Archive for the ‘on-line’ Category

GST – Implementation from July 1, 2017 – How to tackle the reality of situation with the dealers with limited facilities?

June 11, 2017

GST – Implementation from July 1, 2017 – How to tackle the reality of situation with the dealers with limited facilities?

GST - Ideal, but what is implemented

The Government may have to be soft with the dealers, as they are bound to commit mistakes and violate provisions of GST Act and Rules[1]: In the implementation of GST covering crores of dealers of various transactions, many assumptions and presumptions have been made, as if, all would be sitting at computers and handling with their commercial dealings only on-line always. The Government has not perhaps, realized the digital gap existing between the big and small taxpayers under the GST regime.

  1. The powerful federal indirect tax body, the Goods and Services Tax (GST) Council, would instruct field officers at the central and state levels to be lenient with traders for procedural lapses in the first year of implementation of the new indirect tax regime from 1 July, 2017[2].
  2. There is a confusion about the jurisdiction of the dealers and as well as the law-implementing officers. This confusion prevails between the Central and the State and also amomh themselves internally.
  3. In the first year they have to handhold them rather than penalize them for procedural infractions. Everyone in the council is sensitive about it. Major offences such as clearing of goods without invoices, however, is a different matter.
  4. The decision comes in the wake of apprehensions of the trade and business community about an anti-profiteering provision in the GST law intended to be a deterrent against not passing on the benefits of any reduced indirect tax liability to the ultimate consumer.
  5. The Confederation of All India Traders, a traders’ body with 60 million members, said in a representation to PM on 8 June, 2017 that a period of nine months beginning 1 July should be declared a transition period [up to 31-03-2018] during which traders will be given immunity from prosecution for procedural lapses.
  6. While businesses and large traders will be prepared for the GST roll-out with their IT systems, small traders, especially those in villages and remote areas, may take time to become part of the GST network on account of lack of awareness and infrastructure constraints.
  7. As everyone imagines, the internet connection and related issues are going to create many practical probles, coupled with frequent power cuts at rural and village areas.
  8. Another official in the government, who also spoke on condition of anonymity, said that the last point of sale—trader to consumer—in villages has always been the weakest link in the state-level value-added tax system.
  9. Important issues – addressing concerns relating to tax rates brought up by the industry and finalizing how the anti-profiteering mechanism, “advance ruling” and search and arrests, etc. Advance ruling is a facility available for taxpayers to get an idea of what the tax liability on certain transactions will be in advance.

GST - SSI has to file 37 instead of 13 returns

SSI has to file 37 returns instead of 13; if they have units in more than one state, the returns increase accordingly[3]: A small­scale manufacturing company with operations in only one state will have to file a minimum of 37 returns instead of the current 13 once the goods and services tax (GST) goes live from July 1, 2017 increasing work for industry, accountants and banks, according to an IndiaSpend analysis. With the deadline for the GST less than a month away, finance professionals, banks and industry seem unprepared for the challenges of implementing the one nation­one tax idea, work towards which began 13 years ago. “The entire ecosystem needs to be changed to accept GST,” K. Raghu, former president, Institute of Chartered Accountants of India, told IndiaSpend. “An ideal date for implementation would be September 1.” The Indian Banks Association has informed a parliamentary panel that their members were unprepared to implement the new indirect tax regime. “Everything will now be online and will need to be updated regularly. A business will have to file 37 returns in a year (three returns per month and one annual return) per state,” the Economic Times reported on June 5, 2017.

GSTN - portal in demand

Business in three states means, he has to file 3 x 37 = 111 returns per annum[4]: “If it does business from offices in more than one state, the number of returns will go up accordingly. A business with offices in three states will have to file 111 tax returns in a year.” With the government announcing GST for four tax rates ­­ 5, 12, 18 and 28 per cent ­­ industry will face implementation challenges that include system upgrades, manpower training and understanding new taxes. Every transaction ­­ sale or purchase ­­ will now have to be recorded online to benefit from the tax paid earlier India is implementing a dual GST with the Centre and states together levying it on a common tax base. “The GST to be levied by the centre on intra­state supply of goods and/or services would be called the Central GST (CGST) and that to be levied by the states would be called the State GST (SGST),” according to the FAQs published by the Central Board of Excise and Customs (CBEC), the central body of indirect taxes. “Similarly, Integrated GST (IGST) will be levied and administered by centre on every inter­state supply of goods and services.” A dual GST adheres to the constitutional requirement of fiscal federalism, since both the Centre and states have the powers to levy and collect taxes. “The central GST and the state GST would be levied simultaneously on every transaction of supply of goods and services except the exempted goods and services, goods which are outside the purview of GST and the transactions which are below the prescribed threshold limits,” the CBEC FAQ noted.

