Abstain questioning CXOs at late hours, taking tax payments during search ops: SOPs for tax officials in the works

The draft proposal is being worked upon after taking feedback from industry and department officials.

The Central Board of Indirect Tax and Customs is likely to release a circular on the guidelines to be followed by Directorate General of Goods and Services Tax Intelligence (DGGI) officials during a tax probe. It is expected to direct the officials to abstain from questioning CXOs at late hours and taking tax payments during a search operation, according to a report by The Economic Times.

The move comes after many multinational companies approached the finance ministry about the investigation process, especially questioning of CXOs, the report added.

Moneycontrol couldn’t independently verify the report.

“There is a case for revisiting the instructions on DGGI investigation and questioning for ease of doing business,” according to a senior government official cited in ET. As per the official, the draft proposal is being worked upon based on feedback from industry and department officials.

A senior executive of a company, who was questioned recently has also been cited in this ET report, stating, "In cases where there is a question of interpretation, you cannot treat management like criminals. While the top officials are sensitive, the field officers sometimes are rude." The executive also said he was questioned till late at night and was later called again the next morning.

The official cited earlier said such incidents are an exception and that the Centre is working on the feedback.

"If a company is cooperating in the investigation, there is no need to summon CXO," the official has noted. He added that late-night questioning should be avoided.

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