Whose Loss is it any way...?
CA Milind Limaye
Partner at Kirtane & Pandit LLP, Chartered Accountants | Internal Auditor by Passion | Forensic Auditor by Choice | Like to Connect with People | Open for Discussions | Speaker | Seasoned Mentor
On 8th November evening, the Indian PM Shri Narendra Modi declared the demonetization of the currency notes of Rs.500 and Rs.1000, which came as a big shock to many factions of the society. The reasons given include arresting and curbing the black money. The decision was well received by the majority of the Indians. They are happily ready to face all the difficulties arising out of this.
I was also one of them till last evening. While on my way to home, I met a gentleman who often deals with government officials and bureaucrats for his business purpose. He was not happy. Initially I thought that may be he is worried about his own bundles of currency notes. But that was not the reason.
The reason he told was absolutely shocking. He told that during the day he received many calls from various authorities telling him that from next month they have doubled their monthly hafta (fixed amount as bribe). When asked he was given a shocking explanation. They shamelessly explained, that because of this decision they have lost lot of money. Now who else other than you people can make it good? So far you have praised the PM for this, now face the consequences.
So as the PM expected, it will not be these corrupt people, but it will be the common man who is ultimately going to suffer. I am thinking and thinking since then. I am converging to a thought that unless the efforts are made to reduce the nuisance value of the authorities, it is not possible to control the generation of the black money.
What are your views...??
Architect, Enterprise Solutions
8 年Its the story of Goose laying Golden Eggs. Modi can take away the eggs-in-hand. So, the Goose has to work harder to make up the eggs lost. Demonetization can grant you a clean sweep on a given date. But its just a symptomatic cure. The entire bureaucracy, polity (from Delhi to Gulli), his MPs, his Ministers have come this far... only because of lure of easy money the 'position of power' brings to them. I hear that just an appointment as a Police Constable has a premium of 25L. Ministers n Prime Ministers n Chief Ministers trade favors with private parties to monetize their discretionary power over the public properties n funds. And anyway, does paying 33% income tax on the ill-gotten money make it white?
Cost & Management Accounting Professional, DISA, Registered Valuer for Securities or Financial Assets
8 年In our everyday lives, a lot of things are "not so right" - we buy chai and wada-pav from street hawkers, we buy vegetables from the vendor occupying the footpath, we buy cheap clothes from the road-side stalls. Do we check if they have a license? Do we know if they are paying octroi, sales tax, income tax? Do we know how much of "hatta" is built into the price? Things won't change much until government makes compliance easier and non-compliance is considered a public disgrace by the society.
Founder Director @Konnect Books & Taxes- ( GGI - Global Alliance firm)- Chartered Accountant
8 年Milind Limaye - This is all about human behavior - the more your tolerate , the more you suffer! Power vested should be used properly- not a easy game :) Choices one has to make - are we with the change? then fight!..agree - its not easy - but then standing with RIGHT things can never be easy :) I understand fully with what you trying to say - ! Thanks for the reply and letting me share my views.
Partner at Kirtane & Pandit LLP, Chartered Accountants | Internal Auditor by Passion | Forensic Auditor by Choice | Like to Connect with People | Open for Discussions | Speaker | Seasoned Mentor
8 年Kavita, you are partially right. But at times, one needs to the hafta for not creating any trouble. Let us take an example of a transporter. There are few who do not overload their trucks, carry all proper documents. Still they are required to pay some minimum amount. Else these authorities will make them wait at the check post without any valid reason. The assistant will say that I agree that you have all the papers, but wait till Saaheb comes. These kind of things lead to force the person paying minimum amount if everything is proper.
Founder Director @Konnect Books & Taxes- ( GGI - Global Alliance firm)- Chartered Accountant
8 年Milind, - this common man of the above post of yours - why does he has to pay any hafta (bribe)- this is first question? All these policies, changes from the Government are for corrupt free economy - if you need to pay hafta - either you are doing something NOT SO VERY RIGHT , or you do not have guts to talk if someone is just manipulating you, for nothing! - my small take on the above post!