‘Taxation’ is the main source of revenue of Assam. The administration of as many as nine taxation laws including the tax on the sales and purchases of the goods, namely; the Assam Value Added Tax Act, 2003 (VAT Act) is carried on by the officers of the taxation department. The said officers, on the other hand, have as well been empowered to carry on the administration of the Central Sales Tax Act, 1956 (Central Act), a Government of India Act.
Tax on sales and
purchases of goods
The quantum of
tax, collected by the taxation department of Assam in the years 2013-14 and
2014-15 was Rs.7719.62 and Rs. 8177.16 respectively out of which the tax on the
sales and purchases of goods under the VAT Act and the Central Act were, as
below:
Year VAT Central Total
2013-14 Rs.
6288.54 crore Rs.559.47crore Rs.6848.01crore
2014-15 Rs.
6859.28 ,, Rs.
492.01 ,, Rs. 7351.29
,,
The tax, collected on the
commodities like petrol, diesel, crude oil and other petroleum products, as
were included above are, as below :
Year
Commodities VAT Central Total
2013-14 Petrol Rs.
410.84Cr. Rs.22.31 Cr. Rs. 433.15 Cr.
Diesel Rs.
702.34 ,, Rs. 88.91,, Rs. 791.25 ,,
Crude Oil Rs. 465.49 ,,
= Rs.
465.49 ,,
Others Rs. 369.57
,, Rs. 27.31 ,, Rs. 396.88 ,,
Total Rs.1948.24
,, Rs.138.53,, Rs
2086.77,,
2014-15
Petrol Rs.
451.41 ,, Rs. 17.22,, Rs.468.63
Diesel Rs.
752.91,, Rs. 96.68,, Rs.849.59,,
Crude Oil Rs. 434.01,, = Rs.434.01,,
Others Rs. 379.41,, Rs.
28.32,, Rs.407.73 ,,
Total Rs. 2107.74 ,, Rs.142.22,, Rs.2149.96,,
The taxes on the above commodities are reckoned as 27.03 and 26.78
percent respectively of the taxes, collected on the sales of goods,
as appended above.
Tax under the other
taxation laws
The taxes collected under other taxation laws,
administered by the taxation department of Assam are, as below :
Names of the taxation
laws 2013-14 2014-15
Entry tax Rs. 404.69 cr. Rs.
382.88 cr.
Professions, trades, callings
& Employment Rs. 186.36 ,, Rs.
191.38 ,,
Electricity Duty Rs. 40.54 ,,
Rs. 44.00,,
Amusement Rs. 38.93,,
Rs. 44.37,,
Luxury (Hotels, inns &
Private nursing Homes) Rs.
8.67 ,, Rs. 10.55 ,,
Specified Lands Rs. 102.43 ,,
Rs 101.66
Agricultural Income tax Rs.
89.99,, Rs. 51.07
Total Rs. 871.61,, Rs. 825.91
Uprise of tax
collection
The collection of tax
is incremental and it is always in an ascending position. A study on the
collection figures will speak for it-self :-
Year Quantum
of tax collection
1959-60 Rs.
5.24 Cr.
1969-70 Rs 18.05,,
1979-80 Rs. 59.01,,
1989-90 Rs. 288.02,,
1999-2000 Rs. 949.70,,
2009-2010 Rs.4404.91,,
It is is expected that
the collection of tax revenue will exceed Rs. 10,000.00 within a couple of
years. There has been the fast growth of industry in the State of Assam. Roads, bridges and railways
and various other construction projects have as well been undertaken and some
are running in full swing. The tax
revenue in Assam
is thus on the way of fast up-rise.
Evasion of taxes
It also, on the other hand, a
gospel truth that mounting evasion of taxes under the various taxation laws of Assam have
simultaneously been gaining the momentum. The numbers of the cases of detection
of such evasion of taxes seem to be very meagre. The following projection will
make the position very clear:
Year Numbers of cases detected Amount of tax, penalty realized
2013-14 2817
Nos. Rs. 15.10 Cr.
