Tuesday, November 20, 2007

What can be tackled easier, however, is the unintentional evasion…

Is tech-driven compliance lending fizz to taxes?

How do you reconcile these numbers: Economic engine growing at 10 per cent and direct tax kitty swelling at 40 per cent? “Clearly the result of increased compliance,” says Mr Manasvi Srivastava , Vice-President Operations in BMR Managed Services, New Delhi.

“Since the growth numbers of taxes are so out of sync with growth in economy and the extra collection is indicative of increased compliance, the question of estimating the residual non-compliance assumes importance,” he adds, in the course of a recent e-mail interaction with Business Line.

“While the Finance Minister and revenue officials have expressed concern at the low growth in Central Excise revenue, the conclusions arising out of the galloping rate of growth in direct taxes as well as service tax should not escape our study.”

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