TARC views likely to be rolled out soon

The government is likely to notify norms from TARC shortly: Shaktikanta Das

The revenue department is in the final stages of implementing key recommendations of the Tax Administrative Reforms Commission (TARC), which had suggested doing away with fixed targets. The department, however, isn't likely to accept the TARC's suggestion of merging the Central Board of Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC).

"The first and second reports have already been examined and the recommendations for implementation have been identified. The examination of the third and fourth reports, recently submitted, is in the advanced stages of examination," said a government official.

"The (revenue) department seems to be stuck in the cycle of achieving targets and then granting refunds to the assesses at a later stage, with interest. This practice is hurting the revenues of the government and is detrimental to image of the department. The implementation of the recommendations is likely to change that," said another official.

According to sources, the government is likely to notify these within four-five months.

Addressing a parliamentary standing committee on tax, Revenue Secretary Shaktikanta Das had said, "The government is likely to notify norms from TARC shortly."

The standing committee had said implementation of the TARC report should not take more than three months.

It had advised the revenue department the recommendations be implemented in a holistic manner, not in the piecemeal manner in which various provisions of the now defunct Direct Taxes Code had been carried out.