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Indian Economy News & Discussion - Aug 26 2015

All threads that are locked or marked for deletion will be moved to this forum. The topics will be cleared from this archive on the 1st and 16th of each month.
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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Singha » 02 Feb 2017 22:28

NDTV
India Sees Highest Domestic Air Passenger Growth In 2016: Report
NDTV - ‎1 hour ago‎
New Delhi: Emerging as a stand-out performer, India witnessed the highest growth of 23.3 per cent in domestic air travel demand worldwide in 2016 twice that of neighbouring China, according to IATA.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 03 Feb 2017 00:02

New Delhi is rapidly growing in passenger capacity. December 2016 saw 5M passengers, which is an annualized 60M passengers if they keep up the growth. In 2015 their figure was 46M while BOM was 41M. DEL and BOM should both be over 50M now. A mere 3-4 years ago they were in the mid-size 20-30M kiddie pool . I hope DEL gets cracking on T4 soon. 60M+ will make DEL a busier airport than places like New York JFK and Singapore Changi, and within the top 5 in Asia together with Beijing, Tokyo Haneda, HK and Shanghai. Meanwhile BLR should be within striking distance of 25M pax/year for 2016.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 03 Feb 2017 00:26

xposting from DeMo thread: Here's some data that shows just how badly misused the taxation setup is:
chetak wrote:Budget 2017 gives clues about demonetisation deposits in banks


Budget 2017 gives clues about demonetisation deposits in banks


About Rs10.38 lakh crore in demonetised currency was deposited in 2.57 lakh bank accounts, showing that a large chunk of the amount came from the super-rich

Roshan Kishore
Thu, Feb 02 2017.

The figures as disclosed in Union Budget 2017 also tell us that 31% of total value of demonetised currency has come back in individual deposits of Rs80 lakh or more.

The figures as disclosed in Union Budget 2017 also tell us that 31% of total value of demonetised currency has come back in individual deposits of Rs80 lakh or more.

New Delhi: One of the biggest expectations with Union Budget 2017 was that the government would divulge details of how much money has come back to the banking system after demonetisation. While the budget has disappointed in terms of giving overall statistics on this count, it does give an idea about the extent of money which has come in deposits of Rs2 lakh and above.

This is what Arun Jaitley had to say in his budget speech: “After the demonetisation, the preliminary analysis of data received in respect of deposits made by people in old currency presents a revealing picture. During the period 8th November to 30th December 2016, deposits between Rs2 lakh and Rs80 lakh were made in about 1.09 crore accounts with an average deposit size of Rs5.03 lakh. Deposits of more than 80 lakh were made in 1.48 lakh accounts with average deposit size of Rs3.31 crores.”

Union Budget 2017: Key highlights and themes

The total amount which has been deposited under these two categories can be calculated by multiplying the number of accounts with the average deposit figures mentioned by Jaitley. This gives a figure of Rs5.48 lakh crores for deposits worth less than Rs80 lakh and Rs4.89 lakh crore for more than Rs80 lakh. The aggregate deposits under the two categories amount to Rs10.38 lakh crore. This works out to around two-third of the total value of demonetised currency, which was valued at around 15.44 lakh crore. These figures also tell us that around 31% of total value of demonetised currency has come back in individual deposits of Rs80 lakh or more. These figures show that a large chunk of the demonetised currency which has come back into banks is from the super-rich.

How much of the deposits reflect unearthed black money?

According to Jaitley, there are more than 3 lakh companies which show profits. There are 76 lakh individuals who report annual income greater than Rs5 lakh. Out of this 56 lakh individuals belong to the salaried class, which means that their avenues for tax evasion are extremely limited. The rest 20 lakh individuals include businessmen and professionals.

It is possible that several of the high-deposit accounts belong to those who are already in the tax net, and have legitimate reasons for holding on to cash. The finance minister has not said anything about whether these are individual or business accounts. In the latter category, a lot of cash could be classified as cash in hand for business purposes, and it would be difficult to say whether these deposits reflect unearthed black money.

However these numbers point to one unequivocal conclusion: most of the super-rich did not flush their cash stocks down the pit. Instead, they have chosen to park their money with banks, fully aware that this might invite scrutiny from taxmen. It is therefore likely that they will have good answers ready if and when the taxmen come to ask questions.

There is very little reason to hope that the post-demonetisation data mining exercise will help unearth a significant amount of black money. This should not come as a surprise to those who have taken even a cursory look at the findings of taxmen on black money, who have reported in the past that cash is the least preferred way of holding unaccounted money.

Of the total deposited money, Rs.10.38 lakh crore was deposited into just 2.57 lakh accounts. That's an average 4+ crore per deposit. Of course in reality there's a lot of skew but it doesn't hurt the thought process to assume everyone's depositing that much.

The previously quoted data shows that 33K assessees reported >1Cr income, with a total assessed income of 2.6 lakh crore, for an average 7.8 crore in income. However, the DeMo deposit data shows that there are quarter of a million people with an average 4Cr in liquid wealth. IT assessment data shows 36K people with assessed income over Rs.1Cr . Those 2.57 lakh people will largely have incomes in the 1Cr range, since it takes years, if not decades, decades to accumulate an average 4Cr in liquid cash, indicating even more in more illiquid assets.

Interesting times ahead.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby sivab » 03 Feb 2017 00:43

Suraj wrote:xposting from DeMo thread: Here's some data that shows just how badly misused the taxation setup is:

Of the total deposited money, Rs.10.38 lakh crore was deposited into just 2.57 lakh accounts. That's an average 4+ crore per deposit. Of course in reality there's a lot of skew but it doesn't hurt the thought process to assume everyone's depositing that much.

The previously quoted data shows that 33K assessees reported >1Cr income, with a total assessed income of 2.6 lakh crore, for an average 7.8 crore in income. However, the DeMo deposit data shows that there are quarter of a million people with an average 4Cr in liquid wealth. IT assessment data shows 36K people with assessed income over Rs.1Cr . Those 2.57 lakh people will largely have incomes in the 1Cr range, since it takes years, if not decades, decades to accumulate an average 4Cr in liquid cash, indicating even more in more illiquid assets.

Interesting times ahead.


Madarassa math in that article.

1.09 crore accts x 5.03 lakh avg deposit/acct = 5.48 lakh crores
1.48 lakh accts x 3.31 crore avg deposit/acct = 4.89 lakh crores
Total deposit: 10.37 lakh crores
Total accts: 1.09 crore + 1.48 lakh = 1.1048 CRORE accts and NOT 2.57 lakh accts

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Supratik » 03 Feb 2017 01:12

So those 1.48 lakh accts are the targets. The good news is that the crooks are small in number but have subverted the entire system. No wonder most people have supported demonetization despite hardship.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby nirav » 03 Feb 2017 01:25

Crude oil could create some headwinds for the govt in the form of an inflated import bill if it breaks out from its resistance of 54-55 dollars. It's doubled after hitting a low of 27 dollars last year..

American shale might help in keeping crude price in check as their cost of production was reported in the 30 dollars range..Reports of increased drilling in US rigs have already started coming in..

The Saudis tried hard to get US shale out of the market and drove oil down to 27 dollars,but with their agreement with the Russian on output cuts, Crudes back at 50+ dollars..

It's still good for this govt, crude at 50 is still way below the 100 dollars a barrel pre May 14..

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby chetak » 03 Feb 2017 01:53

nirav wrote:Crude oil could create some headwinds for the govt in the form of an inflated import bill if it breaks out from its resistance of 54-55 dollars. It's doubled after hitting a low of 27 dollars last year..

American shale might help in keeping crude price in check as their cost of production was reported in the 30 dollars range..Reports of increased drilling in US rigs have already started coming in..

The Saudis tried hard to get US shale out of the market and drove oil down to 27 dollars,but with their agreement with the Russian on output cuts, Crudes back at 50+ dollars.
It's still good for this govt, crude at 50 is still way below the 100 dollars a barrel pre May 14..


