Monday, December 31, 2007
Powerful tool.....
I have got a response to my RTI application.... I now know the amount that the State Government spent to run the assembly sessions. My application has been forwarded to other departments for the balance information (ie cost of the swearing in ceremony, setting up new offices, etc)........ I now believe filing applications under the RTI Act is a powerful tool..... We should start using it to make our netas and babus more accountable!!
Friday, November 30, 2007
One done... one to go!
As discussed in my below blog, i had decided to file applications under the RTI requesting for information on amount spent by the State Government. I have already filed 2 applications under the RTI and i am currently working on the PIL!!
Wednesday, November 21, 2007
New CM to Former CM in a week......
Just when it was time for the media to transition from calling Yeddyurappa a "new CM" to calling him a "CM"... he has become the "former CM". I was driving in front of Vidhana Soudha about an hour after the swearing in ceremony last week and I happened to take a few pictures to show what a mess the road was.... but by the time I could post this blog... the whole state appears to be in a mess!!!
All this is due to one person... Deve Gowda. I am really curious to know the expenditure incurred on having a swearing in ceremony, running the government for 7 days, changing all office name board, etc. All these expenses have been incurred only because of Deve Gowda. All these expenses have been incurred with our money (ie tax payers money). Had he (ie JDS) not changed his stand, Yeddy would not have been sworn in nor would he have resigned. 
It is criminal to make the State incur expenses of this magnitude for ones personal whims and fancies especially when the roads, infrastructure is in such pathetic state.
I am seriously exploring options to get the above expense details using the RTI and thereafter explore the option of filing a PIL requiring the government to recover these expenses from Deve Gowda. Anybody willing to support me in this cause is welcome.
Sunday, November 11, 2007
Dilemma in case of road accidents……
I have always been in a dilemma - whether or not to get down and help - when I have witnessed a road accident. On a few occasions I have got down to help and see if the person involved in accident is an acquaintance.
Early this morning, I was driving back home after filling fuel for my car. I was driving down the Tyagarajanagar police station road. Suddenly an ASI of police (traffic) drove out of the police station in his white bullet and another guy was approaching the police station on his pulsar from the opposite direction and he was driving quite fast.
Within seconds, the ASI and the guy on pulsar collided right in front of the police station and I braked suddenly. Luckily, I was atleast 10 feel away from where they collided. The ASI fell on the ground and the guy on pulsar managed to regain his balance and drove past me in the same speed. I saw the ASI on the ground and his walkie-talkie was thrown off and landed right in front of my car. I got down, picked up the walkie-talkie and helped the ASI stand on his feet.
The first few words from the cop shocked me beyond belief. I had expected a thank you or silence at the most! To my surprise, the ASI started shouting at me and asked why I was driving so fast and why I was careless!!! Just then 3-4 other policemen and policewomen (there is a women’s police station next door) came out and all of them thought I had hit the ASI!!
Thankfully, two elderly gentlemen who were walking by informed that I had not hit the ASI and that it was another guy on another bike. It was only after that, one of the other cops took his bike and started chasing the biker who had actually hit the ASI.
I have been wondering ever since as to whether I did the right thing in getting down! But for the two elderly gentlemen, I could have been in serious mess. If this could happen to me when I got down helping a policeman, I just can’t imagine what my fate would have been had I got down to help any other motorist who was knocked down on the road!! This incident will surely make me think twice before I get off to help an accident victim the next time…..
Early this morning, I was driving back home after filling fuel for my car. I was driving down the Tyagarajanagar police station road. Suddenly an ASI of police (traffic) drove out of the police station in his white bullet and another guy was approaching the police station on his pulsar from the opposite direction and he was driving quite fast.
Within seconds, the ASI and the guy on pulsar collided right in front of the police station and I braked suddenly. Luckily, I was atleast 10 feel away from where they collided. The ASI fell on the ground and the guy on pulsar managed to regain his balance and drove past me in the same speed. I saw the ASI on the ground and his walkie-talkie was thrown off and landed right in front of my car. I got down, picked up the walkie-talkie and helped the ASI stand on his feet.
The first few words from the cop shocked me beyond belief. I had expected a thank you or silence at the most! To my surprise, the ASI started shouting at me and asked why I was driving so fast and why I was careless!!! Just then 3-4 other policemen and policewomen (there is a women’s police station next door) came out and all of them thought I had hit the ASI!!
