Cabinet nod for tax admin reform panel

Sources say Parthasarathi Shome, advisor to the FM, may head the panel

The Cabinet on Tuesday approved a Tax Administration Reform Commission (TARC) to review enforcement of tax policies and laws, in line with global best practices.

The commission, to consist of a chairman, two fulltime and four part-time members, is to periodically give reports for implementation to strengthen the capacity of the tax system, according to an official statement.

Sources said Parthasarathi Shome, advisor to the finance minister, was likely to head the panel.

It is to help remove ambiguity in application of tax policy and tax laws, establishing a stable tax regime and a non-adversarial tax administration. Its term will be 18 months. Of the four part-time members, at least two will be from the private sector.

The two fulltime members will be one each with a background in revenue service pertaining to income tax and central excise & customs, respectively.

A proposal to this effect was contained in the Budget for 2013-14. The move came after many companies had criticised the government moves to suddenly change tax policies, particularly in reference to the retrospective amendments to the Income Tax Act and the General Anti-Avoidance Rule.

Properties acquired
The sale of properties acquired under the Income Tax Act will no longer require approval of the Cabinet.

The Cabinet Committee on Economic Affairs has okayed procurement of up to 10,000 buses and ancillary infrastructure for urban transport under the Jawaharlal Nehru National Urban Renewal Mission for cities and towns, particularly in hilly states. The project cost is Rs 6,300 crore and the estimated additional central assistance is about Rs 4,450 crore.

The Cabinet Committee on Skill Development cleared a proposal for continuation of initiatives in this regard, with an outlay of Rs 2,000 crore to train about 2.5 million candidates during the 12th Plan period (2012-13 to 2016-17).

The committee cleared the proposal with certain changes, under which an incentive at the unit rate of Rs 3,000 would be paid to vocational training providers for ensuring placement of at least 70 per cent of the batch at a minimum salary of Rs 6,000 a month. The per hour per trainee expenditure allowed under the scheme has also been increased.

Dues of 10 sick PSUs
CCEA approved a proposal for providing non-Plan budgetary support of Rs 128.3 crore for payment of statutory dues such as provident fund and salaries in 10 public sector units from October 1, 2012, to March, 31, 2013. The PSUs are Hindustan Cables, HMT, HMT (Watches) Ltd, HMT (Chinar Watches) Ltd, Nagaland Pulp & Paper Co, Triveni Structurals, Tungabhadra Steel Products, Nepa, HMT Bearings and Hindustan Photo Films.

Other
It was decided to establish an International Centre for Drinking Water Quality in Kolkata.