"The Commission held its first meeting and will submit its first report within six months and thereafter submit periodic reports after every three months," TARC Chairman and Advisor to Finance Minister Parthasarathi Shome told reporters.
The terms of reference of the Commission include a review of the existing mechanism of dispute resolution and methods to widen tax base, said the media report. The TARC will also recommend measures to strengthen inter-agency information sharing between Central Board of Direct Taxes (CBDT), Central Borad of Excise and Custom (CBEC), Financial Intelligence Unit (FIU), Enforcement Directorate, and also with the banking and financial sector.
Besides, it will recommend a system to enforce better tax mechanism -- by size, segment and nature of taxes and taxpayers that should cover methods to encourage voluntary tax compliance.
The statement said the Commission will be supported by a Secretariat and have its headquarters at Delhi. It will be provided information and quantitative data of CBDT and CBEC to do statistical analysis for making recommendations.
The term of the 7-member TARC is 18 months and it will work as an advisory body to the Ministry of Finance.
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