Chinese Goods

Food for Thought on 19-Oct-2017: 

Chinese Goods: Everyone knows China has flooded Indian Market with its goods. We import 5 times worth of goods from china that of we export [ 2016- Import $58.4 Bn, Export $11.8 Bn ]. Now, the question is: How to reduce Import from China? It has several points to explain. (1) Do we really need those imports? (2) Can’t we produce these good in India? (3) How to reduce dependence on china arising out of the national sentiment? Let me give short and simple answers in the following: 

(1) NO, we don’t- but over the years we have become dependent on china for even non critical items, there by jeopardizing our own small time artisans. We must cut down these imports. 

(2) We CAN! But again “At what cost?” Today, the situation is that we lack in infrastructure, and productive labour. Even if we set up units to manufacture, the cost of production would be too high to sustain. China has an advantage: it can produce the same product with a very wide range of quality, starting at very low to very high. [ Example: Say a mobile of $10 quality to $1400 quality ]. Everyone knows iPhones are manufactured in China- Imagine if these were manufactured in the USA- these would cost double or more. 

(3) We must thrive for (a) reduction in Chinese import, and (b) enhancement of our own manufacturing facilities on a long term basis. I know it can’t happen within a few years, but we have to start as soon as possible. Think it over!

Capital Punishment-1

Food for Thought on 15-Oct-2017: 

Capital Punishment: Every time a convict is awarded capital punishment, there happens a hue and cry, as to why this punishment shouldn’t be banned. There are both supporters and criticisers for this capital punishment arguing their points in vain. As I wrote in an earlier article on “Administrative Reforms in Indian Context” (details given below:)  two points are relevant today: 

(1) To end capital punishment in India we need the requisite legislation passed by the Parliament. Shouting in the street or criticizing the Govt won’t do. After a careful contemplation I have come to the conclusion that it must stay, and rather there should be more number of this, because under the present circumstances, there are more crimes which deserve this. 

(2) Having said that, I also suggest that the execution should be as painless as possible, like administrating higher dose of anesthesia to the convict under medical and legal supervision. We must get rid of the age old crude method of hanging by the neck till death. It’s heartening to know that the GoI is thinking in this direction.

Published in Linked-In: Links given below:

V-1= https://www.linkedin.com/pulse/20140825182838-270568946-administrative-reforms-in-indian-context/; 

V-2= https://www.linkedin.com/pulse/administrative-reforms-indian-context-v-2-himansu-s-mahapatra/

Service Tax

Points to Ponder, on 9-10-2017:

Service Tax: Ever wondered that there are service taxes for only the sake of it and without the service in reality in some cases. Let’s take the examples of Bank Penalty, or Life/General Insurance where there is no Claim. The Bank imposes a penalty for certain conditions not fulfilled by the customer. But is it a service rendered by the Bank? Think over! The Insurance contract is an agreement for the Insurance Company to provide service in case of an emergency or eventuality. So no claim means no services rendered. The GoI should find out where there is a service actually rendered and then tax it. What do you say?

Income Tax - FY & AY

Food for thought on 05-Oct-2017: 

Income Tax Financial Year: Sometimes during 2004-05, I was thinking of some improvements in the IT rules. The first thing that came to me mind was the Financial Year (FY)- which is different than the Calendar Year. Now why don’t we make the FY coincide with the Calendar year, i.e., from 1-Jan to 31-Dec. After 12 years or so the GoI has woken up to this idea and may implement it in 2019. This will simplify many clumsy notations, statements, computer memory space etc. The latest news says that the Govt has put off this to the next year- 2019.