GST opposed or supported

Meghalaya, Punjab, Tamil Nadu, Kerala, Karnataka, Jammu and Kashmir and West Bengal – have not passed GST[5]: While 24 states have passed state GST acts, seven have not ­ as yet. They are: Meghalaya, Punjab, Tamil Nadu, Kerala, Karnataka, Jammu and Kashmir and West Bengal. While the location of the supplier and the customer within the country is immaterial for the purpose of CGST, SGST would be charged only when the supplier and the customer are within the state. An illustration from the FAQ published by the government: Suppose the CGST rate is 10 per cent and the SGST is 10 per cent. When a wholesale steel dealer in Uttar Pradesh supplies bars and rods to a construction company within the state for, say, Rs 100, the dealer would charge CGST of Rs 10 and SGST of Rs 10, in addition to the basic price of the goods. The wholesaler would be required to deposit the CGST into a central government account and the SGST into the account of the state government. “Of course, he need not actually pay Rs 20 (Rs 10 + Rs 10) in cash, as he would be entitled to set­off this liability against CGST or SGST paid on his purchases (say, inputs),” said the FAQ This is where implementation challenges arise, as former ICWAI president Raghu explained. Every invoice from buyers and sellers must be entered in the GST system correctly to ensure that benefits accrue down the chain. “We have a system today across a majority of small units where an accountant comes (in) once a month, makes vouchers and inputs details for taxes,” said Raghu. “That will have to end now because we are moving to an online, almost real­time system that will need a lot of manpower.” The finance industry is ready by training its professionals, said Raghu, who predicted many job opportunities over the next 5­6 years. But, as he added, it would take at least 12 to 18 months for the system to “settle down”. “I do see a lot of CAs and other finance professionals being trained for indirect taxes in the coming years,” he said.

GST - Ideal, but what is implemented-NDA-UPA

Industry and Banks are not ready for GST implementation[6]: India’s industry and its banking system will have to change systems, train personnel and accept the extra workload for the new taxation system. The banking system has clearly said it is not yet ready. Industry is ambivalent. “Nearly 50 per cent of Indian businesses are not aware of the changes that GST will usher in,” Bharat Goenka, Managing Director, Tally Solutions, was quoted as saying in the Economic Times on June 5. Tally accounting software is widely used by Indian companies. The company is waiting for the GST rules to be finalised, so that it can roll out its GST software for Indian companies. A senior official of Federation of the Indian Chambers of Commerce and Industry (FICCI), requesting anonymity because the launch date was close, said GST was “now a fact”, and industry was trying to adapt. FICCI has been conducting awareness sessions among industry verticals to help understand the new structure, he added The industrial sector, especially the services sector, is waiting for more clarity on tax rates, processes and the time frame for the systems to settle down. “What we still don’t know is which tax slab we fall in,” a marine service provider operating in Goa told IndiaSpend, on condition of anonymity. “While it is good that the taxation system will be streamlined and we will not have to deal with multiple tax payments like excise, service tax and value added tax, we still don’t know how much time it will take for everybody to be on board.” (In arrangement with IndiaSpend.org, a data­driven, non­profit, public interest journalism platform. The views expressed are those of IndiaSpend. Feedback at respond@indiaspend.org).

© Vedaprakash

11-06-2017

GST ready for launch - 03_08_2016_001_060

[1] Livemint.com, Govt may be lenient with traders on procedural lapses in GST’s first year, Last Modified: Sat, Jun 10 2017. 12 51 AM IST.

[2] http://www.livemint.com/Politics/PMFLgTOxEezhEPIt9FEqgL/Govt-may-be-lenient-with-traders-on-procedural-lapses-in-GST.html

[3] http://www.hindustantimes.com/business-news/businessman-or-professional-you-may-need-to-fill-37-forms-to-be-gst-compliant/story-DI8IOTQi5qS0c20PkDoTNO.html

[4] http://navbharattimes.indiatimes.com/business/business-news/37-returns-instead-of-13-one-of-the-many-challenges-threatening-gst-rollout/articleshow/59085127.cms

[5] http://economictimes.indiatimes.com/news/economy/policy/37-returns-instead-of-13-one-of-the-many-challenges-threatening-gst-rollout/articleshow/59082648.cms

[6] Economics Times, 37 returns instead of 13: One of the many challenges threatening GST rollout, BY IANS | JUN 10, 2017, 02.33 PM IST.