2014-15 2577
,, Rs. 16.41 ,,
Numbers of
assessees under different taxation laws
The
numbers of assessees under the nine taxation laws operative in Assam
are :
1. VAT 1,39.932 Nos.
2. Central tax 44, 401 ,,
3. Entry tax 5,772 ,,
4. Professions, trades, callings &
Employment tax 67,022
,,
5. Electricity
Duty
629 ,,
6. Luxury tax (Hotels,
inns, private nursing home) 557 ,,
7. Amusement tax 220 ,,
8.
Agricultural Income tax 771 ,,
It can not
be, however, agreed that all the tax payers are honest and perfect without
being associating with or indulging in
any tax -dodging activities. The amount of taxes, as shown realised above, are
only 0 .19 and 0.20 percent of the total amount of tax collected. The above
projected amount, however, included three times of penlty imposed on the evaded
taxes. So, the element of tax is very small.
Our firm conviction is that the episode of tax dodging activities are
going on in full swing and there is dearth of
of checking activities to apprehend and arrest the clandestine ways
of evasion of taxes.
Cadre
strength
The cadre stregth of the tax machineries
are, as below :
1. Commissioner of Taxes
: 1 No. (from I.A.S.cadre)
2. Additional Commissioner
of Taxes : 2 Nos (from departmental cadre)
3. Joint ,, ,, 5 ,, ,, ,,
4. Deputy ,, ,, 15 ,, ,, ,,
5. Assistant ,, ,, 25 ,, ,, ,,
6. Superintendents of Taxes 166 ,, ,, ,,
7. Inspectors of Taxes 343 ,, ,, ,,
(The Agricultural
Income Tax Officers are deputed to administer the Agricultural Income Tax Act,
1939 from the cadre of the
Superintendents of Taxes by rotation.)
The taxation
department is thus equipped with adequate man power to carry on the revenue
generating administration in the extensive area of functioning for profound
activities.
Functioning of the
tax officers
(i) The inspectors of
Taxes are to– (a) make survey in respect of each of the assessees, (b) maintain
a mirror-like survey register, (c) collect particullars from different sources,
(d) inspect the business premises and godowns
of the assessees on the basis of specific information, (e) undertake
search operation and seizure of the suspected books of accounts and goods, under
the authority of search warrant, obtained from the competent authority, when
the circumstances are so warranted and
(f) inspect transporters’ godowns, goods vehicles and take identical actions,
where there is evasion of taxes.
The Inspectors of Taxes are, in fact, to play the pivotal role in the matter of
revenue administration of the taxation department.Their mode of functioning are
unlimited, but in such exercise, discipline ought to be maintained without
projecting any high handedness or autocracy and thereby harassing the tax-payes
to make them disgruntled.
(ii)The Superitendents
of Taxes and the Assistant Commissioners of Taxes are to exercise the
quasi-judicial functions in the matter of the administration of taxation laws.
Their primary duty is to (a) make registration to a dealer, liable to pay tax,
(b)realise security money, when they feel it necessary to do so with a view to
safe -guard the interest of the revenue, (c)
make scrutiny of the periodic returns, (d) make hearing of assessment proceedings, (e) make
assessment, when there is compliance by the assesses, (f) make best judgment
assessment, when there no compliance by the assessees.
In the process of assessment, hearing of the penal
proceedings, which are quasi-judicial in nature, the
consideratioin of the field reports (Survey & inspection) and other
information, received or collected from different sources, are imperative.In
all cases, there must be a judicious approach. Both the cadres of the above
officers are to exercise the identical powers, but they are of separate ranks
with separate status. Such officers have the power of the civil court under the
Code of Civil Procedure in the field of administration.These two cadres of
officers are as well empowered to undertake the field activities besides
supervising the works of the Inspectors of Taxes and bear the burden of full responsibity of the revenue
administration of the area.
