Abstract
A tax administration has some core functions. They include taxpayer registration, tax payments, filing tax returns for both direct and indirect taxes. They include, among others, taxpayer identification, registration and payment arrangements, audit and scrutiny and, in association, developing risk-based audit selection and protocols, training and placement of audit staff on the basis of competency and specialisation in carrying out audit and scrutiny, and combined audit of direct and indirect taxes such as income tax and GST or VAT. Core functions also include the application of tax deducted at source (TDS), carrying out refunds and foreign tax credit in a timely manner, installing self-assessment requirements and procedures thereof and using tax recovery when needed to minimise delinquency or eliminate stopfilers. What emerges is that processes can become quite complicated unless simplicity for ease of compliance and administrative convenience are preserved and nurtured as a strategy and an objective to be achieved. This chapter elaborates on those core functions of a tax administration.
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Notes
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Usually, for tax purposes, a person is defined as an individual, a joint family, a company or corporation, a partnership firm, an association of persons, a local authority or an artificial juridical person.
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There should be a mechanism to revoke TIN on the death of a TIN holder or on the closure of a business. Otherwise it can lead to a pool of infructuous TINs.
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A payment gateway is an e-commerce application for a service provider that authorises credit card payments for e-businesses, online retailers, bricks and clicks, or traditional brick and mortar. It is the equivalent of a physical point of sale terminal located in most retail outlets.
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Government of India (2020).
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See Tanzi and Pellechio (1995).
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Directive 2008/09/EC.
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DTAAs are not expected to provide rules on the computation and operation of the credit.
- 10.
See Tanzi and Pellechio (1995), op. cit., p. 12.
References
Asian Development Bank (ADB). 2018. A Comparative Analysis of Tax Administration in Asia and the Pacific. https://doi.org/10.22617/TCS189264. Accessed 8 September 2020.
Government of India. 2020. Income-Tax. The Gazette of India: Extraordinary, Notification No. 61/2020 [F.No.370149/154/2019-TPL]/SO 1746(E). https://www.incometaxindia.gov.in/communications/notification/notification_61_2020.pdf. Accessed 30 August 2020.
Tanzi, Vito, and Anthony Pellechio. 1995. The Reform of Tax Administration. IMF Working Paper No. WP/95/22. https://www.elibrary.imf.org/doc/IMF001/07242-9781451843941/07242-9781451843941/Other_formats/Source_PDF/07242-9781455256402.pdf. Accessed 8 September 2020.
Tax Administration Reform Commission (TARC). 2014. Tax Administration Reform in India: Spirit, Purpose and Empowerment (First Report). New Delhi: Government of India.
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Shome, P. (2021). Key Administration Processes. In: Taxation History, Theory, Law and Administration. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-030-68214-9_33
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