Has corporate income tax become a breeze under Modi? Time to comply almost halved in just 1 year : 04-05-2018
In just one year, the time to comply with corporate income tax almost halved after a number of reforms such as Income Computation and Disclosure Standards (ICDS) were introduced by the Narendra Modi government, a joint report by the World Bank and PwC said.
The time to comply with the corporate income tax has reduced from 45 hours in 2015 to 25 hours per annum in 2016 on the back of ICDS, which helped standardise the computation of taxable income and other tax accounting standards, the report said.
In India, the most common feature of reforms in the area of paying taxes over the past year was the implementation or enhancement of electronic filing and payment systems, the report which studied tax regimes in 190 countries said.
It further noted that data gathering has become increasingly automated due to the use of modern enterprise resource planning (ERP) software. India’s number of payments fell also from 27 to 13 and electronic payments of state insurance contributions and social security contributions were introduced in 2015.
The Narendra Modi government has vowed for a complete overhaul of the more-than-50-year-old Income Tax Law to make the payment of tax easier, simpler and transparent. The government formed a task force of tax experts to study and suggest changes in the law.
The PwC- World Bank report does not talk about any data on the newly-adopted Goods and Services Tax (GST), but it does note that the GST subsumed a very complex indirect tax structure. “One of the biggest challenges for the introduction of GST was to achieve consensus between the Centre and States,” the report said.
The report said that while the GST is facing teething troubles, it has taken India closer to ‘one nation and one market’ and its benefits can be reaped in the long run.
Source : PTI