Recovery of arrears
A section of the
Superintendents of Taxes are entrusted to work as a Recovery Officer and to
exersise the powers under the Assam Land and Revenue Regulations, 1886 and the
Bengal Public Demands Recovery Act, 1913 for the purpose of recovery of the arrear dues. An active
co-operation from the tax authorities of the concerned area ought to exit for
successful recovery of the arrear taxes.
(iii) The Deputy
Commissioners of Taxes are the zonal officers-(i) They are responsible for– (a)
supervision of the works of the Inspectors of Taxes, Superintendents of Taxes
and the Assistant of Commissioners of Taxes of the units and the zones; (b)
inspection of unit offices and check post offices, (c) inspection of field
works and check post works, (d) exercise powers of suo-moto revision on
the erroneous orders, passed by the officers under him, while any such orders
are found to be prejucial to the interest of revenue, (e) maintain liaison with
the Commissioner and other superior officers in the field of administration.
(iv) The Deputy
Commissioners of Taxes (Appeals), an officer authorized by the Government from
the cadre of the Deputy Commissioner of Taxes.-They are to-(a) hear appeals,
filed by the aggrieved dealers aassees any orders passed by the Superintendents
of Taxes and the Assistant Commissioners of Taxes and deliver judgments by
administering the quasi-judicial proceedings.
(v) Joint
Commissioners of Taxes– They are responsuble to – (a) supervise the works of
the zonal officers, (b) to hear revision petition filed by the aggrieved
assessees (c) to assist the Commissioner of Taxes in different ways of
administration, as allotted or assigned.
(vi) Additional
Commissioners of Taxes- As the semi head of the department, they are to– (a)
assist the Commissioner of Taxes in different ways, as allotted or assigned,
(b) maintain co-ordination with unit, zonal officers and also with the Government, (c) hear revision petition,
filed by the aggrieved assessees.
(vii)Commissioner of Taxes is a member of
the I.A.S. cadre deputed to carry on the administration of the taxation
department with the officers appointed to assist him. He is over all responsible
for smooth performance of the revenue
administration of the department. He delegates his powers to the officers,
appointed to assist him right from the cadre of the Inspectors of Taxes to the
Additional Commissioners of Taxes. The delegatation of power rests the
prerogative of the Commissioner.
Outstanding dues
The
outstanding dues, as stood on 01.04. 2015 are as below :
1. VAT/repealed AGST & CST- Rs.
2760.38 Cr.
2. Entry tax
- Rs.
210.86 ,,
3. Professins, trades etc. tax - Rs.
2.33 ,,
4. Amusement
tax - Rs. 0.20 ,,
5. Luxury tax - Rs.
3.62 ,,
6. Specified Lands tax - Rs. 1,088.22 ,,
7. Agricultural Income tax - Rs.
55.22 ,,
Total - Rs.
4,120.83,,
The quantum of arrears
under the sales tax laws and the specified
land laws is very heavy. The aggrieved assessees take resort to the
legal forum, when they feel that levy of tax or imposition of penalty are
arbitrary and prejudial to their interest. If the recovery proceedings are
stayed and the disposal of the cases are delayed, the accumulation of arrears
becomes automatic.
Enforcement or
Vigilance wing
Almost in all States
of India, apart from the general wing ( Survey, inspection, assessment etc.
wing), an Enforcement or a Vigilance wing has been functioning, side by side,
to apprehend, arrest and prevent evasion of taxes in their respective States.
In Assam,
an Enforcement or a Vigilance wing was functioning since the year 1964 to 1983
at the unit level, zonal level and the central level. Following some complaints
of mal-activities and highhandedness, the
Government of Assam withdrew the said wing in December, 1983 and it
remains inoperative since last 33 years.