Thankfully, two elderly gentlemen who were walking by informed that I had not hit the ASI and that it was another guy on another bike. It was only after that, one of the other cops took his bike and started chasing the biker who had actually hit the ASI.
I have been wondering ever since as to whether I did the right thing in getting down! But for the two elderly gentlemen, I could have been in serious mess. If this could happen to me when I got down helping a policeman, I just can’t imagine what my fate would have been had I got down to help any other motorist who was knocked down on the road!! This incident will surely make me think twice before I get off to help an accident victim the next time…..
Thursday, November 8, 2007
Kudos to PC and his entire team!!!!
I am recovering from a fortnight of very hectic work of preparation and filing of the return of income for various corporate tax payers. It also included one 36 hour marathon effort!! But one thing I told myself at the end of the filing season on October 31 (after filing more than 2 dozen returns) was “Well done and thank you Mr FM and your team!”
Mr P Chidambaram and his entire team deserve a pat on their back for the e-filing process! One will understand and appreciate the achievement only if he goes through the e-filing format (ITR – 6) prescribed. After handling more than 2 dozen returns, I dint come across any single logical error or mistake worht menting in the entire format. The efforts in drafting the FAQs provided in connection with the e-filing process are also commendable.
Collating various forms, obtaining various signatures, making photo-copies of all annexures are now a thing of the past. While I was doing my articles, the toughest part was collating the documents for the return, filling the return, making copies and filing. The worst part was for our office support staff to stand in a serpentine queue to file the return before 6 pm on the last day! Today, none of those are needed!
Under the new scheme, a return can literally be filed anytime – anywhere! We had cases where the person signing the return was not even in the same city and the returns were digitally signed and uploaded!!
The website (http://www.incometaxindiaefiling.gov.in/) allows every tax payer to have a log-in, upload retruns, view the status of his earlier years return. Add to this the fact that the entire software was provided free of cost. Mr PC, the entire income tax department and the CBDT deserves a huge applause for this!! This in my opinion is an achievement which every Indian needs to be proud of!
Mr P Chidambaram and his entire team deserve a pat on their back for the e-filing process! One will understand and appreciate the achievement only if he goes through the e-filing format (ITR – 6) prescribed. After handling more than 2 dozen returns, I dint come across any single logical error or mistake worht menting in the entire format. The efforts in drafting the FAQs provided in connection with the e-filing process are also commendable.
Collating various forms, obtaining various signatures, making photo-copies of all annexures are now a thing of the past. While I was doing my articles, the toughest part was collating the documents for the return, filling the return, making copies and filing. The worst part was for our office support staff to stand in a serpentine queue to file the return before 6 pm on the last day! Today, none of those are needed!
Under the new scheme, a return can literally be filed anytime – anywhere! We had cases where the person signing the return was not even in the same city and the returns were digitally signed and uploaded!!
The website (http://www.incometaxindiaefiling.gov.in/) allows every tax payer to have a log-in, upload retruns, view the status of his earlier years return. Add to this the fact that the entire software was provided free of cost. Mr PC, the entire income tax department and the CBDT deserves a huge applause for this!! This in my opinion is an achievement which every Indian needs to be proud of!
Tuesday, October 23, 2007
Wait for Budget '08
This is a follow-up to my earlier post on the taxability of Hutch-Vodafone sale. I came across this new article in the Financial Express which states that "Budget ‘08 may tax cross-border M&As" (Ref: http://www.financialexpress.com/news/Budget-08-may-tax-crossborder-MAs/229055/). According to this article, the income-tax department has decided to treat the tax notice on Vodafone-Hutch as a test case and that taxing the movement of cross-border capital will, therefore, be key to the revenue department’s exercise in the run up to the next Budget.
The Government is seeking to amend the tax laws to bring future cross-border M&A under Indian tax net, but it will be interesting to see how the Vodafone-Hutch transaction is brought under the tax net in India. Or will it be more interesting to see if the present Government will last till Budget '08??
I understand that the Bombay HC has adjourned the hearing on Vodafone writ petition to the 29th of October.
Amidst closely following developments on the above, I also happened to catch the end of one of the best Grand Prix championships. It actually was the most closely fought Grand Prix championship in the last 21 years.
The Government is seeking to amend the tax laws to bring future cross-border M&A under Indian tax net, but it will be interesting to see how the Vodafone-Hutch transaction is brought under the tax net in India. Or will it be more interesting to see if the present Government will last till Budget '08??