 

Marring Metallica, diehard fans, poor Indians, running riot and fooling India!

October 30, 2011

Marring Metallica, diehard fans, poor Indians, running riot and fooling India!

 

Government money spent for the bash? The Headlines-today reporter was describing that the event was great to have very huge crowd, as if she does not see huge gatherings of public in India. Lakhs / millions of Indians used to gather without any secuirity, arrangement etc., during periodical / seasonal festivals, Gumbha-melas etc., but the gathered crown would be disciplined. However, here the elite, educated and westernized people come, and it is surprising that three-layered barricades are required for them!  The Police Commissioner was so enthusiastic, as he has provided strong barricade to stop the crowd if they try to run riot. Why should government should for some 10,000 to 15,000 rich people to enjoy their own of choice of music, which may not be liked by cbillions of Indians. Then how they could spend the exchequer money for this type of “tamasha”. The foreign media[1] has started spreading stories that the Indian fans rum amuck, damaged stage, and so on.

 

Money is not an issue / problem for Metallica diehard fans[2]: And for these fans money is the last thing on their minds. “I’ll be spending something more than `15,000 for the concert and flight tickets. The only monetary saving grace is that I’ll be staying at a friend’s place in Bangalore.” Adds Craig Quadros, 23, accounts manager, “I’ve already spent around six grand on two concert tickets, and with travelling and lodging, it will easily be around `20,000. But, it’s Metallica – a band that I’ve been a fan of since I was 12, so it’s all cool.”  For some, a few thousands don’t matter. “This will be larger-than-life so I have no qualms spending some money to watch them play,” says 39-year-old Vikram Varma, who is shelling out `50,000-60,000 for tickets, lodging, flight tickets and bus tickets. “It isn’t everyday that Metallica comes to India, so when they do, you should definitely catch them in action.” And while some are spending hard cash, there are some who are trying to make big bucks from the Metallica frenzy that has gripped fans.

 

Tickets sold in black: Either the so-called fans must have been very rich or they get money just like tha to spend. Why then they blame Indians for being poor? Tickets for the Gurgaon concert on October 28 are being sold in black for a whopping `8000, though they’re still available on the ticketing website. Says 23-year-old Anup Jain, “A friend got in touch with me asking if I wanted to buy a ticket for `8000 in black since they were sold-out. I heard the amount and I ran! Thankfully, I found out that they’re still available online.” That means, there has been another type of gambling going on.

The organizers arrested for breach of trust and cheating: The national capital has missed its date with Metallica, as the organisers finally announced that the Thrash Metal band’s concert that was postponed for a day would not happen at all. This led to the arrest of four officials of DNA Networks on charges of cheating[3].

  1. Rajesh – general manager of DNA Networks,
  2. Umesh
  3. Ashok Singh
  4. Savio Faleio

Rajesh, was arrested along with team members —Umesh, Ashok Singh and Savio Faleio. The four were presented at the district court, which remanded them in custody for five days[4]. The administration has also seized the Rs 1 crore security money deposited by the firm[5]. “We will interrogate them on what led to the cancellation of the show. We were not informed before the cancellation of the show and we received complaints from the people about it,” SS Deswal, commissioner of police-Gurgaon, said. The four officials have been arrested under section 406 (breach of trust) and 420 (cheating) of the Indian Penal Code.

Without permission tickets sold, crowd gathered: There was still confusion regarding the return of money to the people and fans will have to wait for the advertisement to know the procedure. “I want my full money back. When the Bryan Adams show was cancelled in February, the organizers had deducted Rs 200 as service tax. Why should we pay anything as service tax when no show happened?” said exasperated Rajesh who had bought a ticket for Rs 1,650. Metallica on its official website mentioned the reason of cancellation of the concert as fans’ security. “Immediately at the end of our afternoon press conference, we were notified that there was a serious question as to whether the show could proceed with regard to the safety of the concert audience. And our first and foremost concern is always for the safety of you, the fans,” read the statement on Metallica’s website. The band will perform in Bangalore on Sunday.

