CA Organisation expresses Dissent over Actions and Approach of FMO, MCA

The Chartered Accountants Association Surat has submitted representation before the Prime Minister of India regarding the Dissent over Actions and Approach of FMO, MCA and other.

As a community of tax payers and contributories to the growth of the nation, we write this, with a pained heart, that the recent actions and approach of FMO, MCA and others in our own Government, do not reflect the welfare mind state required of a People’s Government. Our discomfort is not with the Government but with the policies charted against its own people.

While numerous representations have been recently sent by the Trade, Industries and Professionals w.r.t GST, Income Tax and MCA, none of them had been responded either by FMO or the MCA. The most glaring example is recently issued Order F.NO. 370153/39/2020-TPL u/s 119 of Income Tax Act, 1961 which had been issued in total disregard of the reality and the expectation of the taxpayers at large. Vide the said order CBDT had rejected all the representations received to extend due dates of Income Tax, which has a direct relation in increasing the compliance burden on the Trade, Industry and General Public in the form of Late Fees, Interest and Penalty. Para 9 of the said order made it clear, that the Officials in charge of the FMO are more interested in setting a trend of discipline in a time of pandemic. Even more shocking was the revelation in black and in white before the Court of Law, that these officials chose to compare due dates of Income Tax filings in other countries with different set of laws, cultures and infrastructure, instead of comparing the leniency allowed to their own department officials in internal due dates against the basic requirement of adequate time for proper compliance requested by their own countrymen, in a total disregard to the Article 14 (Equality among Equals) of the very document that came inforce on this very day, 71 years ago.

Whether it may be under GST, Income Tax or Corporate Laws, it seems highly unclear of the present policies which gives priority to:

a. unplanned revenue in the form of Late Fees, Interest and Penalty instead of the Planned Taxation,

b. indulge into unproductive compliances,

c. avoidable litigations;

d. frequent changes in laws;

e. unstable IT infrastructure;

f. free hand to tax officials; or

g. rigid approach towards trade, industries or professionals;

h. implementation of laws without taking the Trade, Industry or the Professionals into confidence; and

i. inflicting greater hardship on the public at large.

This high headedness has made us join hands with more than 100 different associations, which do not desire that citizens engage in petty low life compliance processes, but intends to engage in processes productive to them and the economy, and with a common goal of making our country a super-power. Since, our earlier representations were not responded by the Finance Minister, we are escalating this matter with your good self.

Since, this is our country, and our Government, we rightly place the following demands:

A. Goods and Services Tax:

1. Timely implementation of Key GST Council Decisions:

It is regularly observed that Key GST Council Decisions, are simply declared in the press release but not implemented on time through proper notification. On several instances, decisions clearing the hardships on the taxpayers are kept on abeyance for unknown reasons. Eg. Demand of Interest on Net GST instead of Gross amount was kept lingering for more than 6 months.

Demand: If not all, key GST Council Decisions should be implemented without any further delays, backed by proper notifications.

2. Allowing Trade, Industry and Professional representation in GST Council:

On going through the agendas and the detailing of proposals put before the GST Council, and considering the level of expertise of the participants i.e. State Representatives most of whom do not possess requisite technical knowledge on the GST subject. Matters placed before the GST Councils are mostly drafted by the CBIC Officials. Thus, the Council Participants are never in a position to provide and informed and independent assessment of proposals put in the meeting.

Demand: Representatives from Trade, Industry and Professional Associations (especially belonging to SME and SMP categories) should have sufficient representation in the GST Council as full time participants.

3. Stopping Loss due to lack of co-ordination of GST Council participants:

Humongous losses have been incurred to the trade, industry and the public at large due to the lack of co-ordination of GST Council participants. Inflationary trends in several goods are a direct result of such ill-co-ordination. GST Law became effective from 1st July 2017. With its introduction, VAT and Excise regime came to an end in almost all items, except the petroleum products. It is worth noting that petroleum items have a huge impact on the lives of humans of modern age, ranging from use in plastics, paints, dyes, chemicals, textiles, easters, food items, natural gas, petrol, diesel, tar used in construction of roads and the list is infinite. Till today, VAT and Excise are still levied on Petroleum items. Although, both VAT and Excise are indirect taxes, there is no mechanism left open to get back the credit of such VAT and Excise.

To Read More Download PDF Given Below: