Clearance Certificates

A person goes to India by land, sea or air shall obtain a certificate from the competent authority that has no direct obligations under the tax laws or has made satisfactory arrangements to pay its existing liabilities, as well as for paying poor that may become payable by him. Persons who require income tax for expenses arc those:

(I) based in India, provided that they remained in India during the period of 120 days. Generally, a person who holds a foreign passport is considered as not based in India;

(Ii) based in India at the time of departure, but-

(A) intends to leave India as an emigrant, or

(B) intends to leave India on work permits for employment or working abroad, or

(C) with respect to taxes on income from which the Authority considers it necessary cleaning.

Case 1 is intended to facilitate the collection of taxes from foreigners in respect of income which may have made during their stay in India. Case 2 is also to ensure that residents do not leave India without discharging their tax obligations. However, during the time machine for the issuance of such a degenerated, often leading to complaints of harassment and unethical behavior. In fact, international travel tips guide foreign tourists on a budget for a certain amount to obtain such approval. It is indeed a factor inhibiting foreign tourists visit India and stay for a long time. We also learned from the section officers and staff in the Department that have yet come across any case where such clearance is facilitated by a tax refund.

India has a network of agreements on avoidance of double taxation. These contracts do not provide any bilateral arrangement for assistance in the recovery of tax by one country against citizens of other countries. It is now learned that OF.CD the proposed inclusion of such arrangements in all contracts and therefore India will have to renegotiate for that purpose.

Group on Tax Policy and Tax Administration, established by the Planning Commission under Chairman Dr. Parthasarathi Shomi has recommended that the application for the license tax by foreign tourists should be withheld immediately. The working group also discussed the issue and endorsed the views of the Group.

It is therefore recommended that this request is to obtain a tax clearance certificate before leaving the country must be abolished. However, in order to protect the interest of revenue, we continue to allow tax authorities to inform the immigration / custom authorities to prevent any particular person to leave the country if such a person is considered a perpetrator is found. As a result, only a handful of persons reported to be subjected to tax in the process of cleaning compared to the current practice of requiring all and sundry in accordance with the requirement to obtain a tax checks before leaving the country.

Request for tax verification is required to estimate the officer has jurisdiction over his case in a specific format. This format makes the state tax liability by the person concerned. Upon receipt of Form, Assessment Officer verifies the writings of the facts stated therein. He considered the position regarding payment of taxes, assessed cooperation in completing the assessment and whether the penalty or criminal prosecution. After that, Assessment Officer on the application form a certificate of tax records checks.

The certificate is valid for one year. Application for fresh certificate can be made one month before the date on which the validity of the previous certificate due to expire. These companies that have a reputation for clean tax records of the Government information exempted from production to get a certificate of tax checks. Such an exemption certificate issued by the commissioner's proposal.