New Delhi: In order to make coordination with proposed Goods and Services Tax (GST), the government has initiated the process of making common tax code (CTC) for excise duty and service tax. The government constituted M K Gupta (retired IAS officer)-led study group for making CTC. Group has been told to submit the report by September 30 this year.

The code will be prepared on the similar lines of Direct Tax Code (DTC).

Gupta has served as Vice-Chairman of Excise Settlement Commission. In order to make the tax laws logically relevant, the government has already started the process to implement DTC.

Like the coordination among direct taxes, the government aims to make coordination between excise duty and service tax as well. Finance Minister Pranab Mukherjee while presenting Union Budget 2012-13 in the Parliament had announced to look for alternatives in making CTC in indirect taxes.

Group will also be working to simplify the current credit system related to indirect taxes. As well, it will be suggesting ways to reduce its impact on other taxes. Finance Minister Pranab Mukherjee says that efforts should be put in to bring both kinds of taxes as close as it is possible in order to streamline it with GST. To work out the alternatives for CTC in indirect taxes, group will be having discussions with different chamber of commerce and organisations.

(JPN/Bureau)