The decent rogues run riot: It wasn’t quite “Kill ‘Em All,” but when Metallica and a concert promoter postponed the metal band’s first concert ever in India, angry fans reacted with a “Seek and Destroy” mentality. They rioted, trashed instruments even tore apart parts of the stage, according to The Huffington Post. The promoter, DNA Entertainment Network, reportedly announced right before the gig was supposed to start at Leisure Valley Park in the city of Guragon that they would have to postpone it for a day due to a problem with security measures at the venue. But some 25,000 fans had already pushed their way into the concert, and their angry reaction delivered the kind of carnage that one might expect from a crowd that loves bludgeoning music with punishing volume levels and lyrics about rage. Fans set banners on fire and trashed instruments on the stage, according to HuffPo. Videos like the one below have already surfaced online showing fans swarming the stage and throwing items into the crowd and at security members. But Hold your horses Napster-lovers, this can’t all be blamed on Lars Ulrich. NDTV reports that four people, including a senior executive from DNA Entertainment Network, have been arrested in the wake of the debacle and charged with cheating ticket buyers and a breach of trust. Authorities allege that the promoters sold tickets far beyond capacity and did not inform authorities of the cancellation.

The way the decent diehard fans behaved: The so-called elite, educated and sophisticated crowd behaved like rogues or uncilized, barbarics. They very often criticize Indians for one or the other reason. Now what they say about their conduct? “As soon as the organisers announced that the show has been postponed, the crowd went berserk… people started pushing each other, broke barricades, started shouting and throwing water bottles,” Pankaj Kaushik, who waited for three hours for the show to begin, said. The venue was vandalised by upset fans, some of whom even ran around the ground shirt-less as a mark of rebellion. They threw bottles at the security personnel, who formed a human chain on the stage. Technical equipment was destroyed as angry fans threw chairs at the LED wall. “People have come from across various countries – Malaysia, China, Nepal, Indonesia, Singapore… but everybody is feeling robbed,” said Anurag Sharma, another disappointed fan.

Permission to conduct not obtained, but tickets started selling!: A permit to hold the concert on Saturday (30-10-2011) could not be obtained on short notice, and the show was subsequently canceled. That means, the organizers had taken the authorities for granted or they might tried to bribe them with huge money. Promoters said they would refund all ticketholders. So much for “…And Justice For All.” In a statement posted to the band’s website, Metallica wrote:

Once we, along with DNA, the promoters of the show, determined that there was a failure of a security barricade in front of the stage that could not be adequately repaired, the promoter reluctantly announced the postponement of the show until Saturday. Unfortunately, on such short notice the promoters were unable to secure a permit for a show on Saturday…We are deeply disappointed with this news as we were looking forward to our first experience in India as much as you guys were.”

Note, for him, he is not bothered about permission etc., but tickets were already sold, and they are sold on-line with “black-marketing” loaded. However, he accuses that the “barricade” was not repaired! Why he could not secure the permit on 29-10-2011, when the tickets were already stared selling?  Not exactly the best way to “Fade to Black.” Couldn’t somebody have just appealed to the “Master of Puppets”? Hopefully Metallica’s new nickname in India won’t be “The Unforgiven.” Ok, we’ll stop now, we promise. Sorry. We couldn’t resist.

Metallica gig mismanaged from the word go[6]: Now, comes the real story. It exposes the arrogance of the “Metallica” group also as they behaved like the cpolonial rulers.  Unfortunately, our “young idiots” do not understand and tell the facts.  After the Metallica gig in Gurgaon was cancelled on Friday evening, the reason cited by the organizers and the management of the band was a broken front barricade. But according to the people at the venue, the real reason was gross mismanagement and neglect on part of the organizers right from the beginning. Arjun Paruthi had reached Leisure Valley Park by 2pm. “The ticket said the opening acts were supposed to begin by 4pm. I didn’t want to miss out on anything.” But by the time the gates opened, it was already 3, and people swarmed the streets by thousands. “There was already chaos at the gates, and then people just rushed inside. The venue was quite full by 3.30pm,” he said. Arjun took his place right at the front like hundreds of others, leaning against the barricades. And then one of the barricades, which was particularly fragile, gave in. Vivek Seigell, who was in the audience with his 14-year-old daughter, recalled that as he took his place, not far from the stage, the venue was already packed beyond its capacity. “At the security gates, there were no checks. Nobody was checking the tickets. Many entered the venue without any ticket,” he said. Vivek added that nobody checked the bags at the gates, too, and many even sneaked in alcohol bottles. The crowd soon swelled so much that any movement within the venue became impossible. “So it is only understandable that one of the barricades gave in as the pressure from behind was immense,” he said. The crowd, he added, was already restless because of the delay. Soon, it was announced that the show would begin, followed almost immediately by another announcement that the team was trying to fix a “technical snag”. “The iron barricade had broken early on and for two hours, they tried to fix it by tying rods and poles,” said Karthik, who had entered the venue at 3.30pm. Around this time, crew members and organizers tried to push back the people near the broken barricade[7].