The officers might be
bad, but the administrative machineries were certainly not bad. They could have
controlled delinquent officers.If any faulty activities were substantiated,
coersive measures could have been taken. The withdrawal of the wing was not at
all desirable. It was a destructive measure. A rumour was prevailing that the
wing was made inoperative with the nexus of a section of businessmen,
politicians and administrative bosses. Such alleged mal-practices,
high-handedness equally exist in other departments including some working wings
of the police department. The officers were punished, but the wing was never demolished or dismantled. This instant
exercise was, no doubt, detrimental to the interest of the revenue. The said
wing, therefore, should be revived and allowed to be functioned under the
direct supervison of the Commissioner of
Taxes.The department is equipped with adequate man- power. The sincere,
efficient, energetic and tactful revenue minded officers may be identified,
selected and entrusted for the purpose.
The tenure of service may be limited for one year the maximum.
Bureau of
Investigation (Economic Offence)
During the
‘period of Internal Emergency in 1975, as a part of 20 Point programme of the
then Prime Minister of India, a Bureau of Investigation (Economic Offence) was
set-up in Assam to apprend the economic offenders under various departments
like forest, excise, transport, taxation, weight and measure etc. The said wing
is still functioning presently under the stewardship of an Additional Director General of Police, but
the performances of the bureau are not upto the mark. In the case of taxation
wing, there is acute dearth of man power. Even those tax officers deputed toin
the bureau, they have not been equipped with requisite powers to check the goods vehicles, transporters’godowns, railway
godowns or to apprehend the suspected goods vehicles on the road. The works of
the bureau have thus to be performed in
a half-hearted manner. When augmentation of revenue is the main aim and object
of the Goverment, it is imperative that the drainage of revenue should be
plugged and the modus-operandi of
tax evaders are to be be averted with
stern, but hygienic way of action.
Check posts set-up
The Government of
Assam set-up numbers of check posts
including ten established check posts at the inter-State border area. None of
the bcheck posts except the Composite Check Post at Damra( Sreerampur) has
proper checking yard for the purpose of
unloading of the goods vehicles, carrying unacounted and suspected goods with
adequate labour components for the purpose of checking. The check posts have not been equipped with
any ‘Way Bridge’ for weighing the vehicles,
suspected to have carried loads above the disclosed weight. The lack of proper
infrastructure has caused immense set-back towards proper functioning as well
to to achieve proper revenue yields in such revenue generating venture. The officers posted at the check posts on
many a occasion have to work under
political and administrative influence and pressure besides the threats of
anti-socials and ultras. Unless the
improved ways of functioning of the check posts are designed with requisite infrastructure,the odds will
continue sine-die.
The collection of
revenue in the ten check posts were Rs. 118.17 crore in 2013-14 and Rs. 59.70
crore in 2014-15. The shortfall, as learnt, has been due the restriction
imposed on the movement of coal. Out of the non-coal moving check posts, the
Boxirhat check post topped the list of collection with tax collection of Rs.
2.55 cr. and Rs. 2.42cr. in 2013-14 and 2014-15 cr. respectively. There is immense scope to increase
revenue at the Khanapara check post at
Jorabat, but for the presentgeographical
location, absence of requisite man power and lack of proper infrastructures,
acute set-back persists towards its proper functioning.
Ways of evasion of
taxes
A section of the tax
dodgers generally maintains the moto-‘ Necessity is the mother of
invention’. They work out the new art of evasion of taxes, when one is
foiled or frustrated. The ways of evasion of taxes are of manifolds- (a) import
of unaccounted and mis-classified goods, (b) import of goods in fake names with
false addresses, (c) suppression of goods in the challan manifests, (d) import
of goods by declaring under weights, (e) import of goods declaring under
valuation, (f) import of goods in the name the traders of other
neighbouring States, but consuming in
Assam by adopting the fraudulent means, (g) fake deals in the name of export and
import of goods to and from Bhutan (h) misuse of the concept of sales made
during the movement of the goods from one State to another by adopting the
concept of pre-determined sales, (i) maintenance of parellel sets of accounts
(duplicate sets), credit accounts, bunches of loose sheets, symbolic
transactions (j) maintenance of hidden accounts in the computer, (k) hoarding
of unaccounted goods in some undisclosed godown and business premises.(l)
import of goods through on line transactions direct (m) inter- State sales
designed as stock transfer by manipulation
and suppression of actual documents, (refers mainly the
garden tea and partly coal, jute,
superi, bamboo,hides and skins), (n) stock transfer of petroleum, diesel etc.
