Central

Section 3 of The Central Boards of Revenue Act, 1963

3. Constitution of separate Central Boards for Direct Taxes and for 1[Indirect Taxes and Customs].--(1) The Central Government shall, in place of the Central Board of Revenue, constitute two separate Boards of Revenue to be called the Central Board of Direct Taxes and 2[the Central Board of Indirect Taxes and Customs], and each such Board shall, subject to the control of the Central Government, exercise such powers and perform such duties, as may be entrusted to that Board by the Central Government or by or under any law.

(2)Each Board shall consist of such number of persons 3[not exceeding seven] as the Central Government may think fit to appoint.

Summary

The Central Government must set up two separate tax boards in place of the old single Central Board of Revenue.
The two new boards are called the Central Board of Direct Taxes and the Central Board of Indirect Taxes and Customs.
Both boards work under the direct control of the Central Government.
Each board will perform the duties and use the powers given to it by the Central Government or by other laws.
Each of these boards can have up to seven members appointed by the Central Government.

Practical examples

1In 1985, the Central Government wants to appoint new members to the Central Board of Direct Taxes. The government appoints Mr. Shah and five other professionals to make a six-member board, which is within the legal limit of seven.

2In 2019, the Central Board of Indirect Taxes and Customs needs to enforce a new import rule. Since the board works under the control of the Central Government, it seeks government approval before issuing the rule.

FAQ

1. What are the names of the two new boards set up under this section?

They are the Central Board of Direct Taxes and the Central Board of Indirect Taxes and Customs.

2. Who controls these two separate boards?

Both boards are subject to the control of the Central Government.

3. How many members can be appointed to each board?

Each board can have any number of members as long as it does not exceed seven.

4. Who has the authority to appoint members to these boards?

The Central Government has the authority to appoint the members.

5. What duties and powers do these boards have?

They perform duties and use powers given to them by the Central Government or under any law.

Test yourself

Q1.In place of which older body does the Central Government set up the two new boards?

Q2.Which entity has control over both of the newly set up boards?

Q3.What is the maximum number of members that can be on each board?

Q4.Who appoints the members of the Central Board of Direct Taxes?

Q5.Under what authority do the boards exercise their powers and perform their duties?

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