EASE OF DOING BUSINESS
Starting a business is much easier than doing business in the current commercial environment. Please change the slogan from "Ease of starting business" to "Ease of doing business".
Below said is from actual experience
Wish to cite a case briefly , a sales tax case , in which assessment was conducted for 5years at a particular rate of tax , in the sixth year an officer disputes this rate and suggests a much higher rate and taxes for the past 5 years are recovered with interest and penalty. Is this fair/just. Many had to close their businesses due to this ruling. So much for so called “Ease of doing business”.
This proves that the department herself does not know the Act. Is it just to penalize the public under the circumstances? The department in the above case is not held responsible for assessing incorrectly for 5 years.
It would be fair to both the department and the public, only if the first time an error/mistake/fault is come to light the department should issue a guidance notice to the concerned party and if the act/law/rules is flouted the second time then the punishment should be given. Also this system will encourage the department to reach out quickly to the assesses/entities covered by respective departments, and make the first time corrective guidance if required and compliance is ensured and create honest law abiders rather than unknowingly flouters of the law.
Each type/category of industry, trade and business activity has developed over many decades, and we should appreciate that it has evolved and so are the rules and system of working in that business. But our administrative system makes a set of laws which is supposed to be applicable to all business that has evolved over decades with its own rules. Is this fair or is it possible? And in trying to adapt most people land up on the wrong side of these laws. This is because the makers do not have any experience in running a business and more so in that particular trade/business. The present law makers are not affected by these and so their concerns are also with little depth. Then these laws are exploited by the administration for personal gains. This is evident in the news on a hourly basis. The laws should be made and passed by a majority in business and not from the administration . This argument is deflated by the politicians and the administration by creating committees with outside participation and then they say that the laws were sent for wider circulation and comments from the general public , but this is only drama, the laws are finally made by the administration and passed by politicians who play the game in groups/parties. Thus law making becomes a joke.
The higher courts comes to decisions/judgements on issues from the lower court after many years, if in favour of the departments then the department enforces the higher court judgement from the date the issue was filed for the first time in the lower courts, in other words retrospectively. The higher court could add a line that this judgement is applicable from the date of issuance, because only higher courts verdict is final. more
Below said is from actual experience
Wish to cite a case briefly , a sales tax case , in which assessment was conducted for 5years at a particular rate of tax , in the sixth year an officer disputes this rate and suggests a much higher rate and taxes for the past 5 years are recovered with interest and penalty. Is this fair/just. Many had to close their businesses due to this ruling. So much for so called “Ease of doing business”.
This proves that the department herself does not know the Act. Is it just to penalize the public under the circumstances? The department in the above case is not held responsible for assessing incorrectly for 5 years.
It would be fair to both the department and the public, only if the first time an error/mistake/fault is come to light the department should issue a guidance notice to the concerned party and if the act/law/rules is flouted the second time then the punishment should be given. Also this system will encourage the department to reach out quickly to the assesses/entities covered by respective departments, and make the first time corrective guidance if required and compliance is ensured and create honest law abiders rather than unknowingly flouters of the law.
Each type/category of industry, trade and business activity has developed over many decades, and we should appreciate that it has evolved and so are the rules and system of working in that business. But our administrative system makes a set of laws which is supposed to be applicable to all business that has evolved over decades with its own rules. Is this fair or is it possible? And in trying to adapt most people land up on the wrong side of these laws. This is because the makers do not have any experience in running a business and more so in that particular trade/business. The present law makers are not affected by these and so their concerns are also with little depth. Then these laws are exploited by the administration for personal gains. This is evident in the news on a hourly basis. The laws should be made and passed by a majority in business and not from the administration . This argument is deflated by the politicians and the administration by creating committees with outside participation and then they say that the laws were sent for wider circulation and comments from the general public , but this is only drama, the laws are finally made by the administration and passed by politicians who play the game in groups/parties. Thus law making becomes a joke.
The higher courts comes to decisions/judgements on issues from the lower court after many years, if in favour of the departments then the department enforces the higher court judgement from the date the issue was filed for the first time in the lower courts, in other words retrospectively. The higher court could add a line that this judgement is applicable from the date of issuance, because only higher courts verdict is final. more
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Sajjan Paul has raised the issue of discrimination by the official of Sales Tax department. Perhaps an expert has not been used by Sajjan Paul to assess the tax liability and payment thereof. He might have gone ahead with the suggestions of Sales Tax official and paid the taxes without knowing the associated rules. According the government rule liability of a company does not end for certain period and that is how the entrepreneurs get trapped with no responsibility on the officials. more
Feb 21
Scams of sorts are the best examples of 'Ease of Doing the Business in India', and also the start up business. At the back of these practical theories is the understanding that whatever the development we see in India is because of the capital available in black - without accountability and transparency. And, this is the only truth of capitalist economy. more
Feb 20
Ease of Doing Business and Making Business Ease POLICY DILUTED SYSTEMS, CONTROLS FROM 90s itself whereby Internal Controls ; Statutory Audits ; Practices of Registrar of Companies ; WERE DIVERSIFIED AND DILUTED in support of Corruption in Politically Ruled Governance . There is absolute need to Reform many issues at National interest and Public Welfare . more
Feb 20
In a company where I m a Director, VAT was claimed by wrong interpretation as red chilly powder is exempt from VAT . Commercial taxes demanded Rs, 8`crores as VAT with interest. THEY FINALLY SETTLED FOR Rs 4crores as bribe to the Minister Concerned Such is the level of corruption in Tamil Nadu which is the worst State in Ease of doing Business more
Feb 18
Create some problem and harass and get corrupt money is the standard practice of this dept. more
Feb 17
Completely right. State governments and municipal corporations are the biggest enemies of honest businessmen. more
Feb 17
