‘National tribunal to solve GST disputes required’
Global consultants Pricewaterhouse Coopers has advocated setting up of a National Tax Tribunal for settlement of disputes when the proposed goods and service tax regime kicks off in ’10, reports Deepshikha Sikarwar in New Delhi.
By TNN |
Global consultants Pricewaterhouse Coopers has advocated setting up of a National Tax Tribunal for settlement of disputes when the proposed goods and service tax regime kicks off in ’10, reports Deepshikha Sikarwar in New Delhi.
“In order for the federal GST to work, a common interpretation and application in all states is essential. If no common binding interpretation exists, as it happens in the current scenario, where different courts might give contrary rulings, it will be difficult for taxpayers including the companies and registered dealers, to comply with the rules and to have certainty as also to avoid litigation,” said Ine Lejeune, partner and leader, PwC global VAT.
In order to overcome this difficulty, the creation of a national level tax court which would deal with any GST case, could be envisaged, she added. She also pointed out that this court would then provide a common interpretation delivered by specialised judges, that will be binding for all registered dealers and the authorities in all the states. “Setting up of a National Tax Tribunal would be a step in the right direction,” she added. Such a court is also in existence in the European Union in the form of European Court of Justice and provides binding interpretation of the European VAT provisions. Cases can be referred to the Court on VAT matters either by the European Commission by infraction procedure which is in case a member state does not implement the common EU VAT rules into its national laws or by a judge in any of the 25 member states. The judgement of the European Court of Justice containing the interpretation of the legal provision is binding and can be called upon by taxpayers in their dealings with the state tax authorities.
“In order for the federal GST to work, a common interpretation and application in all states is essential. If no common binding interpretation exists, as it happens in the current scenario, where different courts might give contrary rulings, it will be difficult for taxpayers including the companies and registered dealers, to comply with the rules and to have certainty as also to avoid litigation,” said Ine Lejeune, partner and leader, PwC global VAT.
In order to overcome this difficulty, the creation of a national level tax court which would deal with any GST case, could be envisaged, she added. She also pointed out that this court would then provide a common interpretation delivered by specialised judges, that will be binding for all registered dealers and the authorities in all the states. “Setting up of a National Tax Tribunal would be a step in the right direction,” she added. Such a court is also in existence in the European Union in the form of European Court of Justice and provides binding interpretation of the European VAT provisions. Cases can be referred to the Court on VAT matters either by the European Commission by infraction procedure which is in case a member state does not implement the common EU VAT rules into its national laws or by a judge in any of the 25 member states. The judgement of the European Court of Justice containing the interpretation of the legal provision is binding and can be called upon by taxpayers in their dealings with the state tax authorities.
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