Indirect tax officials’ appraisal to consider arrears recovery

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The indirect tax department has made ‘recovery of arrears’ a parameter in the annual performance appraisal for tax officials, in a bid to incentivise effort to bring down recoverable arrears that currently stands at over Rs 26,000 crore. Against a target of Rs 10,000 crore for the current fiscal, the tax arrears recovery (TAR) vertical of the department has managed to achieve only Rs 3,500 crore in the April-December period.

“Any shortage in your recovery target of arrears will be taken seriously and may reflect in your APAR as per new guideline for arrears assessment,” Pranab K Das, chairman of the Central Board of Indirect Taxes said in his communication with department officials. He further said achieving the target for the year would need extraordinary effort by field formations, especially as the target for current fiscal is substantially more than previous two fiscals it was set at Rs 6,000 crore for FY18 and Rs 5,000 crore for FY17.

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