Search, seizure & arrest to protect interest of genuine taxpayers

Mumbai, Dec 11 Search, seizure and arrest to protect interest of genuine taxpayers and as a deterrent for tax evasion. This was the observation made by the participants of an event which was held by PHD Chamber on December 10.

Pradeep Multani, President, PHD Chamber of Commerce and Industry, says that the provisions for Search, Seizure and Arrest are basically provided to protect the interest of genuine tax payers and as a deterrent for tax evasion. He was speaking at the at the Seminar cum Webinar on Burning Issues in Summon, Search, Seizure and Arrest under GST, organised by PHD Chamber of Commerce and Industry.

He said that the introduction of the Goods and Services Tax (GST) was significant step in the field of indirect tax reforms in India. GST represents not just a change in the indirect tax regime, but also a business transformation. Gearing up for such a change in the processes, understanding the new legislation and redesigning the IT systems for being GST compliant is the need of the hour. He opined that the focus is required on enhancing ease of doing business, reducing cost of doing business, creating a level playing field and ensuring timely justice.

Bimal Jain, Chairman, Indirect Taxes Committee, PHD Chamber, stated that the GST Authorities are issuing summons in a casual manner and directly at the level of CEO and CFO of the companies. In this regard, he opined that the summons must be issued as a last resort and GST authorities should refrain from calling on information and documentation already provided or uploaded by companies online.

Pawan Arora, Co-Chair, Indirect Taxes Committee, Partner at Athena Law Associates, stated that the administration structure post GST was supposed to be based on the principle of pooled sovereignty, mutual co-operation, cross reporting, meaningful control. It is a very settled proposition of law that the intent/rationale of the lawmakers is never to mitigate the rights of the taxpayer and cause unnecessary and unwanted trouble to them. Only a vigilant approach can save the day.