A rupee collected by indirect tax officers has as much worth in the nation’s well-being as a rupee collected by direct tax officers.
A few members of the Indian Revenue Service (Income Tax) Association had written to the ministry of finance, the Union Public Service Commission (UPSC) and the Central Board of Direct Taxes (CBDT) stating their discontent with the use of a common name for the two Indian Revenue Services in official matters.
The two services being the Indian Revenue Services-Income Tax (IRS-IT) and the Indian Revenue Services-Customs and Indirect Taxes (IRS-CIT). Both have been commonly referred to as the IRS.
ThePrint, then, published an article on this ‘battle of supremacy’ in the IRS.
Also read: We are the real IRS, don’t call us ‘I-T’, say India’s taxmen
A statement from the IRS-IT Association in the article claimed that the IRS-IT was the “real IRS”. This raised many eyebrows. In fact, the general secretary of the IRS-IT Association has gone to the extent of saying, “We are a much bigger service with a much bigger clientele… writing ‘I-T’ in front of our service only dilutes the weight of the service. IRS is a known brand name associated with income tax”.
Such a statement tends to mark one service as superior at the other’s expense and, therefore, is highly objectionable.
It is pertinent to mention that tax collection in India is composed of both direct as well as indirect taxes. Direct taxation is looked after by the IRS-IT, whereas, indirect taxation is looked after by the IRS-CIT.
The tax collection trend shows that both direct and indirect taxes have had an equally significant role in contributing to nation’s tax kitty; albeit their respective contributions have evolved with the changing structure of the economy.
| FY | Share of direct taxes in total tax collection | Share of indirect taxes in total tax collection |
| 2000-01 | 36.3% | 63.7% |
| 2007-08 | 53.0% | 47.0% |
| 2016-17 | 49.50% | 50.4% |
Data for FY 2000-01 and 2007-08 has been obtained from http://www.mospi.gov.in/statistical-year-book-india/2017/175
Data for FY 2016-17 has been obtained from a press release of Ministry of Finance dated 4 April 2017
Given the above data, how can one revenue service be more “real” than the other? Both the services collect revenue and hence both are worthy of being named the Indian Revenue Services. After all, a rupee collected by indirect tax officers is as much worthy of contributing to the nation’s well-being as a rupee collected by direct tax officers.
Also read: Behave properly with taxpayers: Income tax department tells its officers
The general secretary of the IRS-IT Association has pointed out the lone incident of the transfer of customs officials from Mumbai as an alibi and mentioned that such incidents dilute the IRS brand name. To quote an isolated event without context, and that too when the relevant proceedings haven’t attained finality, is highly irresponsible. Moreover, is the other IRS-IT saintly? The recent incidents like the arrest of an income tax commissioner in Guwahati for bribery don’t suggest so.
However, the intention is not to point fingers. Both the services, whether the IRS-IT or the IRS-CIT, have had many bold and honest officers and such incidents dilute not just the IRS brand name, but the brand name of India.
People also often miss the role played by the IRS-CIT outside the routine domain of tax collection, which is not performed by the IRS-IT.
First, the IRS-CIT was pivotal in launching the Goods and Services Tax (GST). By virtue of their knowledge and experience in erstwhile Central Excise and Service Tax regime, they drafted the new GST law, which in turn was replicated at the level of states.
The implementation of the GST is a commendable example of cooperative federalism. IRS-CIT officers had an immense contribution in the same by ensuring its smooth implementation. Central and state government officials are working together on a pan India scale in the sensitive domain of tax collection for the first time.
Second, the scope of the IRS-CIT in terms of functions is far wider than the IRS-IT. The Customs wing of the IRS-CIT thwarts revenue leakage from the country by curbing illegal trade and preventing smuggling of precious, semi-precious metals, counterfeit currency and antiques. The Central Bureau of Narcotics which is manned by IRS-CIT officers is involved in the licit cultivation of narcotics drugs used for medicinal purposes and checking the illicit supply of narcotics drugs, thus strengthening the nation’s security.
Also read: Become a black money informant, take home up to Rs 5 crore, says Income Tax department
It would not be an exaggeration to say that officers from the IRS-CIT in coordination with several other agencies like the BSF, the NIA, and the ED guard the economic frontiers of the nation. Moreover, the IRS-CIT has played an important role in conserving the environment by curbing illegal poaching of wildlife on sensitive borders.
It is surprising that people from the IRS-IT, on the other hand, have authored such a divisive letter. People from the IRS-CIT, however, believe in contributing in a united fashion. The GST has ushered in large scale formalisation of the economy, which in turn has augmented the income tax payer base. Rising fiscal deficit of the country demands both the services to work in unison rather than bickering that one is more “real” than the other.
The brand attached to a name is built by contribution, not nomenclature. In no way has one service contributed less than the other. Hence, logic demands that in accordance with their respective constitutional mandate both services be named as IRS-IT and IRS-CIT.
Kanika Dua, IRS (Customs and Indirect Taxes) and currently serving as an Assistant Commissioner in New Delhi. Views in this article are personal and does not represent view of the authorities.
Conferred IRS system should be abolished since most of the conferred officials are not sincere to their Department.
Excellent article Kanika…Unfortunately Bureaucracy in India hasn’t evolved over time..They r still living in the colonial legacy in which they were started for a different purpose of they vs ‘us’…All the services have a false sense of superiority over the other depending on UPSC rank..No exam in the world has such long lasting impact as civil services where they decide everything for next 35 years..Lateral entry in future in a big way will Square this colonial mindset..Also its for this reason that bureaucracy is perceived as anti progress n development by people of country at large.
