NEW DELHI (TIP): The Union Cabinet approved the proposal for setting up of the Tax Administration Reform Commission (TARC). Finance Minister P. Chidambaram in his Budget Speech 2013-14 had announced a proposal to set up the Commission. The Commission will consist of a Chairman, two fulltime members and four part-time members, of which at least will be from the private sector. The Chairman will be an eminent person having wide experience of tax administration and policy making.
The two full-time members will be with a background in revenue service pertaining to Income Tax and Central Excise and Customs respectively. The term of the Commission will be 18 months. The Commission will review the application of tax policies and tax laws in India in the context of global best practices and recommend measures to strengthen the capacity of the tax system in India that would reflect best global practices. The Commission will help in removing ambiguity in application of tax policy and tax laws, thereby establishing a stable tax regime and a non-adversarial tax administration.
The Commission will facilitate an efficient tax administrative system that would enhance the tax base as well as tax payer base. The Union Cabinet also approved a proposal for exemption of prior approval of Cabinet for disposal/auction of immovable properties acquired by the Union Government under the provisions of Chapter XX-C of the Income Tax Act 1961.