A World of Thoughts

This article is in line with what I was writing about in the last few months.  We want the cross subsidy scrapped to make a uniform and simple tariff structure. And a market decided power price! Cross subsidy is not only a problem for the industries but also for generators. In addition it is also a grand modifier of the market and is a big problem for the Distribution Company.  In Tamil there is a proverb which likens a person who goes through pain and enjoys it to a dog that is biting a dry bone. Since the bone is so dry and her own teeth so weak, the blood oozes out from the gums in her mouth and the dog things that it is the blood from the bone! Whereas the truth is that it is her own blood! In order to save the dog from bleeding if you try to take the bone from her, it will not allow you to take it either! You cannot save the dog easily.  TANGEDCO and other Discoms in electricity business are more are less like that. They 'think' cross subsidy is good for them but in realit

  First round of relief in terms of work to be done, for small GST payers has at last, come about! After pestering with the government for over two years now, the first major reduction in documentation and filing has been effected! All those GST tax payers who are having a turnover upto Rupees Five Crores may file their returns on a quarterly basis. Filing every month three returns apart from paying tax on a monthly basis was eating out the resources of the small businesses. Now, the government has announced that those people who are making five crores or less may file on a quarterly basis. But, of course, taxes have to be paid on a monthly basis! And in order to be eligible for this scheme, they should have paid their taxes till October and filed GSTR 3B for Oct 2020 before Nov 30, 2020. This would lessen the amount of work done by the small GST payers by almost fifty percent! Thank you, Government. Better late than never!  

Not all countries are spinning down the path of recession because of Covid.  Of course, we know that China has long come out of the issue and has registered a growth in the second quarter onwards. Expected to grow at an annual growth rate of 2.1% this year, hitting a 44 year low in their growth rate! Australia registered a growth of 3.3% in the last quarter. It fell into a recession, pushed in by the Corona Virus, after nearly three decades! Found itself controlling the virus and jumping out of the recession quickly. People expect Australia to further move ahead and mark the year end with a sharp growth in its economy. World's third largest economy, read Japan, has also moved out of the recession in the last quarter of this year. Japan is leading the 'Zoom Boom' with an impressive 5.5% growth in the third quarter. Japan has just signed off world's biggest trade deal, Regional Comprehensive Economic Partnership (RCEP)! Only the previous quarter, Japan had its economy shr

 Two news items caught my eye today! On one side, the newspapers claimed that the GST collection has been going up consistently. For the second month in succession it said, the GST collections crossed 1 lakh crores of Indian Rupees! A welcome change from the dreary world of Covid. Industries seem to show a better turn and therefore, the article claimed the collection of GST has risen gradually and we are almost on par with Nov 2019! They also say that the increase in GST collections could be because of the festive season. People might have loosened their purse strings during this season to fill their homes with festive goodies. Well, that could explain this month's purchase but then it still cannot be the same as the previous year which did not see Covid! Maybe, after all, the country is turning up in the V curve! https://www.thehindu.com/business/Economy/gst-revenue-at-104-lakh-crore-in-november/article33220851.ece?homepage=true On the other side, another article also caught my ey

@Thanks, Sify A welcome measure from the Government of India!   Something that taxpayers can feel good about. Let us make a list of what are the good things that can come out of it, if this scheme is implemented in the letter and spirit of what it says.   1.       One of the dirtiest words in tax collection is Harassment of taxpayer. A tax officer meets a taxpayer and goes through the accounts submitted by him. Identifies a mistake in the calculations. Bargains for personal gains and closes the case as all clear once his requirement is met. In most cases, the ‘mistake’ is more conceptual than real. A lay man could easily misinterpret the statutes while the officer whose job is to interpret the law, does so to his advantage, leaving out the spirit of the statute!   Most of these happen only when the officer meets the taxpayer in person and finds that the person is gullible. Identifies him as a source to meet his needs. When personal meetings do not happen, the chance that an officer cou