through pipe lines in a unilateral way without due adherance to the provisions
of rule 4(4) of the Central Sales Tax (Assam) Rules and the Form ‘F’
A clear concept
of law, dedication and enthusiasm to
work with the clinical visions for generation, mobilization and augmentation of
revenue obviously will provide substantial yields.
Tax on entry of
goods
A measure of tax on the entry of goods was
adopted in Assam
, namely; the Assam Entry Tax Act, 2001 (Entry Act) from 01.10. 2001 for the
purpose of levy of tax on the goods imported (a) from places out side the State
of Assam to a local area of Assam
or (b) from one local area of Assam to another local area of Assam for
consumption, use or sale in Assam.
No tax liability to pay entry tax
accrues on the goods, imported from
places out side the State of Assam, if such goods are (a) sold in Assam and
makes payment of VAT to the satisafaction of the taxing authority, (b) sold in
the course of inter-State trades or commerce ,(c) moved to places out side the
State of Assam on stock transfer , (d) sold in the course of export out of the
territory of India.
Following the restriction imposed in Article 286(1)(b) of
the Constitution of India that no tax is to be levied by the States on the
sales or purchases of goods taking place in the course of import of any goods
from out side the territory
of India, the tax on such
import under Entry Act was exempted.
Suddenly, on 18-12-2014, the Legislature
of the State of Assam introduced a measure of tax under the said Act in respect
of entry of crude oil, imported from the places out side the territory of India
to the State of Assam. It could learnt that such a measure of taxes was
adopted, on the pretext that, the entry tax measure is related to the entry of the goods and not
on the sales or purchases of the goods, so imported. This seems to be
controversial. The measure of entry tax in such case ought have been taken
earlier and the goods other than crude
oil ought to have been brought under purview of the entry tax-net.
The revenue derived out of the entry tax, are as
below;
Year
Tax
2011-12 Rs. 512.75 crore
2012-13 Rs. 364.14 ,,
2013-14 Rs. 404.69 ,,
2014-15 Rs. 382.44 ,,
The collection of tax
seems to have a downward trend. A good
number of industrial and construction projects have been undertaken in Assam and many of them are in the process
for which the import of machinery, materials etc. are being made regularly for
use or consumption. The quantum of entry tax, therefore, ought to have been in
a higher side. It requires examination whether a portion of such goods are
being shown imported in the name of the neighbouring States, but delivered and
consumed in Assam by diverting the course of trade by way of manipulation of
papers and documents.
Tax on Specified
Lands
A mesure of tax
on the tea gardens lands and coal mining lands by enactment of the Assam Tax (on Specified Lands)Act was
introduced on 01.01.1990. The taxes on coal mining lands was, however,
withdrawn from 01.02.1994. Again, a
measure of tax on coal mining lands, lime stone mining lands, crude oil
mining lands and natural gas bearing lands
were introduced 29.12.2004 with a retrospective effect from 01.01.2004.
The collection of tax was, as below :
Year Tax
2003-04 Rs.
56.94 crore
2004-05 Rs. 45.29 ,,
2006-07 Rs. 53.18 ,,
2009-10 Rs. 78.87 ,,
2012-13 Rs. 99.72 ,,
2013-14 Rs. 103.43 ,,
2014-15 Rs. 101.66,,
The Economic and
Statistic Department of the Government of Assam recently published a booklet on
the Economic Survey of Assam,2014-15, based on the survey made in various
fields of activities for the year 2013.
