Comments on: The tax scenario in India http://www.ashishmehta.com/blog/2005/12/the-tax-scenario-in-india/ i blog here ... once in a while Tue, 04 May 2010 14:36:07 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: VIVEK JAIN http://www.ashishmehta.com/blog/2005/12/the-tax-scenario-in-india/comment-page-1/#comment-14034 VIVEK JAIN Wed, 09 May 2007 04:27:41 +0000 http://www.ashishmehta.com/blog/?p=4#comment-14034 The newly introduced service tax on rental income, with an object of taxing, corporates engaged in leasing of office space with plug-n-play equipment, has indirectly hurt several property owners reeling under the fixed terms of contract, for in the case of properties covered by rent control laws, where even the regular yearly increments of rents, cannot be enforced without resorting to process of law, which again takes few years, before being finalized. Now, if the corporates who enjoy the advantage of revising service charges (read - rent) of leasing their properties with plug and play are equated with these landlord, the corporate may end-up passing on the tax to the occupants (read - tenants), thereby don’t feel the pinch, while all those individual landlord, big or small would end up either in litigation or paying higher tax. The indirect tax introduced, directly hits them. I believe the definition of "person" in the act, so far it deals with service tax on property rent, ought to have been simultaneously revised to read as corporate entities AND leasing of property ought to have been explained as those, being with variable terms of contract and tenure. :oops: The newly introduced service tax on rental income, with an object of taxing, corporates engaged in leasing of office space with plug-n-play equipment, has indirectly hurt several property owners reeling under the fixed terms of contract, for in the case of properties covered by rent control laws, where even the regular yearly increments of rents, cannot be enforced without resorting to process of law, which again takes few years, before being finalized. Now, if the corporates who enjoy the advantage of revising service charges (read – rent) of leasing their properties with plug and play are equated with these landlord, the corporate may end-up passing on the tax to the occupants (read – tenants), thereby don’t feel the pinch, while all those individual landlord, big or small would end up either in litigation or paying higher tax. The indirect tax introduced, directly hits them. I believe the definition of “person” in the act, so far it deals with service tax on property rent, ought to have been simultaneously revised to read as corporate entities AND leasing of property ought to have been explained as those, being with variable terms of contract and tenure. :oops:

]]> By: Kalyan http://www.ashishmehta.com/blog/2005/12/the-tax-scenario-in-india/comment-page-1/#comment-8956 Kalyan Sun, 04 Mar 2007 16:48:20 +0000 http://www.ashishmehta.com/blog/?p=4#comment-8956 Hi: Allow me to add a few lines to your post : 1. You start a business and pay stamp duty 2. You pay commercial property taxes if you want to run an office...failing which, as has happened in the case of delhi, your office gets sealed 3. You employ people, you pay fringe benefits tax...and that too on a presumptive basis 4. You provide a service, you pay service tax 5. You invest, you pay a securities transaction tax 6. You make profits, you pay income tax 7. You want to reward shareholders by paying them a dividend, you pay dividend distribution tax 8. You manufacture, you pay excise duties 9. You sell and pay VAT 10. You accumulate wealth, you pay wealth tax 11. You buy a car, you pay road tax 12. You buy a house, you pay municipal tax 13. You die after leaving a will, your next of kin pay a court fee to get your property which you have already decided to leave to them after having paid all the taxes described above. Of course, Chidambaram may not be responsible for all of this, but someone should conduct a study of how much of income is paid out in taxes of any kind. Only then will we have a realistic estimate of costs of compliance with our outdated laws and rules. Cheers, Kalyan Hi:

Allow me to add a few lines to your post :
1. You start a business and pay stamp duty
2. You pay commercial property taxes if you want to run an office…failing which, as has happened in the case of delhi, your office gets sealed
3. You employ people, you pay fringe benefits tax…and that too on a presumptive basis
4. You provide a service, you pay service tax
5. You invest, you pay a securities transaction tax
6. You make profits, you pay income tax
7. You want to reward shareholders by paying them a dividend, you pay dividend distribution tax
8. You manufacture, you pay excise duties
9. You sell and pay VAT
10. You accumulate wealth, you pay wealth tax
11. You buy a car, you pay road tax
12. You buy a house, you pay municipal tax
13. You die after leaving a will, your next of kin pay a court fee to get your property which you have already decided to leave to them after having paid all the taxes described above.

Of course, Chidambaram may not be responsible for all of this, but someone should conduct a study of how much of income is paid out in taxes of any kind. Only then will we have a realistic estimate of costs of compliance with our outdated laws and rules.

Cheers,

Kalyan

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