This govt has not really reduced petroleum product prices much even after the fall of crude prices. They have an inbuilt cushion already in place. They should be able to ride out the price rise longer than other economies.

Melwyn

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Melwyn » 03 Feb 2017 02:29

^Although politically it would be hard to explain that to the aam aadmi used to free bijli, paani

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby vijayk » 03 Feb 2017 02:33

sivab wrote:
Suraj wrote:xposting from DeMo thread: Here's some data that shows just how badly misused the taxation setup is:

Of the total deposited money, Rs.10.38 lakh crore was deposited into just 2.57 lakh accounts. That's an average 4+ crore per deposit. Of course in reality there's a lot of skew but it doesn't hurt the thought process to assume everyone's depositing that much.

The previously quoted data shows that 33K assessees reported >1Cr income, with a total assessed income of 2.6 lakh crore, for an average 7.8 crore in income. However, the DeMo deposit data shows that there are quarter of a million people with an average 4Cr in liquid wealth. IT assessment data shows 36K people with assessed income over Rs.1Cr . Those 2.57 lakh people will largely have incomes in the 1Cr range, since it takes years, if not decades, decades to accumulate an average 4Cr in liquid cash, indicating even more in more illiquid assets.

Interesting times ahead.


Madarassa math in that article.

1.09 crore accts x 5.03 lakh avg deposit/acct = 5.48 lakh crores
1.48 lakh accts x 3.31 crore avg deposit/acct = 4.89 lakh crores
Total deposit: 10.37 lakh crores
Total accts: 1.09 crore + 1.48 lakh = 1.1048 CRORE accts and NOT 2.57 lakh accts


Is that 10.37 lakh crore final number?

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby hanumadu » 03 Feb 2017 02:46

chetak wrote:
nirav wrote:Crude oil could create some headwinds for the govt in the form of an inflated import bill if it breaks out from its resistance of 54-55 dollars. It's doubled after hitting a low of 27 dollars last year..

American shale might help in keeping crude price in check as their cost of production was reported in the 30 dollars range..Reports of increased drilling in US rigs have already started coming in..

The Saudis tried hard to get US shale out of the market and drove oil down to 27 dollars,but with their agreement with the Russian on output cuts, Crudes back at 50+ dollars.
It's still good for this govt, crude at 50 is still way below the 100 dollars a barrel pre May 14..


This govt has not really reduced petroleum product prices much even after the fall of crude prices. They have an inbuilt cushion already in place. They should be able to ride out the price rise longer than other economies.


But it will affect govt revenues.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 03 Feb 2017 03:14

vijayk wrote:Is that 10.37 lakh crore final number?

No, it's the number associated with high value deposits / depositors that have been reviewed and analyzed so far.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby A_Gupta » 03 Feb 2017 03:19

Some info about possible impact of petroleum price rise:
http://www.hindustantimes.com/union-bud ... WIB4H.html

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby ManuJ » 03 Feb 2017 03:57

Suraj wrote:Another piece of information, regarding the anger about few tax sops above 10L (or other brackets). Here's a breakdown of assessee count and returned income:
Image

This chart shows about 41.5 lakh assesses above 5L bracket, which doesn't match the FM's statement.
Of the 76 lakh individual assesses who declared income of above Rs 5 lakh, 56 lakh are in the salaried class.
link

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 03 Feb 2017 04:01

The tables are NOT from current fiscal year. They're 1-2 year old data for representative purpose of a breakdown of how many in each group. The original link I quoted will show which precise fiscal year the data is for, but it's not 2016-17 .

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby vijayk » 03 Feb 2017 06:14

The goal of BJP/Modi/Jaitley is to make sure every penny of tax is collected.
But the general feeling in middle class: They are being screwed with taxes from Petrol to Restaurants to IT.

I saw little bit of relief for the low base income people but strangely there is no reform in service/sales kind of taxes.

Will GST reduce the burden on common man?

