Finance Minister P Chidambaram has swung into action to realise a tidy sum of Rs 18,000 crore (Rs 180 billion) from undisputed direct and indirect tax arrears. He is putting in place a battery of tax officials with a mandate to go after companies with big arrears. 
 
A multi-pronged approach is likely to be finalised at the two-day annual meeting of chief commissioners and directors-general of the Central Board of Direct Taxes and Central Board of Excise and Customs, to be inaugurated by Chidambaram on Monday. 
 
According to revenue department officials, the CBEC has proposed to Chidambaram a 100-man team, headed by a director-general, to oversee the project. 
 
AK Raha, director-general (systems), is likely to head the project. The CBDT, too, was likely to put in place a dedicated team to focus on collecting of arrears, they told Business Standard. 
 
Total tax arrears on April 1, 2004, were estimated to be Rs 1,03,000 crore (Rs 1,030 billion), with direct tax arrears accounting for Rs 87,800 crore (Rs 878 billion). Indirect tax arrears were Rs 15,200 crore (Rs 152 billion). 
 
Chidambaram is hopeful of realising Rs 15,000 crore (Rs 150 billion) from undisputed direct tax arrears and another Rs 3,000 crore (Rs 30 billion) from indirect tax. 
 
The officials said the revenue department would not shy away from tough measures to realise arrears. 
 
A proposal to make public the names of the major tax defaulters and to post a list on the ministry's website was being considered, they said. Making public the names of companies and individuals with outstanding demands could act as a deterrent and press them pay up, they added. 
 
The proposal to set up a National Tax Tribunal to bring all tax disputes pending in various high courts under a specialised court to expedite their disposal may also be revived. The tribunal proposal was mooted at the last meeting of chief commissioners, the officials said. 
 
The department may also waive the interest charged under Section 234 B&C and Section 220 (2) of the Income Tax Act as an incentive to companies to pay their dues. 
 
In direct taxes, Chidambaram will primarily target undisputed arrears from companies under the Board for Industrial and Financial Reconstruction [Rs 4,600 crore (Rs 46 billion)], those pending with the Settlement Commission [Rs 2,700 crore (Rs 27 billion)] and arrears stuck because of stays granted by assessing officers and tribunals [Rs 12,000 crore (Rs 120 billion)].