‘Move back you buttheads! Move back’,” – Oh Indians could you understand what it is? Oh clashing, arguing, rioting Indians move back, that is how the man shouted at the Indians. “This is the time when a crew member of Metallica, dressed in a grey T-shirt, says ‘Move back you buttheads! Move back’,” Rahul Sarin, a blogger who attended the concert, mentioned in his blog.  Around 6.15, the crew members of Metallica started dismantling their equipment set-up on the stage, seeing which the crowd started losing it. “By 6.30, they announced that the show was postponed by a day, and people started moving away. Many started booing, and some threw empty bottles on the stage,” said Pulkit, who came with his brother. He added that when the crowd booed and refused to leave the venue in disbelief, another announcer took the stage and said: “If you behave this way, Metallica won’t play tomorrow also.” This further riled the crowd up. “But even then, most people started to leave. And only about 20-30 people jumped the barricade, got on to the stage, and started tearing things apart,” said Atish, who came from Chandigarh. He said if the security people were present near the stage, the vandals could have easily been stopped. “The security was nowhere to be seen, and most of those who were present seemed least interested in what was happening until all hell broke lose,” he said. When nothing was done legally, why blame the security? For looters it has become a funny business[8].

Metallica has the notoriety of “running riot”: Metallica and rioting have been synonymous perhaps. The rioting has been associated with Metallica, as could be seen in the past programmes[9].  

During Metallica’s show in Bogota Colombia in March 2010, Wednesday, March 10, a riot broke out when a group of ticketless fans showed up to crash the gates and barriers.  Rumors has it that Facebook posts encouraging fans to crash the gig. Because of this, police and 1500 officers were deployed to monitor the event.  Meanwhile, Metallica was not wavered with the chaos happening outside, instead they made the 30,000 fans satisfied with their electrifying heavy metal hits. Hundreds of ticketless fans were desperate to catch a glimpse of their metal heroes, causing them to go mad. The police used water hoses and tear gas while the rioters responded by throwing bricks at the officers. The protesters caused a lot of damage such as traffic signals, properties around the park. They even demolished walls to use rocks as missiles. According to reports, four fans and four police officers were injured,  one person suffered from a knife wound. At least 160  people were arrested[10] and 8 people were injured. Metallica last played in Colombia in May 1999. In  January, the band’s concert in Chilean capital Santiago was also spoiled by rioters, with 120 fans arrested after wild encounter with police. 

In the Latin American countries, Metallica has the same notoriety – Columbia, Chile[11] and elsewhere[12]. Thus, there is nothing surprising that the same thing happened in India and the Indians have been made fools without informing about their precedence of discipline and good behavior. As a consumer, any fan of diehard or not-hard or soft-hard should know about his rights, instead of falling in line with the rogues and behave accordingly, as we Indians have age-long tradition of discipline. Even, they themselves have analyzed the reasons for the misbehaviour, misconduct etc[13]. The foreign media knows fully about the pattern as could be seen from their way of reporting, videographing the riots etc[14].

The modus operandi of the Metallica” appears to be like this: The modus operandai has been simple –

  1. Do not respect the law of the land.
  2. Be arrogant, do not get permission, but print tickets and sell.
  3. Sell tickets by any means, duplicate, black market and so on.
  4. Make the diehard fans to get gathered.
  5. Do not bother about the capacity of the hall / place etc.
  6. Make them “mad”.
  7. Call them “buttheads”,………………..
  8. Provoke them to run riot
  9. Arrest the fans, as they paid to get arrested
  10. Blame government / country for the security lapses
  11. Run away with loot.

Vedaprakash

30-10-2011