I understand that the Bombay HC has adjourned the hearing on Vodafone writ petition to the 29th of October.
Amidst closely following developments on the above, I also happened to catch the end of one of the best Grand Prix championships. It actually was the most closely fought Grand Prix championship in the last 21 years.
Friday, October 12, 2007
Taxing issues....
After a fortnight of uncertainty, mud slinging, et al, the state has come under President's rule. The State will now be run by the Governor. We have a lot of Chartered Accountant who run companies, we now have a Chartered Accountant who is running a state! Politicians are out and babus are in......
I have decided not to fill my blog about state politics, because by the time I type a few lines and publish it, the entire situation would have changed.
I turn my attention to another issue which has been running in my mind. It is the writ petition filed by Vodafone Essar against a show cause notice issued by the Income Tax Department in India.
For those of you who are not aware of what I am talking about, here it goes…..
Vodafone International Holdings BV, a Dutch company, acquired the entire share capital of CGP Investments from Hutchison Telecommunications International Limited (both entities registered in Cayman Island). CGP owns stakes in twelve companies including Indian and Foreign companies, which in turn hold shares in Vodafone Essar.
According to Vodafone Essar, Vodafone, CGP Investments as well as HTIL are registered and function outside India, therefore any gain on CGP investments' shares cannot be considered to have accrued in India and hence not taxable in India.
The IT Department’s contention is that the ultimate subject matter of transfer is a asset situate in India. Hence, it is an income which has its source in India and hence Hutchison is liable to pay tax in India. The IT Department has issued a notice to Vodafone Essar on August 6, asking them to show cause as to why HTIL is not liable to tax and why the same cannot be recovered from them as an agent of HTIL.
As a tax practitioner, I know the legal merits of the contention of Vodafone and HTIL. They may end up not paying any tax on the above transaction.
According to public reports, Hutch's gain before tax is likely to be nearly USD 9 billion (Ref: http://www.moneycontrol.com/india/news/business/hutch-completes-call-vodafone/280353) Even considering the current dollar rate the pre tax gain is a staggering Rs 36,000 crores!! Apply the tax rate, applicable to long term capital gains earned by non-residents (ie tax rate including surcharge and cess) the tax payable exceeds Rs 8,000 crores!!! This collection alone can replace the higher education cess introduced on all taxes!!
I just want an answer to the below question from any body other than a tax expert:
“Can a company make a profit of Rs 36,000 crores by selling a business entirely built and operated in India and not pay a single Rupee of tax to the Indian Government?”
I have decided not to fill my blog about state politics, because by the time I type a few lines and publish it, the entire situation would have changed.
I turn my attention to another issue which has been running in my mind. It is the writ petition filed by Vodafone Essar against a show cause notice issued by the Income Tax Department in India.
For those of you who are not aware of what I am talking about, here it goes…..
Vodafone International Holdings BV, a Dutch company, acquired the entire share capital of CGP Investments from Hutchison Telecommunications International Limited (both entities registered in Cayman Island). CGP owns stakes in twelve companies including Indian and Foreign companies, which in turn hold shares in Vodafone Essar.
According to Vodafone Essar, Vodafone, CGP Investments as well as HTIL are registered and function outside India, therefore any gain on CGP investments' shares cannot be considered to have accrued in India and hence not taxable in India.
The IT Department’s contention is that the ultimate subject matter of transfer is a asset situate in India. Hence, it is an income which has its source in India and hence Hutchison is liable to pay tax in India. The IT Department has issued a notice to Vodafone Essar on August 6, asking them to show cause as to why HTIL is not liable to tax and why the same cannot be recovered from them as an agent of HTIL.
As a tax practitioner, I know the legal merits of the contention of Vodafone and HTIL. They may end up not paying any tax on the above transaction.
According to public reports, Hutch's gain before tax is likely to be nearly USD 9 billion (Ref: http://www.moneycontrol.com/india/news/business/hutch-completes-call-vodafone/280353) Even considering the current dollar rate the pre tax gain is a staggering Rs 36,000 crores!! Apply the tax rate, applicable to long term capital gains earned by non-residents (ie tax rate including surcharge and cess) the tax payable exceeds Rs 8,000 crores!!! This collection alone can replace the higher education cess introduced on all taxes!!
I just want an answer to the below question from any body other than a tax expert:
“Can a company make a profit of Rs 36,000 crores by selling a business entirely built and operated in India and not pay a single Rupee of tax to the Indian Government?”
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