Taxation
DETAXIFICATION
ICI'S product, Milproof VFS, was the subject of discussion in a recent case before the CEGAT, Mumbai. The product _ used as an antifungal preparation to protect fabrics and other goods from mildew _ was being classified by the company, for about a decade , as a fungicide, while the Department suddenly woke up and sought classification under `other'.

Is a flat rate the answer? The world over, serious thought is being given to a shift from a progressive to a flat-rate tax system. T. C. A. Ramanujam on the relevance of such
THE Department of Company Affairs (DCA) appears to have sent a note to the Finance Ministry suggesting major changes in the rate structure under the Finance Act. The inspiration for the suggestions emanates from the Austrian and the other fiscal systems in Europe, which are experimenting with what has been described as anonymous taxation, under which, tax is deducted at source on gross payments without trying to find out the identity of the beneficiary of these payments. This is somewhat akin to the sys tem of tax deduction at source (TDS) in India.

Remove the irritants
The Budget should issue those simple, yet much-needed, clarifications on the tax statutes, for want of which, litigations have been piling up, says V. V. Ganesan FOR want of simple clarifications from the Government, several litigations are pending before various Appellate levels. If the Government issues the required clarifications in the coming Budget, then the precious time of both assessee the Income-tax Department, spent in appeal, will be saved.

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