An analysis on the
Survey Report
It was disclosed in
economic survey report that –
A. (i) the total numbers of tea garden in Assam were
69,220 Nos (big and small). [It also
could be learnt from other sources that there are about 750 nos industry-based
tea gardens in Assam,
which were included above.]
(ii)Total area of tea
garden lands is– 3, 22, 000 Hector
(iii)Total production
of tea is– 62, 90, 50,000 Kilogram (Kg )
The yields of tea (black tea) was from the industrial processing activities of the green tea leaves produced. The ratio of production of black tea leaves from green tea leaves is 4.5 Kg : 1 Kg. The production of green tea leaves in the tea garden lands can, therefore, be calculated out of blkack tea as- 62,90,50,000 Kg X 4.5 Kg = 283,07,25,000 Kg.. The tax on the tea garden lands is calculated on the annual production of the green tea leaves produced. The rate of tax on green tea leaves producedced varies from 0 .25 paise to 0.32 paise per Kg. Even if the minimum rate of tax is calculated @ 0.27 paise per Kg, the amount of tax comes upto Rs. 76,42,95,750.00.
B. The booklet further projected the production and use of the lands
of following categories :
(a) coal mining lands : Coal extracted
- 6,65,000 Metric tons
(b) lime stone mining lands: Lime stoneextracted- 2,08,000 ,,
,,
(c) crude oil mining lands: Crude oil extracted- 47,18,000 ,,
,,
(d) Natural gas bearing lands: Gas
used- 26, 55 ,00 ,000
Cubic meter
The figures, published
by the Economic and Statistics department, Government of Assam on the basis of
economic survey must have some rigid base and these are clear and
authentic.
The rate of tax on
coal mine lands is Rs. 50.00 on the extraction of per metric ton of coal, on
lime stone lands is Rs. 10.00 on the extraction of per metric ton of lime
stone, on crude oil lands is Rs. 200.00 on the basis of extraction of per
metric ton of crude oil, while on natural gas bearing lands is Rs. 100.00 on
the use of per thousand cubic meter.
C. The
tax liabilities, therefore, come up, as below :-
(i) Coal
(6,65,000 X Rs. 50.00 = Rs. 3, 32,50,000.00
(ii) Lime Stone
(2,08,000X Rs. 10.00 = Rs. 20,80,000.00
(iii) Crude Oil
(47,18,000 X Rs. 200.OO =
Rs. 94,36,00,000.00
(iv) Natural Gas
(26,55,00,000 X Rs. 100.00) =
Rs. 2, 65,50,000.00
1000 Rs.100,54,80,000.00
The tax element, as
already worked out in respect tea leaves oif thergarden lands was
Rs. 76,42, 95,
750.00. If the above amount of tax Rs.
100,54,80,000.00 is
added to the same, the
total amount of tax comes to Rs. 176,97,75,750.00 (say; Rs. 176. 98).
The collection of tax on the specified lands, as per tax department record for
the year 2014-15 was shown at Rs. 101.66. So, in consideration of both the
Government records, a conclusion can be drawn up that there was an under
payment of tax Rs. 176.98- Rs. 101.66 = Rs. 75.32 crore only.
Shortfalls
existed
The Specified Lands
Act suffers from various lacunae. First, there is no provision of survey,
inspection of accounts in the field. Second, no provisions for search of the premises, yards and
godowns, seizure of the books of accounts and goods is existent. Third, the
assessees (specified land owners) were given the liberty to pay tax
uniliterally out of their own without any inspection or checking. Fourth, in
the production of green tea leaves and use thereof in the industry along and
the out turn derived can not be verified in a methodical way. Fifth, sometimes
disparity or discrepancy, may exist between the figures of production of green
tea leaves and that of manufactured black tea, but the same can not be verified
and ascertained . Sixth the returns submitted before the State taxing authority
are never verfied with the statements/returns submitted to the central excise
authority to make counter check and to ascertain the accuracy.
