Encouraging Voluntary Compliance
Compliance with tax laws is the shared responsibiliy of the tax payer and the tax collector. Nevertheless, a tax system can be effective only if it can systematically obtain voluntary compliance of the tax laws by the assessees. To encourage voluntary compliance, the tariff levels should be moderate, the procedures simple, and the cost burden of compliance minimal. There should be certainty about the assessments made and duty liability so as to eliminate retroactive burdens on the assessees. Further, we believe mutual trust should be the foundation on which the relationship between us and our clients are built.
To win business confidence and create a climate for voluntary compliance, we would institute the following measures:-
Prior consultation with concerned trade interests and field formations before introducing changes in laws and procedures.
Having a system of advance rulings on classification and valuation of goods and the applicability of specific duty exemption schemes.
Improving the quality of service and providing information to the trade and the tax payers by establishing Guidance units at various Customs and Excise formations. Such Guidance Centres would furnish information to the trade on issues of specific interest and also provide general information regarding laws and procedures, and the admissibility of benefits under various exemption schemes.
Make more effective use of Seminars 'Open Houses', Publicity materials, and Audio Visual Media for dissemination of information.
Create a Website for CBEC on the Internet and make available copies of Notifications and Circulars on line for faster communication of information to Trade and field offices. Also provide Inter-Active Telephone Help Lines.
Restructure the existing Grievance Redressal Machinery by setting up an independent ombudsman at each Customs Station and Central Excise Commissionerate.
Evolve a common business identification
number in place of separate identifiers being issued for Customs, Central
Excise, Income Tax and Foreign Trade (DGFT) purposes.