The Reader

From: Rebecca Andrews <rebecca.andrews88@yahoo.in>
Subject: [aurangabad_ca] Re: [jprca] Don't Call BIG-4 Hyporcites - They R Snow Whites
To: jaipurca@yahoogroups.com, "CA SUDHIR KUMAR CA SUDHIR KUMAR HALAKHANDI HALAKHANDI" <sudhir@halakhandi.com>, ICAI_CIRC_MEERUT_CA@yahoogroups.com, aaykarbhavan@yahoogroups.com, "AURANGABADYAHOO GROUP" <aurangabad_ca@yahoogroups.com>, "THANE CA GROUP" <ThaneCAs@yahoogroups.com>, ALWAR_CHARTERED_ACCOUNTANTS@yahoogroups.com
Date: Thursday, 10 December, 2009, 1:22 PM

 

Mr. Halakhandi has circulated an news-report carried in Business Standard (See Below).   I am highly amused at the comment of a seasoned person like Mr. Poddar of E & Y : "A threshold of Rs 1.5 crore will create distortions between the goods at the two sides of this level. The Rs 10 lakh cut-off is small, but if the threshold is as high as Rs 1.5 crore, it may lead to some companies underreporting their annual turnover," said Satya Poddar, partner, Ernst and Young." It has become fashionable for some to give sound-bytes and quotes even if there is hardly anything substantive to say. I feel silence is a better virtue than shooting your mouth off.   Mr. Poddar, whenever IT slabs have been raised, some assessees always remain at threshold of the exemption limit. Same has applied to Central Excise or Service Tax.   There are some IT assessees who have decided that they will definitely file returns and pay nominal tax to keep their IT file alive. Regardless of whatever is the minimum slab, their tax outgo has remained consistent : Rs. 1000/- or around every year for the last decade.   When the Excise slab was 15 lacs 20 years ago, some factories always manufactured upto 14.5 lacs. Now when it is Rs. 150 lacs, they are manufacturing upto 145 lacs. Still below the exemption limit. Just to escape from Inspector Raj.   Under-reporting for marginal taxpayers has always been a standard practice. It is a necessity for them. Govt. knows and understands it.   Infact, 80% of the total tax revenue comes from big 20% tax payers and rest of the 20% revenue from small and marginal 80% taxpayers.   It is these small taxpayers who are always tremble at the name of tax officers. Because they can not afford fat-sharks like Big-4.   Maximum tax-management  (evasion) is advised  by the biggies who are the clients of the Big-4, including those of Mr. Poddar of E&Y.   And he talks of under-reporting by small and marginal assessees !   POT CALLING THE CATTLE BLACK, Mr. Poddar. Kind regards, Rebecca Andrews --- On Wed, 9/12/09, SUDHIR HALAKHANDI <sudhir.halakhandi@ yahoo.com> wrote: From: SUDHIR HALAKHANDI <sudhir.halakhandi@ yahoo.com> Subject: [jprca] GST NEW-4Date: Wednesday, 9 December, 2009, 9:10 PM     FROM THE DESK OF CA SUDHIR HALAKHANDI   Dear Members The discussion paper on GST released by the Empowered committee of the State Finance Ministers have suggested Rs.1.50 crores threshold limit for central GST (for Goods). Even at that time Hon. Finance Minister Mr. Pranab Mukharjee was there and he has reacted on several matters including the date of implementation of GST.  Now almost one month has completed from the presentation of Discussion paper on GST news is today appeared in Financial Daily "BUSINESS STATANDARD" that centre is not agree on this 1.50 crore (taken from existing central excise threshold) and have different plans. Let us have a view of this story on "BUSINESS STATNDARD"  - CA SUDHIR HALAKHANDI GST NEW-4 Central GST threshold likely at Rs 10 lakh     Central GST threshold likely at Rs 10 lakh   Vrishti Beniwal / New Delhi December 10, 2009, 0:28 IST     Businesses with more than Rs 10 lakh turnover may end up paying the central goods and services tax (CGST), with the Centre not agreeing to states' suggestion of keeping the threshold at Rs 1.5 crore. The empowered committee of state finance ministers had suggested separate thresholds for central GST and state GST (SGST), wherein businesses below a gross annual turnover between Rs 1.5 crore and Rs 10 lakh would be subjected only to SGST, and not CGST.   The rationale behind the empowered committee's suggestion for different thresholds was to protect the "interests of small traders and small-scale industries, and to avoid dual control". The government suggested compensating small businesses with turnover below Rs 1.5 crore by simplifying and reducing their paperwork, instead of keeping them out of CGST. "It (the threshold) should be Rs 10 lakh for both Centre and states. We have suggested a simplified procedure for threshold below Rs 1.5 crore. They may not have to file returns frequently; registration process could be simplified; minimum audit could be prescribed for them based on risk parameters; and benefits under the compounding scheme could be extended," an official in the finance ministry told Business Standard. The Centre is worried that a variance in threshold limit could change the revenue neutral rate and also lead to problems in collecting inter-state GST (IGST), which would be applied on inter-state transfer of goods and services. "There is huge benefit in common threshold. It allows more effective monitoring. A threshold of Rs 1.5 crore will create distortions between the goods at the two sides of this level. The Rs 10 lakh cut-off is small, but if the threshold is as high as Rs 1.5 crore, it may lead to some companies underreporting their annual turnover," said Satya Poddar, partner, Ernst and Young.           NOTE: - IF YOU DON'T WANT THE MAIL ON GOODS AND SERVICE TAX, PLEASE SEND A BLANK MAIL- CA SUDHIR HALAKHANDI CELL- 919828067256 E-MAIL- Sudhir@halakhandi. com Visit me- www.halakhandi. com STRICTLY FOR PRIVATE CIRCULATION ONLY

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