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I request you not to evade taxes yourself and not to help your clients evade tax: Piyush Goyal to CAs

Power Minister Piyush Goyal struck a right note for the times when he asked the Chartered Accountants to actively participate in the successful implementation of the Goods and Services Tax (GST) ensuring that their clients do not overcharge customers and made a request to them not to evade tax nor help their clients evade tax.

He was speaking to members of the Bombay Chartered Accountants’ Society that was celebrating its 69th foundation day. He gave a soft warning against tax evasion, suggesting that they should not evade tax and nor should help their clients evade tax as many of them were seen helping their clients launder undisclosed cash after the announcement of the demonetization.

“It is incumbent on traders, businessmen, manufacturers, every component of the value chain to ensure that the correct pricing is carried forward and the input credit is given correctly. We (CAs) as a community have to ensure that the customers are not jilted and the correct pricing is right sized at the input level,” Goyal, a CA himself by qualification, said.

Referring to GST as the “biggest transformation that our nation has seen in our 70 years of independence”, he said that it was redeeming for the CA community that it was introduced on July 1, which is also celebrated as the ‘
CA Day’.

“International experience shows that inflation tends to show its ugly head in the first couple of quarters after the GST implementation. When it comes to inflation, we all can play a role. It is incumbent on traders, businessmen, manufacturers - every component of the value chain - to ensure that the correct pricing is carried forward and the input credit is given correctly,” Goyal said.

India introduced GST from July 1, replacing multiple state and central taxes with this simplified tax. The new tax aims to reduce the prices of goods as it removes double taxation and allows seamless tax credit on inputs.

“I request you not to evade taxes yourself and not to help your clients evade tax. Every time you do that, remember you are depriving someone poor and needy of that resource,” the minister warned CAs.

Taking a jibe at chartered accountants who are increasing their fees for GST-related services, he said: “CAs have started jacking up their fees, I thought it will be the other way. But I think it will be important that we advise our clients to give the correct input as the goods and services move from one part of the value chain to another. Otherwise what we are trying to save the system from — harassment and tax terrorism —will once again show its ugly head. ”

 


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