Tax board asks GST probe wing to follow bottom-up approach, not summon CEOs/CFOs at first instance
The Central Board of Indirect Tax and Customs (CBIC) has directed officials in the Directorate General of Goods and Services Tax Intelligence (DGGI) to follow a “bottom-up” approach while investigating tax liability of multinational companies (MNCs). In the guidelines issued recently, the indirect-tax board instructed officials at field formations to first question the “authorised person” in an MNC, responsible for ensuring tax compliance, instead of directly summoning the company’s chief executive officer (CEO), chief financial officer (CFO) or directors at the first instance.
“Several MNCs had approached the finance ministry earlier, and had mentioned the issues the top management face in the hands of DGG officials…the new guidelines are expected to address such concerns,” a senior official said, on condition of anonymity.