Forthese shortfalls,
therefore, under payment of tax.
Conflicts over
taxability on sales of green tea leaves
Green tea is an
exempted goods under the sales tax laws of Assam since 1947. No tax was
leviable at any time on the sale or purchase of such goods. Even entry 41 of
the First Schedule of the VAT Act makes it clear. Strangely enough, a provision has been inserted in the
Specified Lands Act from 12-02-2009, which reads, as below :
“ Section
6A-Deduction of tax at source- Every person engaged in manufacture of tea and
responsible for making any payment or discharging any liability on account of
any amount purported to be the full or
part payment of sale price or consideration of purchase of green tea
shall at the time of credit to the account of
or payment to the seller of such amount
in cash, by cheque, by adjustment or in any manner, what soever deduct tax caculated at the rate of 25 paise per
kilogram and deposit the same in the State exchequer in such manner, as may
be precribed.”
A strong clash ,therefore, exists between the
provisions of sales tax law (VAT) and the specified land law, which are being
administered under the same roof of the tax administration in Assam. The said measure, as we believe, was inserted in the
Specified Lands Act probably with a view to ensure proper payment of tax by the
small tea gardens owners, but it can not ignore or supersede the restrictions
imposed in the principal Act, governing the sales and purchases of the goods to
the effect that no tax is leviable on the sales or purchases of the green tea
leaves. The power to deduct and deposit such tax has been vested to some non-
Government organizations [private tea industries] for which the accuracy of the
production, sales made by the small tea gardens and deduction of tax at source
remain controversial.
Tax on luxury
A measure of tax was
introduced on the luxury provided in the hotels and lodging houses, carrying on
the business on commercial basis, by way of enactment of the Assam Taxation (on Luxuries Hotels & Lodging
Houses) Act, 1989 since 01.04.1989. The luxury included accommodation,
amenities,facilities and the services provided therein. The owners of the
hotels and lodging houses are to be made liable to pay tax under the said
Luxury Tax Act on the turnover receipts of a hotelier.
The private hospitals,
which provide accommodation , amenities, facilities and services on commercial
basis were also brought under the puview this tax –net with effect from 29.08.
2009 and has been liable to pay tax on the the turnover in respect of such
luxuries received.
The
taxes collected under this law are :
Year Collection
2007-08 Rs. 3.11
Crore
2008-09 Rs. 5.75 ,,
2009-10 Rs. 5.17 ,,
2010-11 Rs. 5.42 ,,
2011-12
Rs.
7.48 ,,
2013-14 Rs. 8.67 ,,
2014-15 Rs. 10.55 ,,
In superseesion of the earlier rates of tax,
the following rates of taxes were introduced in respect of the hoteliers with
effect from 29.08.2009 :
(i) Where the charge of luxury in a
hotel
is less than Rs. 300.00per day per room
..
Nil
(ii) More than Rs.
300.00 and not more than
Rs.1000.00 …5% of the turnover
(iii) More than Rs.
1000.00 and not more than
Rs. 2000.00 .. 8%
,,
(iv) More than Rs.
2000.00 ..12% ,,
With the introduction
of tax on private hospitals in the luxury tax scenario with effect from
29.08.2009, the rates of tax were designed, as below:
(i) Where the charges of luxury
provided
In a hospital is less than Rs.1000.00
In a hospital is less than Rs.1000.00
per day per room Nil
(ii) More than
Rs.1000.00, but less than
Rs. 2500.00
.. 5% of the turnover
(iii) More than Rs.
2500.00 ..
