Ensure timely collection of taxes: Par panel to FinMin

A parliamentary committee has underlined the need for effective coordination between various departments of the Finance Ministry to ensure that tax collection is not hampered due to procedural issues.
With reference to the Insurance Regulatory and Development Authority of India (Irdai) case (of April 2012) wherein recovery of Rs 22.58 crore service tax was delayed, the committee said officials concerned in the ministry as well as Irdai may be appropriately warned to be more careful in future.
"The ministry should adopt and apply electronic systems / approach to all its processes to streamline the methodology of clarifications and obtaining information to avoid instances of unconscionable delay," the Public Accounts Committee said in its report on 'Avoidable Expenditure on Service Tax by Irdai' tabled in Parliament today.

It further said "coordination between various departments particularly of same ministry is essential to ensure that collection of taxes is not hampered due to procedural delays to give a clarification on paying of tax."
The Department of Financial Services (DFS) took 15 long months to give clarification to Irdai on a query related to tax collection, resulting in delay of service tax.
The Finance Ministry should issue instructions to authorities/regulators and officials to observe strict financial discipline and avoid inordinate delays in matter pertaining to public money, the report said.
Observing that enhancing public trust in government institutions is necessary, it said "e-governance is the only way ahead, all departments ought to adopt latest tools/ electronic systems at their disposal to ensure that... inordinate delays are averted in future."

The committee hoped that the Finance Ministry will keep in mind the urgency to address citizens' grievances while developing procedures for timely settlement of issues under the GST regime.