TIOL-DDT 264 · the untouched capture
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<html> <head> <title>Untitled Document</title> <meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1"> </head> <body bgcolor="#FFFFFF"> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#663399" size="3">TIOL-DDT 264</font><br> 19 12 2005<br> Monday</b></font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>CBDT going private- silently</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>WANT</b> 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<br> <br> 1. <b>As is</b> study of the existing processes<br> <br> 2. Gap analysis<br> <br> 3. “To Be” study and Redesign process<br> <br> 4. Surveys of taxpayers. Employees and stakeholders<br> <br> 5. Change management plan to secure ‘buy in’ of employees and stake holders<br> <br> 6. Preparation of a comprehensive BPR Report.<br> <br> One of the aims to be achieved in the Post-BPR environment is <b>“to create world class and professional working environment for all employees”</b>. Will they be given fat salaries? Is it possible?<br> <br> <b>A Rich man’s game</b><br> <br> 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.<br> <br> 1. The application form costs Rs. 5000/-<br> <br> 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.<br> <br> 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. <br> <br> 4. He should have done at least one BPR work of value greater than Rs 5 Crores.<br> <br> 5. Should have done at least one BPR job for the Government or a PSU for at least Rs 1 Crore.<br> <br> 6. Must have had at least 150 consultants in each of the last three years.<br> <br> <b>The Service Tax department should keep a close watch on the applicants.</b> 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.<br> <br> 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?<br> <br> 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. <b>Nothing of the sort happened and now they need somebody to tell them why it did not happen.</b><br> <br> 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!</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>A simple solution:</b><br> <br> ++ Exempt income up to Rs. 2 Lakhs<br> <br> ++ Levy a simple tax of 2% for income between 2 Lakhs to 1 Crore<br> <br> ++ Tax income above 1 Crore at 10%.<br> <br> ++ Remove all exemptions<br> <br> ++ Levy a corporate income tax of 2% on turnover on all business enterprises<br> <br> There will be far better compliance and more revenue.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">See detailed coverage in 'Breaking News'</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>FBT will not be reversed – CBDT Chief</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Speaking at the Bengal Chamber of Commerce & Industry, the CBDT Chairman M S Darda said that the government will not withdraw fringe benefit tax, which was introduced in the budget for 2004-05, but the process would be made less painful.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Doctors of India's health city under scanner – Income Tax raids Chennai doctors</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The People’s Daily of China reported on Saturday,</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Doctors in south Indian city, Chennai, which boasts of providing global state-of-art healthcare facilities and draws patients worldwide, are under scanner. The Indian tax department conducted raids on hospitals and doctors in south India 's Tamil Nadu, suspecting a tax evasion racket amounting to 100 million rupees (1 US dollar is equivalent to 43 rupees).<br> <br> Up to 300 men from the department seized Rs 6 million in cash after raiding six hospitals in Chennai, two in Kumbakonam, and offices and residences of 14 prominent doctors.<br> <br> Other assets worth of several millions were also seized from various places in Chennai.<br> <br> "We have done only 40 percent of the job," Chief Income Tax Commissioner Santosh Dutta said.<br> <br> "We are looking at tax evasion of more than Rs 100 million," Dutta said. Chennai is known for providing best facilities in the country in eye and heart care. Though good hospitals are gradually coming up in other Indian cities as well, some of the country's top hospitals including Apollo are already present in Chennai.</font></p> <p align="center"><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"> <b>Central Revenue Sports Meet from today</b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The 38th ALL INDIA CENTRAL REVENUE SPORTS MEET will be inaugurated today in Jaipur by CBDT Chief, Mr. Darda. This is a jamboree for ageing had been sportspersons of the department. No competition worth any standard takes place in these meets but huge amount of money is wasted on arrangements and the grand finale – a bada khana. The organisers collect advertisements from assessees for the souvenir and lakhs of rupees are squandered for sub standard sporting activity. The Revenue departments have not been recruiting sportsmen for the last fifteen years and that alone will speak volumes about the quality of sports in these meets. Some years ago one of these meets was organised in a small city. The organisers spent about Rs. 20,000 to get huge foam beds for the high jump event. There were only three participants and they did not want to jump. They decided to have an out of the court settlement and decided who will be declared as the first, second and third prize winners without rising an inch above the ground. The only purpose of these meets seems to be to get some increments for some old alleged sportspersons.</font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><br> <b><font color="#663399">The good of the people shall be the highest law – Cicero (106-43 BC)</font></b></font></p> <p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#FF6666">Until tomorrow with more DDT<br> <br> Have a nice day.<br> <br> Mail your comments to</font></b> <a href="vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com </a></font></p> </body> </html>