Corporate tax arrears at over Rs 3.11 trillion as of Dec 2014

Tax arrears from corporate houses stood at over Rs 3.11 lakh crore (Rs 3.11 trillion) till December 2014, Parliament was informed on Friday.

While, demands from indirect sources were as much as Rs 1.54 lakh crore (Rs 1.54 trillion).

"The total demand pending for collection under the head Corporate Tax under direct taxes up to the month of December, 2014 was Rs 3,11,080 crore (Rs 3110.80 billion).

"However, the total tax arrears in respect of indirect taxes as on January 31, 2015 was Rs 1,54,702.36 crore," Minister of State for Finance Jayant Sinha said in a written reply in Lok Sabha today.

In reply to actions taken against cases of tax evasion, he said field formations of the Central Board of Excise & Customs and Central Board of Direct Taxes take all preventive steps.

These measures include conducting extensive surveys for identification of potential tax evaders, gathering information from various sources, regular scrutiny, audit, joining global efforts to combat cross-border tax evasion and tax fraud and to promote international tax compliance, he added.

In reply to a separate question in the House, the minister said new tax accounting standards for computing income tax will be unveiled from April 1, 2015.

"The Income Computation and Disclosure Standards are likely to be implemented with effect from the 1st day of April 2015, and shall accordingly apply to the assessment year 2016-17 and subsequent assessment years."

The new tax accounting standards is related to income computation and disclosures by businesses to ensure consistency as well as clarity on taxation issue.