8% ,,
The collection of tax,
though is in a higher side, seems to be not very much encouraging particularly
after the private hospitals were brought under the purview of this tax net. One
reason of such shortfall might be that, the rate of tax on the hoteliers, as
earlier prevailed, were reduced from 10%, 15% and 20% to 5%, 8% and 12%
respectively, which might have caused lower yield of such tax revenue. The new
measure of tax on private hospitals could not adequately compensate the loss.
The rate of luxury tax
in respect of the hoteliers were further modified with effect from 12.05.2015
by reducing the margin of tax exemption quantum from Rs. 1000.00 to Rs. 2000.00
with the rates of tax from above Rs. 2000.00 to Rs.5000.00 a@ 10% and above Rs.
5000.00 @ 14%. We are to see the future
impact of revenue on account of such modification.
A part from Guahati city, where there are
numbers of star hotels, standard
luxurious hotels with unique and adequate facilities of modern era, in other
district, subdivisional and commercial towns also, many standard and
sophisticated hotels, lodging houses, resorts and inn are operating. In
National Parks and Game sancuaries, numbers of such hotels, lodging houses are
there. The marriage celebrating houses were also brought under the purview of
this Act.The accommodation, amenities, facilities and services charges in the
modern and sophisticated hotels and private hospitals are very high.
From some data available, is found that the
numbers of tourist Indian and Foreign) in the five National Parks with revenue
collections were, as below :
Year NationalPark Indian tourists Foreign tourist Revenue
(lakhs)
2012-1300 Kaziranga 93,
747 7418 Rs. 205.76
2013-14 ,, 119,
289 6922 Rs.
268.66
2012-13 Manas 15,890 218 Rs.
25.48
2013-14 ,, 20,527 211 Rs. 30.93
2012-13 Rajib Gandhi Orang 1,847 70 Rs. 2.76
2013-14 ,, 2,329 16 Rs. 2.43
2012-13 Dibru-Saikhowa 2,656 19 Rs. 1.08
2013-14 ,, 4,230 54 Rs. 2.09
2012-13 Nameri 4,370 528 Rs. 4.54
2013-14 ,, 5,866 806 Rs.11.56
This is a simple
instance. It can be well imagined what will be numbers of borders and quantum
of collection in the hotels, lodging houses, inns, resorts and private
hospitals etc.
The luxury Act provided
that inspection, search and siezure of the place business of such assessee are
to be carried on by virtue of the provisions of the VAT Act. The Luxury Act and
rules have not incorporated any independent provision thereon. It is not known,
if such exercise of bpowers in respect of the assessees are being carried on.
What we believe is that, a preventive way of action will make
rise to the collection of tax revenue under this law.
Conclusion
Augmention
of revenue to a higher quantum is possible, if there is proper mobilization of
resources, utilization of man power and plugging of the legal lacunae. At
present, man power in the taxation department is quite adequate., but it is not
known how their services are being utilized. In the past, each of the taxing
officers were on the heels to ensure proper and ascending revenue collection in their respective areas.
They were answerable for any shortfall or lapses, whatsoever. The maintenance
of survey register, inspection of places of business of the assessee including transport
establishments, places of entertainmentsis the primary duty of the tax officers
and it was imperative to maintain such
records and registers, submit the periodic diaries, statements of performances including inspection,
detection of evasion of taxes, tax involvement
with realisation thereof, disposal of assessment cases, collection of
revenue with arrear taxes, which were being reviewed by the superior
authorities at frequent intervals by way
of inspection to assess their
performances individually. The maintenace Index Register, Assessment,
Demand and collection (including arrear collection)Register, Detection and
Prosecution Registers, Field Survey, Field inspection Register is a must The
periodic marathan inspection offices from the rank of the Deputy Commissioner
of Taxes (previously the Assistant Commissioners of Taxes) to the top was a
regular feature. It is not known, if such traditions and culture are still being maintained.
(Mrinal
Kanti Chakrabartty)
“Rudra
Bhawan”
R.G. Barua Road, Lakhimipath,
Guwahati
-781024 (Assam)
(M)
98642-01694
