SULKING TAXMAN REFUSES TO GO ON RAIDS
Tax official on a month-Long Strike against Outsourcing
An outsourcing contract to Infosys, India’s second-largest software company, has resulted in an unexpected reprieve for those with income to hide from the taxman.
Irked by the contract, under which Infosys is processing tax returns filed online and rattled by the prospect of more outsourcing officials of the investigation wing of the income-tax department, the arm of the tax administration that conducts raids, have refused to step out of their offices for at least a month. As a result, officials have not been able to conduct the so called search and seizure operations, officialese for raids, during this period, even though many of these were in the works.
The union representing employees and officers has adopted this unusual mode of protest and said they would refuse to budge till the Central Board of Direct Taxes, or CBDT, the apex body for tax administration, meets their demands.
Since raids require officials to leave their offices and visit the taxpayers’ premises, such plans have had to be shelved until the agitation is called off.
A senior officer said raids have had to be postponed, reducing their effectiveness. “We have not been able to conduct raids in even those cases where investigations are already on. The success of raids largely depends on the timing and this element has been badly affected by the agitation.”
CBDT Chairman S. S. N. Moorthy told ET that the board had given employees whatever they wanted.
- The Economics Times, Dated – 26.08.2010
I-T Union wants vacancies filled
“We have given them (the union) whatever they demanded, including promotions. I can’t understand why they are continuing their agitation. “He then added, “We are meeting the union representatives again this week. I hope we will be able to end the agitation then.”
The union’s main grouse is against outsourcing of work that have so far been done by employees. The work in question is a contract to Infosys to process – filed returns at the Central processing Centre, Bangalore.
Ravi Nair, Secretary of the union representing employees other than officers, railed against this. “it is not right I-T employees have been doing the processing work so far. We are not against the Central Processing Centre. But our officers and employees should be doing the work at the centre, not outsiders.”
Infosys is mostly employing college students to do the processing, Mr. nair alleged, caliming that this was resulting in mistakes. “The processing is not properly done. Over 80% of the work they had done had to be redone by our own employees. Therefore what’s the benefit the department derives from outsourcing?”
Giving an example of errors committed at the Central Procesing Centre, he said, the Chief commissioner, income-tax, Bangalore, ML Agarwal, who was to be refunded Rs.60,000, was instead served a demand notice for the same amount.
Mr. Agarwal was more forgiving “Such mistakes can happen when large number of retunes are processed.”
An spokeswoman for Infosys said she would not be able to comment. Only the tax department could respond on the quality of Infy’s work and the merits of outsourcing.
Another major demand of the Unions is to fill up vacancies. A union official said there are about 27,000 vacancies.
- The Economics Times, Dated – 26.08.2010
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