CBEC and CBDT Merged?
THERE was panic in the Revenue corridors - have they merged the two Super Boards? It needs a little explanation.
The Government's expenditure is voted by Parliament for various departments under ‘demands for grants'.
The Demand No. 43 is for the Department of Revenue and the expenditure takes care of Revenue Headquarters, Central Economic Intelligence Bureau, Financial Intelligence Unit (FIU-IND), Principal Chief Controller of Accounts, CBDT, Principal Chief Controller of Accounts, CBEC, Pay & Accounts Office (Revenue), Competent Authorities under Smugglers and Foreign Exchange Manipulators (Forfeiture of Property) Act and Narcotics Drugs & Psychotropic Substances Act and Committee of Management. Provision is also made for implementation of Value Added Tax (VAT) Scheme including activities to improve VAT implementation, phasing out of Central Sales Tax (CST) and setting up of Tax Information Exchange System (TINXSYS), Grant-in-Aid to the Empowered Committee (EC) of State Finance Ministers for meeting administrative/miscellaneous expenses and setting up of Income Tax Overseas Units in various countries.
Demand No. 44 is for ‘Direct Taxes'. The Demand provides for the requirement of Income-Tax Department, which administers all direct taxes levied and collected by the Central Government, namely, taxes on income (including income of the corporate sector), wealth tax, security transaction tax etc. For the purpose of collection, the country has been divided into charges. The Department has also got separate Directorates for scrutiny of cases involving large scale evasion, inspection, research, statistics and publications. The expenditure also relates to purchase of ready-built office buildings and ready built residential buildings in respect of Direct Tax organization. Expenditure voted for 2015-16 amounts to 5406 crores.
Demand No. 45 is for ‘Indirect Taxes'. Expenditure voted for 2015-16 amounts to 5664 crores. Demand for grants include expenditure for:
(i) Establishment and other expenditure of Customs, Maintenance of Anti-Smuggling Equipments, Modernization of Chemical Laboratory etc. (ii) Payment of proportionate charges to the Central Excise Department for customs work done by it at Minor Ports. (iii) Payment of commission charges to Postal Department towards the cost of collection of Customs Duty on inward foreign letters and parcels. (iv) Contribution towards Customs & Central Excise Welfare Fund and Customs Special Equipment Fund for acquisition of anti-smuggling equipments etc. (v) Establishment of Central Excise Department and its other expenditure for collection of Union Excise Duties and Service Tax. (vi) Recovery of proportionate charges from Customs Department for the Customs work performed at various Minor Ports by Central Excise Department. (vii) Maintenance and Repairs of Departmental residential accommodation.
Now the Demand Numbers 44 and 45 are merged into Demand No. 43 of Department of Revenue. That is there would be only one demand for grants for the Revenue Department and no separate grant for CBEC and CBDT. Cause enough to worry?