CBDT going private- silently
WANT to buy the Income Tax Department? Applications are available from 10 am today at Rs. 5000/-. It is not outright sale as of now but may eventually lead to that. The CBDT has floated a global tender calling for applications for the first stage of the Business Process Reengineering (BPR). The first stage involves assisting the CBDT in
1. As is study of the existing processes
2. Gap analysis
3. “To Be” study and Redesign process
4. Surveys of taxpayers. Employees and stakeholders
5. Change management plan to secure ‘buy in’ of employees and stake holders
6. Preparation of a comprehensive BPR Report.
One of the aims to be achieved in the Post-BPR environment is “to create world class and professional working environment for all employees”. Will they be given fat salaries? Is it possible?
A Rich man’s game
Obviously preparing such a report is not child’s play; it’s going to be a game that only the very rich can play as the following facts will reveal.
1. The application form costs Rs. 5000/-
2. The application fee is Rs One Lakh and that too non-refundable. So if you want to apply, you should be prepared to lose Rs 1,05,000, whether you get the contract or not.
3. The applicant should have had a turnover of at least Rs 50 Crores from Management Consulting Fees in each of the last three years.
4. He should have done at least one BPR work of value greater than Rs 5 Crores.
5. Should have done at least one BPR job for the Government or a PSU for at least Rs 1 Crore.
6. Must have had at least 150 consultants in each of the last three years.
The Service Tax department should keep a close watch on the applicants. If any Indian company has applied, it should have paid Service Tax on a minimum value of Rs. 150 crores. So the big corporates who will apply better be sure that they have paid Service Tax. Otherwise they may be providing management consulting to CBDT but they may have to run to Service Tax consultants.
Is the CBDT serious about this project or is it a big joke? How much is CBDT going to spend on this project and is the tender document made in such a way that only a particular person or group can apply? Is the consultant already identified? And finally is CBDT competent to implement the project as and when and if it is ready?
And what will happen to all those Chief Commissioners and large number of computers the department acquired recently? The IRS officers got their promotions and cadre review promising the government huge revenue. Nothing of the sort happened and now they need somebody to tell them why it did not happen.
All that is going to happen is – some big foreign company is going to bag this contract; squeaky voiced girls and boys are going to be all over the place interviewing people on what is wrong with CBDT and a bulky report is going to be presented. Nobody will understand the report. They will appoint a Committee to study the report and that committee will submit a bulkier report, which no one will read. And by that time every one would have forgotten all about BPR!
A simple solution:
++ Exempt income up to Rs. 2 Lakhs
++ Levy a simple tax of 2% for income between 2 Lakhs to 1 Crore
++ Tax income above 1 Crore at 10%.
++ Remove all exemptions
++ Levy a corporate income tax of 2% on turnover on all business enterprises
There will be far better compliance and more revenue.
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