IRS INDIRECT TAX HAS NO ROLE AS REVENUE OFFICERS. THEY ARE ONLY SUPERVISORY OFFICERS . THEY ALMOST HAVE NIL CONTRIBUTION IN REVENUE COLLECTION AND ASSESSMENT OF REVENUE RETURNS. MOST OF THEM ARE MERELY BURDEN ON GOVERNMENT . IN MY VIEW DIRECT RECRUITMENT OF THIS CADRE SHOULD BE STOPPED AND TOP POSITIONS IN THE BOARD SHOULD BE OCCIPIED BY IAS.
After all what is there in a name? Do your work and get recognition. We don’t care whether you are IAS, IRS or anything else. This I think would be a commenter’s view.
Read commoner’s view
For common Indians, both r corrupt (very few exceptions).
A stupid and senseless fight. I hope the US govt does not sue you for using the IRS tag and bringing it a bad name too.
By the same senseless argument I don’t hope that tomorrow the IRS from the US govt don’t fight in the International Court of Justice that you have appropriated their Name and not to stop with that the corrupt in IT have brought a ‘bad name’ to them.
Dear brother Kanika Dua,
till the year 2006 IRS (C&CE) was called as IC&CES. Then IRS from Income Tax Department was IRS only and not IRS-IT. When ICCES was changed to IRS(C&CE) there was no change in IRS and the IRS before 2006 continues to be IRS even thereafter. IRS was never changed to IRS-IT due to change in ICCES. Our objection is we were never IRS-IT and therefore we should not be called as IRS-IT. Moreover, our Recruitment Rules do not address as IRS-IT. You may be IC&CES or IRS(C&CE) or IRS(GST) or IRS(CT) and no one knows what it is going to be but we are IRS only but not IRS-IT.
Dear Sister ‘IRS’, Please show proof for your random claims. UPSC has called both the services as IRS with suffix.
And IT got the tag later not earlier.
It is pretty childish on part of Income Tax to fight for the tag of ‘IRS’ when both the services are infact IRS as per UPSC which is the sole authority in this regard.
This article is a repsonse to the same.
In facts IRS – CIT became IRS before income tax , in the 80s.
Some people need to get a life and move onto serious things !!
Till 1980s,IRS referred to only customs,and direct tax called as Indian income tax service, please go through the records.you can adopt your old name..
Very aptly explained Kanika ji. It will be better if two services are renamed as IRS(IT) for indirect tax and IRS(DT) for direct tax.
Please know the facts during 1980s,IRS referred to customs only,and income tax is Indian income tax service only so you can reclaim your original service name.
What is there in name, Well sometime its pride. IAS says we are the boss, IPS says due to us. Now IT says IRS belongs to us.Well all are laughable. On serious note, in service of nation, nothing matters then why are IT puts such claim.
Sorry to say that IRS in US stands for something else and comments above are without any susbtance. Similarly IRS (CCE) full fledged rules are there – leagally it belongs to both the services.
Gets the facts right or else Sita will be kidnapped by Ravana.. :)0
Plus, go through the Service Rules of both the services, where the name of the service is defined. Then the controversy on the name will end there and then itself.
Thand rakho. We know aapka kaam kya hota hai. Desk job business analyst bhi kar lete hain. IT deptt ko privatise karo ya outsource karo. Revenue khud aa jayega.
Kanika, your comment basically tried to catch a straw in changing times. Most countries use the name revenue for the income tax department. Customs are often part of border management. Indirect taxes, being consumption tax, is only a small portion for the centre in the new GST scheme. There are court decisions to support the view and contention of the IRS Association. So, it is but in order that the tag of IRS be not used by the indirect tax people, in line with the international practice.
International practice and Indian practical situations are different. You can not compare oranges with apples.
I don’t get why IRS Income tax people started the real nomenclature fight in the first place. As a commoner, I need tax department to focus more on making services more accessible to public rather than fighting a futile war.
Please read the data given and then say whether indirect taxes are more or direct taxes are more…it’s so blatant and baseless that even after reading you are saying indirect taxes constitute small portion…
International practice is different in every country. In some country like US customs doesnot perform the same activity as v do. As the writer had rightly pointed out that the real and effective economic frontier profile is carried out by us. Secondly in the revenue side for our centre its GST and customs together.Infact in our federal structure where centre is supposed to give compensation cess to states cos of GST for next five years is also us. So indirect tax collection is not lesser count as what has been written. Thanks…..
I think previously till recently income tax deptt was referred as IRS and customs and central excise as ICCE. Hence nomenclature IRS is always tagged with Income tax. Linking Percentage of revenue collection with IRS claim has no relevance as it was ICCE even when the share of revenues was much much larger.
One of senior IRS officer I interacted with informed me that Till 1985 income tax service was called as Indian income tax service and IRS customs and excise was called as Indian revenue service …
In 1985, Indirect taxes and customs was the only service to be called IRS and other direct taxation half was called Income Tax Service(something like that as far as I remember). Then somehow it got changed and indirect tax officers began to be called ICCE. Again in recent times, indirect tax officers began to be called IRS (Customs & Central Excise). So history is harsh & fair for both the sides. Also given the diversity of work done by IRS(Customs & Indirect Tax)
i.e. IRS (CIT) according to CBIC after their name change with the responsibility of GST in the country, as in Airports, Ports, land borders, DRI, DGGSTI, Narcotics, SEZ, commerce, trade, Environment, economic affairs leading to country’s external affairs; I think they well deserved to be called IRS to say a least.
Talking about brand value! What do they market?