If Modi loses, it is because of perception that he is not doing anything for them.

I don't know if enough people from lower strata will swing to him or not.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby NRao » 03 Feb 2017 06:18

If Modi loses, it is because of perception that he is not doing anything for them.


Just curious.

Who else would without upsetting something else?

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 03 Feb 2017 06:47

vijayk wrote:The goal of BJP/Modi/Jaitley is to make sure every penny of tax is collected.
But the general feeling in middle class: They are being screwed with taxes from Petrol to Restaurants to IT.

From the charts above, the number of assessees in the 2-5L segment vastly exceeds those in all higher segments, combined.

But please, this is NOT the politics thread. Take it to the right thread if you want to discuss the politics further. In quantitative terms, the number of people benefiting from a tax cut vastly exceeds the number who didn't see a change in rates, and that's a fact.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Yagnasri » 03 Feb 2017 07:08

The income tax rates are by and large the same for more than a decade and not taken inflation into consideration. Only salaries people and other who are required to have a recorded income are paying tax and others do not. I myself pay huge income tax and no problem as such except that the tax rates do not take inflation into consideration year after year and business people etc does not pay any tax at all. It is the honest tax player who is put to problems and not the business people and others who do not pay any tax or a negligible amount of tax. Further, there are no services provided to the middle class from the State. No medical or education facilities with quality are available to us. State managed facilities are all pathetic. No one gives any support for anything. No police will provide any security. No one in the administration will give any lawful service which in a normal course without bribes.

I am not advocating any separate facilities or subsidiaries etc. A general improvement of administration and some policies that are aimed to provide facilities to middle and salaried class. I am not saying give subsidies etc. Put some policies wherein you can get easy education loans, and cheaper higher education, for example, can do well. Some good hospital facilities which do not loot patients. No money needed to be spent but policies to be in place. I am sure that it is not too much to ask.

At lower band of IT mostly business people file tax returns which in all most all the cases full of lies. What can we say.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Schmidt » 03 Feb 2017 10:49

It is very strange that nearly 50% of the assessees are in the 0-2L bracket , when they have no need to file any returns.

In fact when I was a salaried employee in the 90s , I never bothered to file any returns till it became mandatory to do so. Then I hurriedly hired a CA and filed ITR for many years at one go, but there was no problem as it was all TDS and in fact I was eligible for some refunds as well.

So who are these guys who so diligently file an ITR when they do not have to do so ?

These can be people with some minimal taxable income and the rest would be non taxable income ( such as farm income , LTCG , etc ). They might find it advisable to have their incomes on record in case they apply for a loan etc.

But I think the vast majority are tax evaders - they are just showing some minimal income so that they appear to be filing their ITRs while earning substantial incomes . They would necessarily be business owners.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Singha » 03 Feb 2017 10:54

^^ yes correct. just 32000 people reporting taxable >10L is a laughable figure. chandni chowk will have more.

unless these cats are caught, the rich people (for personal consumption) and run-down poor country(public infra and services) will continue, whatever be the form of govt.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Prasad » 03 Feb 2017 11:11

Apart from the IT stuff, what I thought was disappointing was the lack of any movement in the ren thousand cesses existing today. Will gst ensure no such cess? Or will we have to dance to the whims of the FM and pay garibi pet full karo cess, bathroom clean karo cess, etc etc?

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby chetak » 03 Feb 2017 11:36

hanumadu wrote:
chetak wrote:
This govt has not really reduced petroleum product prices much even after the fall of crude prices. They have an inbuilt cushion already in place. They should be able to ride out the price rise longer than other economies.


But it will affect govt revenues.


This would have been catered for.

The GoI cannot expect an endless revenue stream from what was essentially a windfall gain.

