‘New TCS rule will increase compliance burden’
   Date :14-Feb-2020

New TCS rule will increas
CA O S Bagdia, Guest speaker CA Naresh Jakhotia, CA Ashok Chandak, VIA President Suresh Rathi & CA Sachin Jajodia 
 
Business Bureau :
 
VIA Taxation & Corporate Law Forum has organised a session on ‘Union Budget 2020 & Analysis of proposal of Direct Tax’ by renowned CA Naresh Jakhotia. President Suresh Rathi in his welcome address expressed happiness over the abolition of the Dividend Distribution Tax (DDT). Welcoming the export promotion scheme NIRVIK, he appealed to Finance Minister Nirmala Sitharaman to take efforts in order to ensure ease of doing business. Chairman of VIA Taxation & Corporate Law Forum CA Ashok Chandak, welcoming the audience discussed the background under which the Budget was presented and the thrust of the Government in the Budget.
 
He expressed displeasure over the removal of deductions and exemptions if the taxpayer opts for the new tax slab rate. CA Naresh Jakhotia covered all the major highlight of direct tax proposals in the Union Budget 2020. The new tax regime may not benefit the majority of the taxpayers who are in the tax bracket of Rs 5 lakh to Rs 10 lakh as denial of other deductions and exemptions like denial of standard deductions, HRA, LTC, additional depreciation, interest on saving account, housing loan interest, set off & carry forward of loss against house property, deductions U/s 80C, 80D etc., may result nullify the benefit of new tax slab. The new tax benefit would seriously hamper the saving habits of the taxpaying populations and would not be in the national interest, he opined. He has advocated the old system of levying tax as it ensures better equality amongst the taxpayers. In an attempt to widen or deepen tax base, he covered various provision incorporated in the TDS & TCS Net.
 
He opined that the TCS on Overseas tour package is surely going to widen the tax base. However, not putting a threshold will increase the compliance burden of the tour operator. Similarly, he expressed his concern on TCS rate of 5% required to be done under Liberalised Remittance Scheme. He said that even remittance to son, family etc for education and health would suffer by virtue of this tax withholding provision. TCS on sale of all goods by person with turnover of more than Rs 10 crore will seriously affect the ease of doing business and will not only increase the compliance burden of the business house but would also be an are of litigation and disputes.
 
He highlighted various difficulties in its compliances and the trouble that the industry would be facing because of new TCS proposed U/s 206C(1H). The Government need to ensure that the business are not unnecessarily burdened with the unwanted compliance activities. Earlier, CA Ashok Chandak, Chairman of VIA Taxation and Corporate Law Forum welcomed CA Naresh Jakhotia with floral bouquet. CA Sachin Jajodia, conducted the proceedings. CA O S Bagdia proposed a formal vote of thanks. Prominently present were CA Ravindra Lashkare, CA Mahendra Jain, Rajendra Bhutada, Yash Verma, Monika Rathi, representatives from industries like Malu Paper Mills Ltd., JSW, RC Plasto Tanks & Pipes, Vicco Laboratories, Karran Enterprises and Infrastructures and professionals.