FM tells CBEC to nail excise evaders
Concerned over sluggish excise duty collections, Chidambaram on Thursday asked the CBEC to devise a third-party information system, review the deterrent measures and strengthen monitoring to prevent evasion.
By TNN |
NEW DELHI: Excise evaders should get ready to face more stringent measures. Concerned over ���sluggish��� excise duty collections, finance minister P Chidambaram on Thursday asked the Central Board of Excise and Customs (CBEC) to devise a third-party information system, review the deterrent measures and strengthen monitoring to prevent evasion.
The 2008-09 budgetary target of Rs 1,36,000 crore for excise would be a formidable task, the minister said, but exuded confidence that the overall target for indirect tax collections would be achieved.
Mr Chidambaram said he had advised the excise department to devise a mechanism similar to Annual Information Return (AIR) for excise duty. ���They (the board) will work out a system mirroring the AIR,��� he told reporters after inaugurating the annual conference of the commissioners and director generals of customs, excise and service tax.
For this, information on electricity consumption and value-added tax returns would be used. CBEC has also been asked to review the deterrent measures since the minister feels they have not had the desired impact.
���Commissionerates in evasion-prone industries will have to take strong preventive measures to see that there is no evasion of duty,��� Mr Chidambaram said. Field officials would closely monitor the manufacturing activity and clearances of the units to ensure there is no clandestine removal of goods and misuse of Cenvat credit ������ identified as major problems in excise collection.
Asked if the government plans to extend the production-linked levy to other sectors, the finance minister said there was no plan to do so, but added the levy would be made mandatory for gutkha manufacturers. Due to various exemptions, he said there was no one-to-one link between industrial growth and excise collections.
In Himachal Pradesh and Uttarakhand, the new units set up before March 31, 2010 have been granted tax holiday, including corporate tax holiday and excise duty exemption. According to Union Budget 2008-09, government lost over Rs 45,000 crore in 2007-08 due to various tax exemptions to the industry.
The 2008-09 budgetary target of Rs 1,36,000 crore for excise would be a formidable task, the minister said, but exuded confidence that the overall target for indirect tax collections would be achieved.
Mr Chidambaram said he had advised the excise department to devise a mechanism similar to Annual Information Return (AIR) for excise duty. ���They (the board) will work out a system mirroring the AIR,��� he told reporters after inaugurating the annual conference of the commissioners and director generals of customs, excise and service tax.
For this, information on electricity consumption and value-added tax returns would be used. CBEC has also been asked to review the deterrent measures since the minister feels they have not had the desired impact.
���Commissionerates in evasion-prone industries will have to take strong preventive measures to see that there is no evasion of duty,��� Mr Chidambaram said. Field officials would closely monitor the manufacturing activity and clearances of the units to ensure there is no clandestine removal of goods and misuse of Cenvat credit ������ identified as major problems in excise collection.
Asked if the government plans to extend the production-linked levy to other sectors, the finance minister said there was no plan to do so, but added the levy would be made mandatory for gutkha manufacturers. Due to various exemptions, he said there was no one-to-one link between industrial growth and excise collections.
In Himachal Pradesh and Uttarakhand, the new units set up before March 31, 2010 have been granted tax holiday, including corporate tax holiday and excise duty exemption. According to Union Budget 2008-09, government lost over Rs 45,000 crore in 2007-08 due to various tax exemptions to the industry.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
