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Budget 2019 expectations: Demand for elimination of tax on digital transaction grows
The government should plan on introducing a single tax rate by merging both the slabs and keeping the same at 15 per cent which was promulgated as a revenue neutral rate.
Demanding to tie up the loose ends in the digital transactions and ensure higher tax collections through direct tax kitty, the industry insiders have demanded from the finance minister Nirmala Sitharaman to waive-off tax being levied on the digital transactions. They are of the opinion that the twin slab rates of 12 per cent and 18 per cent add to the classification dispute and also promote rate buying among various sectors prone to tax evasion.
Rajat Mohan, Partner, AMRG & Associates said, "Eliminating transactional tax on all digital transactions should be one of the key targets of MODI 2.0, so as to propel the economy in the direction of trillion dollars digital era. Promoting digital transactions would help tie up the loose ends post demonitisation and ensure higher tax collections through direct tax kitty." He said that the twin slab rates of 12 per cent and 18 per cent add to the classification dispute and also promote rate buying among various sectors prone to tax evasion. The government should plan on introducing a single tax rate by merging both the slabs and keeping the same at 15 per cent which was promulgated as revenue neutral rate by chief economic advisor Arvind Subramanium before the implementation of GST.
"Re-structuring of the compliance framework under indirect tax regime needs to be implemented in a phased manner so as to ensure that taxpayers and tax officers are well conversant with the procedures much before its implementation," said Rajat Mohan of AMRG & Associates.
Batting for more clarity on E-KYC Sameer Aggarwal, Founder & CEO, RevFin said, "E-KYC using Aadhar should be allowed for certain types of organisations. This includes utilities (gas, electricity, internet, phone etc) and financial services (banks, NBFCs, insurance etc). The policy must clearly state requirements in terms of process, technology infrastructure and data security. Companies satisfying the criteria must be given full access to e KYC services without the need to make large security deposits or the need to go through intermediaries. Access to Aadhar based E KYC is important but so is the need to keep cost of that low for organisations and ease of use."
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