Besides other revenues have picked up and hopefully, that may ease the situation.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 03 Feb 2017 14:33

I think Yagnasri makes a very important point that the slabs are not inflation indexed, and therefore even a lack of a tax cut is an implicit tax cut since wage and income growth is positive in the salaried economy.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Singha » 03 Feb 2017 14:54

^^ housing EMI, food bill and school fees are the three biggest outgoes for the salaried class. prices of food/transport/goods increase.

in general retail price / housing / school fees inflation has far exceeded growth in salary over the last decade here.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby nirav » 03 Feb 2017 15:03

An important thing to consider while asking for healthcare commensurate with individual tax outgo is that the taxation base itself is very small and the size of the economy wrt overall population is still on the 'developing' economy side.

China with almost 5 times our economy struggles to provide the kind of healthcare and education being demanded in here.

As much as it pains the "honest" taxpayers, the dictum of itne paise me itnaich holds ground.Theres simply no money to dole out the standards that are being asked for in healthcare and education nationwide.

Differential healthcare/education for tax paying assesses is never going to happen and it shouldn't.


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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Hari Seldon » 03 Feb 2017 15:18

^+1.

However, technology is disrupting many business models, particularly in edu and healthcare by altering supply side cost economics radically. Or so I hear and hope.

NM being big on tech and so on, I'd be looking out for pilot projects on this front from NITI. However, just to set expectations right, these projects are again going to be bare-bones "help the max number with the least money == max ROI" variety that middle class won't benefit but the close-to-destitute and rural types will.

Wish more policy facilitation for Narayan Hrudayalaya / Arvind Eye style Wal-mart scale in xyz super speciality hospitals boom and bloom in every major city. Only.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby vina » 03 Feb 2017 15:27

Suraj wrote:I think Yagnasri makes a very important point that the slabs are not inflation indexed, and therefore even a lack of a tax cut is an implicit tax cut since wage and income growth is positive in the salaried economy.


You mean implicit tax INCREASE. If slabs are indexed to inflation, your taxable income goes DOWN than otherwise , with inflation. However, since it is not so, just plain inflation will drag a lot of people into the tax net.

However, I agree with this. Ideally EVERYONE should pay tax. There tax net has actually been lowering it's limit and sweeping up over the years, because of inflation. That is absolutely fine.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby nirav » 03 Feb 2017 15:33



The guy manages to ackthoo real hard on the economy, the country and its future prospects.
If his outlook on military matters reflect his economic view, I'm certain he would have reached Delhi to surrender to the Chinese when global times ran the 10 hour paras in Delhi boast.

I vote for his blogpost as farticle of the week.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby amit » 03 Feb 2017 16:20



Pardon me saying this, but is there any reason to post such dribble? Does it add any value to this thread?

India is an extremely irrational, superstitious, and tribal country. The concept of reason is mainly conspicuous by its absence in much of India. India was long associated with Britain and has imported western institutions, ways of living, technology, etc., over the last 200-300 years, but has failed to import the concept of reason.

The same could be said for Africa, the Middle East, rest of South Asia and most of South America. But we will stick with India here. Without the concept of reason, people can have no understanding of the rule of law, of fairness, or simply of what is right or wrong.

They can only think in terms of might is right, street-smartness and political connections. Such a society cannot have any understanding of the principles of the ten commandments [now you know where he's coming from], or have respect for the individual and liberty.

Assimilating the concept of reason hasn’t happened in the last 200-300 years. In Europe it took about 2,000 years after it was discovered by Greco-Roman philosophers. Could it take another millennium or more before India’s society will be able to assimilate the concept of reason?

In the last three decades, India’s economy has grown, but most of this growth can be attributed to significantly improved access to the western world and its technology through the new medium of internet and cheap telephony. The low-hanging fruit from this have been plucked and India is starting to show signs of stagnation.


I daresay even Lord Macaulay would have been please that Indians still read such drivel written by a descendant journeyman

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Shaktimaan » 03 Feb 2017 17:04




I had the misfortune of reading some more articles of his on the website. He writes with such vitriol, not even Pakis hate India so much. A true self hating Maculayputra.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby putnanja » 03 Feb 2017 18:16

Majority of the self-employed professionals like lawyers, doctors, auditors, CAs etc file their returns but don't report actual earnings. No wonder majority of them show below Rs 10 lakhs as their annual income.

