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TMI BlogMonitoring of the implementation of the recommendations of TARC-updation thereof on the website of Department of RevenueX X X X Extracts X X X X X X X X Extracts X X X X ..... -mented Accepted but Under imple-mentation Under Examination II Customer focus 11 4 5 2 III Structure & Governance 15 0 3 12 IV Peoples Function 26 7 11 8 V Dispute resolution 19 10 4 5 VI Key Internal Processes 41 13 10 18 VII Information and Commu-nication Technology 24 0 21 3 VIII Customs Capacity Building 45 3 37 5 IX Information Exchange 45 4 35 6 3. The major recommendations contained in Third & Fourth Report are on Best Practices, such as impact assessment, compliance management, revenue forecasting, predictive analysis, research etc. for improving processes, structures and to enhance customer focus in decision making. The recommendations of these reports are accepted and are under implementation. 4. Webmaster, CBEC, is requested to upload on the website of CBEC, the attached statement containing the status of recommendation, contained in 1st and IInd report of TARC, concerning CBEC, which have been accepted and implemented. Enclosure CBEC's STATUS OF ACCEPTED & IMPLEMENTED RECOMMENDATIONS OF TARC FIRST REPORT - CHAPTER II CUSTOMER FOCUS S. No. Para no. RECOMMENDATIONS STATUS 1. II.8.(i) There sh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing days of their receipt; and dispose of a refund claim within 3 months of receipt of a complete claim. At present, 53 Commissionerates have been certified as 'Sevottam' compliant and BIS 1515:700 certificate has been issued by the Bureau of Indian Standard (BIS). FIRST REPORT - CHAPTER IV PEOPLE FUNCTION S. No. Para no. RECOMMENDATIONS STATUS 1. IV.5.(i) Both the departments should shift all their key operations to the digital platform so that performance can be reliably measured. (Section IV.3.d) CBEC has already initiated the IT Based Service Delivery Mechanism by way of Automation of Central Excise and Service Tax (ACES), Indian Customs EDI System (ICES), (CAAP), Risk Management System (RMS) etc. Further in order to capture critical performance data electronically, CBEC has developed a Monthly Information System (MIS). 2. IV.5.(vi) A comprehensive performance management system needs to be set up for both tax administrations by revisiting and reconstructing the RFD. (Section IV.3.d) The Director General of Inspection is renamed as Director General of Performance Management for Comprehensive Performance Management. The RFD for the year 2015-16 is available on CBEC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rities. 4. V.7.(g) To minimize the potential for disputes, clear and lucid interpretative statements on contentious issues should be issued regularly. These would be binding on the tax department. (Section V.4.b) i. On contentious issues, Board already issues clarifications from time to time. ii. After every Budget, Joint Secretary (TRU) issues a detailed letter to the field formations clearly explaining the scheme of amendments made in the legislations and also the notifications. iii. On the basis of the references received from the field formations of the trade and industry association, Board issues the required clarifications. 5. V.7.(i) The process of pre-dispute consultation before issuing a tax demand notice should be put into practice. (Section V.4.b) Instructions have been issued on 21-12-2015 to hold pre-Show Cause Notice consultation with the Principal Commissioner and Commissioners in case the demand of duty is above ₹ 50 Lakh (other than offence cases). 6. V.7.(j) Disputes must get resolved in the times lines as mentioned in the respective enactments. The law should also prescribe the consequences of not adhering to the time lines, which would be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary to provide for de-registration, cancellation or surrender of registration numbers and PAN. The Notification No. 35/2001-C.E. (N.T.), dated 26-6-2001 as amended issued under Rule 9 of Central Excise Rules already provides for deregistration/surrender of registration, revocation and suspension of registration. Similarly, in Service Tax, the Rule 4(7) of the Service Tax Rules provides for surrender of the registration, if the assessee ceases to provide the service for which it is registered. (b) Tax payment E-payment of taxes in Central Excise and Service Tax and in Customs for ACP clients and for all imports above ₹ 1 lakh, has been made mandatory. Other recommendations relate to Principal Controller General of Accounts. 2. VI.18.(b) (i) Banks should be left to authorize their branches to collect taxes, and the present process of selection of banks needs to be purely standards-based and transparent 3. VI.18.(b) (ii) Payment gateways should be increased for better customer convenience. (c) Filing of Tax Returns Scrutiny in Direct Taxes and Audit in Indirect taxes 4. VI.18.(c) (iii) Audit Commissionerates in the CBEC should undertake integrated audit covering ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o compute risk scores for each new tax debt case that reflects the likelihood of the taxpayer paying their debt based on objective criteria. Directorate General of Performance Management (DGPM) monitors the recovery of Indirect Tax arrears. 10. VI.18.(g) (ii) Stay of demand information should be uploaded electronically on the central server of the departments so that tax collectors can have system generated prior intimations regarding the expiry of stay orders. In view of the introduction of the provision for pre-deposit, there is no longer any relevance to capture such information. Nonetheless, as a part of action to build MIS for CBEC, modules are being developed to capture such information as well. (h) Related party transactions 11. VI.18.(h) (i) Both Boards should frame detailed documentation requirements for transfer pricing as well as custom valuation, keeping in view that such documentation should be reasonable, to bring certainty and predictability for the taxpayers. Circular nos. 4/2016 and 05/2016, dated 9-2-2016 have been issued for revising the systems and procedures surrounding the SVB process. 12. VI.18.(h) (ii) There is a need to align the process in Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) Third Party Exchange 1. IX.8(iii) (k) All collaborating organisations must categorise the data or information into what can be granted general accessibility and what can be considered for limited sharing or for somewhat spontaneous sharing. The categorisation must be known a priori to the other organisations. (Section IX.5.g) The CBEC's data sharing policy already categorises the data as sensitive or non-sensitive and has indicated the process through which the same could be shared with third party. 2. IX.8(iii) (l) This categorisation will help the organisations in being specific in their requests. These requests must be mutually respected. (Section IX.5.g) It has been incorporated in the CBEC Data sharing Policy. 3. IX.8(iii) (m) The data or information exchange with third parties must be on a digital platform in a seamless manner and exchange of data or information through physical media, i.e., through paper, compact disc, external drive, etc., should be avoided (Section IX.5.c) The CBEC Data Sharing Policy categorically mandates exchange of information through a secure manner in a seamless electronic environment with the third party entities. (vii) Audit and Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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