News:- Tax reforms: The Modernisation of direct tax systems One of the most significant moments in the history of direct tax modernisation relates to the landmark recommendations made by the task force under the leadership of Vijay Kelkar during the early years of the last decade. Keeping in mind the fundamental principles of efficiency, equity and effectiveness, the task force focused on four operational objectives, including institution of a simple and transparent system, reduction of transactions costs of tax revenue collection and compliance costs of taxpayers, alignment of incentives of taxpayers and the tax administration; and widening of the tax base. The recommendations generated a wave in the modernisation efforts of government processes and procedures. Since then, the Department of Direct Taxes has initiated several modernisation exercises. Some noted ones are: Permanent Account Number (PAN) application receipt and processing, electronic filing of tax deducted at source, development of all-India network for e-delivery of taxpayer services, e-filing of income tax returns and a centralised processing centre (CPC) at Bangalore. For successful implementation of most of these programmes, government procurement system and procedures have been considered a basic hurdle to achieve the objectives. To overcome challenges, several models have been tested in the past to simplify procedures. Out of many innovative models, a transaction based approach is seen to be one of the preferred ones being used in e-governance projects. Transaction based model is typically used in a situation where output can be defined, transaction volumes are known and predictable and transaction volumes are tied to service providers cost drivers. In transaction based pricing, what and how many resources are involved and how much time is taken to process the transaction while meeting the quality and service level agreement (SLA) requirements are variables typically managed by the service provider. Read more at:- articles.economictimes.indiatimes/2014-02-13/news/47305157_1_transaction-service-provider-tax-revenue-collection
Posted on: Fri, 14 Feb 2014 12:27:47 +0000
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