I wonder what it would take to ask PAN info of people for school fees, car/vehicle/land purchases, international travel etc and have them feed into the central IT repository that can then mine the data and compare against filed returns and red flag the likely evaders.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby nirav » 03 Feb 2017 18:32

I've maintained this for long.

As a country we cannot win the war on tax evasion and mis reporting without having very strict mechanisms to deal with erring CAs of which the number is large.

The whole CA-audit arrangement needs an overhaul and drastic reforms.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 03 Feb 2017 21:13

Singha wrote:^^ housing EMI, food bill and school fees are the three biggest outgoes for the salaried class. prices of food/transport/goods increase.

in general retail price / housing / school fees inflation has far exceeded growth in salary over the last decade here.

All of these require separate handling from taxation. While emotionally it makes sense that any lack of tax cuts is painful, in reality unless tax brackets are raised to inflation each year like in US, it's an implicit ~6-10% cut for everyone when it's kept fixed.

General price levels and housing have been historically affected by black money, something that was separately taken on through DeMo. Even school fees arguably are related, since the huge school/college fees often reflect white->black conversion. It would be very helpful if things like school/college fees require PAN and bank deposit.

However these still require separate handling, and should not be confused with taxation levels. Our IT bands are fairly benign now. The tax costs imposed on the middle class are almost entirely the result of rampant underreporting by the wealthy. After all, there are neighborhoods in New Delhi or Mumbai where you could find enough people with incomes above the uppermost slabs, who don't show up on actual assessee record. Anger should be directed at them, not at government.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby A_Gupta » 03 Feb 2017 22:32

http://cranesy.com/hyundai-construction ... 5-in-2016/
Hyundai Heavy Industries (HHI)’ Construction Equipment Division, to be spun off and tentatively named Hyundai Construction Equipment by April this year, announced today it sold about 2,600 units of excavators in India in 2016, 45% up over 2015.
...
In eight years after the completion of its excavator factory at Pune, Maharashtra in November 2008, HHI rose to the 2nd place in the Indian market on the back of the improved sales figures.

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Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 03 Feb 2017 23:35

Significant increases in construction equipment purchase, CV - especially heavy commercial vehicles - sales are all major signs of growing construction and industrial activity momentum.

Trivia: CV sales in India have not yet recovered from the peak of ~2011 when industrial slowdown hit when it was clear UPA2 wasn't backing the significant investments that industry made in expectation of increased growth and demand. These led to the huge buildup of NPAs still visible:

Code: Select all

Commercial Vehicles Sales
2010-11    2011-12    2012-13    2013-14     2014-15   2015-16
7,60,735   9,29,136   8,32,649   6,99,035   6,98,298   7,82,814

We're looking at high 800K numbers this fiscal year. Maybe even 900K. But as you can see, CV sales cratered as industrial momentum fell apart, and it takes years to rebuild from such an economic stall.

disha
BR Mainsite Crew
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Location: gaganaviharin

Re: Indian Economy News & Discussion - Aug 26 2015

Postby disha » 04 Feb 2017 00:13

I know that service employee have all the TDS while businesses can show expenses and take several tax deductions.

For businesses which are legally showing tax deductions., it is their right and as per the tax laws - they should not be assumed to be tax evaders. Salaried employees also take their share of tax exemptions which are not necessarily available for businesses to avail.

I find it interesting that all businesses are assumed to be tax evaders., or rather all tax evaders are assumed to be businesses. But most of the unaccounted wealth is not with businesses but with bureaucrats and politicos and anybody in between who can skim on a transaction (the sales tax wallah or even the IT wallah or the local pan wallah as long he/she has access to resources and can be an effective middleman on govt. doles - this is not business).

