jump to navigation

Black and White January 12, 2007

Posted by Vijay in Business, India, Issues, Trends.
trackback

Are the ways of doing business transactions changing in India? Are the days of the two sided transactions over? Murali writes in his thoughts.

Was talking to a friend who was trying to sell some “land” to a real estate developer. He said that he was very comfortable with Brigade Group and Sobha Builders. Reason: They were upfront in telling him that all the money they pay will only be in “white” and strictly no cash. What a pleasant surprise!!

Is it because corporate India is consciously cleaning up its act? Maybe they now feel it is no longer worth playing dodge with the tax authorities. It could also be, that going public (Sobha is now public and Brigade may be having plans) puts a far greater scrutiny on these companies?

I read somewhere that a similar scenario is emerging in a similar hitherto secretive sector – the diamond merchants (more precisely the site-holders – those who buys diamonds from, say De Beers, cut/finish and then distribute to retailers). These guys are opening up their books and allowing greater transparency into the way they conduct their business.

Must be happening elsewhere too. Hopefully this is the start of a fundamental change in the way business is conducted in India and not one-off situations.

No wonder the Ministry of Finance, expects the Revenue targets for 2006-2007 budget to be exceeded by 32% this year! Which means our fiscal deficit should also be lesser than expected, provided the expenditure does not exceed budgeted numbers.

Advertisements

Comments»

1. Veena Shivanna - January 12, 2007

Wow!! This is wonderful.. May be people like Murali should be in secretriat!!!
Nice post on the National YOUTH DAY.. Vijay nodi kaliri, your other post on the Bangalore Blues is the saakshi 🙂 Ha Ha….

I am glad that there is a fundamental change here, India is poised!, you may put that video which I sent you over email, the combination will sound even more better, yesterday there was a nice post on Silkboard’s blog too. Everything looks so optimistic ultimately!!

Jai bhaaratha maathe! 🙂 Devaru nimagelle oLLedu maadli, oLLe buddi kodli 🙂

2. M O H A N - January 12, 2007

Seems like some “white” things are happening!!! Good for us, good for country too.

Hope we dont have to provide 2 ledger accounts to all the merchants of india!!

3. praneshachar - January 12, 2007

yes it is true slowly but surely change is taking place it is happening for the last couple of years. I also heard of some foreign cos., saying no
to giving any money/favours to govt. people on the other hand they are
saying if it is legal and correct fight it out in courts dont do anythin which
is againist law wonderful
one more reason why this change is coming is reduction in tax rates
there was a time when you were taxed at a very high slab rate of 80 to 90 % after certain levels what interest people will have to earn so rthey were resorting to this type of things
I remeber the words of one who taught us income tax
evasion of tax is immoral unethical avoidance of tax by good practices and tax planning is the right thing this he was telling us
25 years back he is no more today
he was a great person a committed orthodox and believe me was very active in professiona activities. man with juttu and coming to teach in dhoti and contested elections for our professional body and
won with thumping majority maximum no. of votes and actively
partiocipated in all the coulcil meetings travelled widely but never gave up his personal agenda also he was pious religilous and all
his strentgth was knowldge and his followers were his students
he is no more today but hat off to him. very happy to share my thoughts about him here. he was an authority on Income Tax and was practising CA in Madras a man from karnataka

4. Murali Partha - January 13, 2007

Interesting that you should mention tax planning v/s tax evasion. Assuming that you are from the CA fraternity, tell me would you or your colleagues take offense if somebody called you “creative” in your accounting practices? I have known some who took offense at that or being called bean-counters (that I can understand :-)) But isn’t being creative one of the facets of good financial engineering?

5. praneshachar - January 13, 2007

Yes I am a chartered accountant and proud to be a CA but love all professions as all are unique and all are essential for life and required. The above mentioned great soul sri.Gururaja upadhyaya use to mention CA profession is like priest or purohit you need them when child is born……………………………………..during life for all occasions like munji maduve etc., and also when a person dies like that accountants are needed when a co., is under formation and also during its life time and also un the event of some co. going red and liquidated even then there is need to wind up
now we can have prefix
CA followed by your name like DR.
I dont mind you call creative but creativity should not be destrucitve and creativity in accounting profession should be within the framework of law professional ethics morality etc. etc.,

CA PRANESHACHAR.K

6. SoftTrader - March 21, 2007

Are we talking sense here? I am desperately trying to sell land in Madras. Now even if the seller will pay up in White the registration office wont let me register. Say in Vadapalani. I will get 5000Rs/sqft in reality and might be atbest able to register at 2000Rs/sqft. Explains why I dont even know whether to sell or not. Brigades and likes will buy at 2000Rs/sqft (analogy), so one who sells to them may think it is white but you are a stupid loser.

7. praneshachar - March 26, 2007

if you want to register at your actual cost no register office
or govt agency can deny. only they suggest you register for
less in the savings you have made give us our share like
dogs they bark for their peice of bone. nothing can deny you
from registering at higher value than what is notified value.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: