CAAS writes a representation letter to PM on issues concerning GST,MCA and IT



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The Chartered Accountants Association, Surat (CAAS) has formally written to Prime Minister Narendra Modi, voicing significant concerns about the current approach and policies related to Goods and Services Tax (GST), Income Tax, and the Ministry of Corporate Affairs (MCA). The association feels that recent actions, particularly by the FMO regarding Income Tax deadlines, have disregarded taxpayer realities and increased compliance burdens. CAAS highlights a lack of response to previous representations and criticises policies that prioritise penalties over planned taxation and cause unnecessary hardship.

The Chartered Accountants Association, Surat has written a representation letter to the PM Shri Narendra Modi, expressing their dissent over actions and approach of FMO with relation to GST, Income Tax, MCA etc. The letter also contains their demands in these areas. Read the official representation letter below:

Ref: CAAS/Representations/2020-21/04 Date:26-01-2021

To,
The Prime Minister,
152, South Block,
Raisina Hills,
New Delhi - 110011

Sub: Dissent over Actions and Approach of FMO, MCA and Others

Respected Pradhan Sevak,

As a community of tax payers and contributories to the growth of the nation, we write this, with a pained heart, that the recent actions and approach of FMO, MCA and others in our own Government, do not reflect the welfare mind state required of a People’s Government. Our discomfort is not with the Government but with the policies charted against its own people. While numerous representations have been recently sent by the Trade, Industries and Professionals w.r.t GST, Income Tax and MCA, none of them had been responded either by FMO or the MCA. The most glaring example is recently issued Order F.NO. 370153/39/2020-TPL u/s 119 of Income Tax Act, 1961 which had been issued in total disregard of the reality and the expectation of the taxpayers at large. Vide the said order CBDT had rejected all the representations received to extend due dates of Income Tax, which has a direct relation in increasing the compliance burden on the Trade, Industry and General Public in the form of Late Fees, Interest and Penalty. Para 9 of the said order made it clear, that the Officials in charge of the FMO are more interested in setting a trend of discipline in a time of pandemic. Even more shocking was the revelation in black and in white before the Court of Law, that these officials chose to compare due dates of Income Tax filings in other countries with different set of laws, cultures and infrastructure, instead of comparing the leniency allowed to their own department  officials in internal due dates against the basic requirement of adequate time for proper compliance requested by their own countrymen, in a total disregard to the Article 14 (Equality among Equals) of the very document that came inforce on this very day, 71 years ago. Whether it may be under GST, Income Tax or Corporate Laws, it seems highly unclear of the present policies which gives priority to:

CAAS Writes to PM on GST, IT and MCA Issues

a. unplanned revenue in the form of Late Fees, Interest and Penalty instead of the Planned Taxation,
b. indulge into unproductive compliances,
c. avoidable litigations;
d. frequent changes in laws;
e. unstable IT infrastructure;
f. free hand to tax officials; or
g. rigid approach towards trade, industries or professionals;
h. implementation of laws without taking the Trade, Industry or the Professionals into confidence; and
i. inflicting greater hardship on the public at large.

This high headedness has made us join hands with more than 100 different associations, which do not desire that citizens engage in petty low life compliance processes, but intends to engage in processes productive to them and the economy, and with a common goal of making our country a super-power. Since, our earlier representations were not responded by the Finance Minister, we are escalating this matter with your good self.

To view / download the complete representation letter, find the enclosed attachment

FAQ :

The Chartered Accountants Association, Surat (CAAS) has written the representation letter.

The letter raises concerns about the actions and approach of the FMO concerning GST, Income Tax, and MCA, and outlines the association's demands in these areas.

The letter points to an order rejecting representations to extend Income Tax due dates, which increases compliance burdens through late fees, interest, and penalties.

CAAS believes the FMO's approach disregards taxpayer realities, prioritises discipline over welfare during the pandemic, and compares Indian tax deadlines unfavourably with other countries without considering local context.

CAAS criticises policies that focus on unplanned revenue from penalties, lead to unproductive compliance, unnecessary litigation, frequent law changes, unstable IT infrastructure, and a rigid approach towards trade, industry, and professionals.

Yes, CAAS states that numerous representations have been sent by trade, industries, and professionals regarding GST, Income Tax, and MCA, but none have been responded to by the FMO or MCA.




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