Just because BRF have their tax evaders who whine in the DeMo thread and also run businesses., again it does not mean that all businesses are tax evaders. I used to run a business and we used to pay tax diligently (all ST/IT/SC on ST/RTO) and as well take care of the dogs. Even the dogs biscuit was shown as cost to business and an expense and a deduction for business was taken. Yes, I was challenged by one IT-wallah and I asked him to take us to court., he settled with some more dog biscuits. It was more like a settlement outside of court.

Yes., several businesses and tradesperson I talk to now want to avoid 'dog biscuits' and they are very much happy to welcome GST and everything going electronically. This guys are your hands on enterprising businesses. 'dog biscuits' is an AVOIDABLE cost to business., and 'dog biscuits' ensure that the playing field is not-level - an additional area of stress.

Instead of GST being a distraction to the economy., I am countering that GST will actually boost economy!

So to say 'businesses are tax evaders' is basically to say 'commies are the greatest economists'.

Suraj
Forum Moderator
Posts: 11024
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 04 Feb 2017 00:24

disha wrote:Even the dogs biscuit was shown as cost to business and an expense and a deduction for business was taken. Yes, I was challenged by one IT-wallah and I asked him to take us to court., he settled with some more dog biscuits. It was more like a settlement outside of court.

:rotfl: 'Dog biscuits' will make a great addition to the BRFdictionary.

disha
BR Mainsite Crew
Posts: 6130
Joined: 03 Dec 2006 04:17
Location: gaganaviharin

Re: Indian Economy News & Discussion - Aug 26 2015

Postby disha » 04 Feb 2017 03:40

^^ I will be honored if 'Dog Biscuits' make it to the BRF Dictionary., though it was my father who introduced me to that term and hence the credit belongs to him.

Suraj
Forum Moderator
Posts: 11024
Joined: 20 Jan 2002 12:31

Re: Indian Economy News & Discussion - Aug 26 2015

Postby Suraj » 04 Feb 2017 04:04

Submit it so Armen_T can add it :)

Meanwhile:
Apple to assemble iPhone SE in India, negotiating tax benefits to upgrade for flagship model production
Apple is looking to produce lower-cost iPhone SE at its upcoming facility in Bengaluru as it looks to gain a price advantage in the market in which it has been a fringe player so far.

While the plant in Bengaluru, owned by partner Wistron, is already being upgraded to support assembly of Apple’s iPhones, the Cupertino company continues to engage in talks with the central government over full-scale manufacturing of its flagship devices in the country.

For this, Apple is seeking a 15-year tax exemption from the government to make India a hub for exporting the devices rather than just producing devices for the local market, according to officials at the commerce ministry. Apple is facing a challenge of rising input costs in China, apart from the government increasingly cracking down on foreign companies.

Wistron, which will assemble iPhones in Bengaluru, is one among the few original design manufacturers Apple employs to build its iPhones. The company has previously won contracts abroad to manufacture lower-cost iPhone 5c, 5s, and SE devices, while larger partners such as Foxconn have handled production of flagship iPhone models.

“Wistron manufactures low-cost devices for Apple, the iPhone 5c, 5s, and SE. So the chances are high that only those are going to be manufactured at first. It also makes sense for them to save that extra 12.5 per cent on low-cost devices where margins are slim,” said Neil Shah, partner at Counterpoint Research.

India Opens Coal-Mining Market for First Time in Four Decades
India plans to allow non-state mining companies to mine and sell coal for the first time in more than four decades, federal coal secretary Susheel Kumar said.

The nation’s coal ministry will auction four mines to both state-run and private companies during the year starting April 1, Kumar told reporters in New Delhi. The winning bidders will have the freedom to sell the coal, a privilege currently limited to a handful of state-run companies.

Apple Set to Begin Making iPhones in India by April’s End
Apple Inc. will begin assembling iPhones in India by the end of April, a regional minister says, heightening its focus on the world’s fastest-growing major smartphone market as growth slows elsewhere.

The U.S. company has tapped Taiwan’s Wistron Corp. to put together its phones in the tech capital of Bangalore in Karnataka, said Priyank Kharge, the state’s information technology minister. Apple executives met with him in January and confirmed the timeline, he said in an interview.


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