different parties.
“For example, if two Commissioners interpret laws in different ways then there will be problems. Similarly a tax payer and his lawyer, they interpret it in different ways. Then there is a question mark whether the law is currently effective or requires amendments,” Vigilance Commissioner J. M. Garg said while inaugurating a conference here.
He said although efforts were being made in this direction, there was a need to find ways to make these laws simpler so that it is easier for tax collectors and payers.
“Instead of forcing them to pay taxes, they should voluntarily pay taxes,” Garg said at the conference on transparent and robust vigilance mechanisms organised by the Central Board of Excise and Customs (CBEC).
He said introduction of Goods and Service Tax will be a good step as it will add to simplification of the process of paying and collection of taxes.
Simplification of indirect tax collection laws will help in resolving disputes also, the Vigilance Commissioner said.
“Sometimes decisions (made by officers) are at variance, which look odd. That is why disputes are there today in tax collection. You know how much amount is today held up in tax collection due to disputes...there has to be a dispute settlement mechanism within the department so that tax collection is made simpler and there is a less pressure on the tax collection machinery,” he said, suggesting the authorities devise ways to facilitate smooth tax collection.