The Enforcement Directorate (ED), set up under the Foreign Exchange Management Act, 1999, is reportedly stymied and frustrated by another instrumentality of the central government, the Central Board of Direct Taxes (CBDT), set up under the Income-tax Act, 1961, in its successful prosecution of Indians who have reportedly stashed away money with LGT bank in Liechtenstein, and whose names were revealed to India a couple of years ago by the German government, under the Double Taxation Avoidance Agreement (DTAA) between the two countries. In a country, which is admittedly a union of states with a federal bias, centre-state discords aren't uncommon, so much so the GST (Goods and Services Tax) to be taken up across the nation is still hanging fire, despite several rounds of discussions, with several sticky points remaining to be sorted out, that would convince the states that neither its revenue nor its power is being compromised. But this time around, it is the laughable right arm-left arm syndrome that is once again in full play.
Source: The Hindu Business line
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