CA Nirmal Ghorawat's Blog

Economics 101 : Without Land, Labour, Capital Reforms : How will India attract Manufacturing Cos relocating from China and elsewhere

I came across a Tweet by Seshadrichari ji who cites a Nomura report that out of 56 companies moving out of China, only 03 located to India with the maximum going out to South East Asia. He targets Politics, Bureaucracy, etc as causes. In my belief, its a more simplistic dimension. Economics Lesson 101 –…
The Direct Tax Vivad Se Vishwas Act 2020 : Criminal Intimidation to settle case pending at a judicial forum by ITD Authorities to meet Revenue Targets : Illegality and Judicial recourse thereof.

Section 3 of the Direct Tax Vivad Se Vishwas Act, 2020 assumes jurisdiction “.. where a declarant files under the provisions of this Act on or before the last date, a declaration to the designated authority in accordance with the provisions of section 4 in respect of tax arrear, ..” . There is no provision…
Carbon Tax on fossil fuel to fund oil saving infrastructure

Oil prices have fallen to record low levels and Indian government has raised taxes keeping pump prices artificially high. The Government should consider earmarking a portion of the carbon tax on fuel so collected on modern public transport infrastructure such as metro railways, suburban railways, electric bus rapid transit systems (eBRTS), and high-speed (350 km/hr)…
Prohibit Charitable Trusts to Accumulate Incomes u/s 11(2) of I T Act 1961 or transfer surplus unspent incomes to PM CARES Fund

At present, Charitable Trusts registered with the Income Tax Department are allowed to accumulate a portion of unspent Incomes u/s 11(2) of the Income Tax Act, 1961 without payment of Income Tax. One measure to nudge Charitable Trusts to spend more of their Accumulated Income and Reserves to fight the CoViD19 pandemic would be to prohibit them…
The wealthy are like sheep : You can fleece them many times but skin them only once

Ex Chief Economic Advisor, Arvind Subramanian in an Interview to The Economic Times published 16 April 2020 suggested the re-Introduction of Wealth Tax and I quote :”The government should consider a Solidarity Fund with a one-time annual contribution coming from the wealthy and the employees in the organised sector… The wealthy could contribute via a…
Accounting Automation Product – Trial Version 0.1

We are an India based Accounting Automation startup. We have developed an Accounting Automation product which takes away some of the mundane accounting tasks and lets the system and a business’ external trade partners be the trigger for automated data entry and processing into an enterprise’s accounting records / ERP; all still within the your…
TDS ON CASH WITHDRAWLS

The Finance Bill, 2019 has introduced Section 194N in the Income Tax Act 1961 to provide for TDS @2% on cash withdrawls exceeding 1 crore from one or more bank accounts. 1. According to section 4(2) of the Income Tax Act, 1961, the charging section for TDS, “income tax shall be deducted at source in…
A suggestion : MRP Based GST Compensation Cess

I have a suggestion that can increase the GST Compensation Cess collected by Union Government as well as reduce the compliance burden of GST Compensation Cess on small and marginal traders. The place of supply rules under GST Law are important for determination and appropriation to respective states where actually consumption of goods and services…
India – Bangladesh – China Trilateral Trade in Textiles & Garments

India enjoys a trade surplus of around 8 billion USD (India exports to Bangladesh of over 9 Billion ISD, India imports from Bangladesh less than 1 billion USD). To compensate Bangladesh for Trade Surplus, India has offered duty-free and quota free entry to Bangladesh goods under the (South Asian Free Trade Area) SAFTA agreement in…
FINTECH & LAW 2 : RBIs MTSS

Fintech – the portmanteau of the words “Finance” and “Technology” is the buzzword in Finance and Technology worlds with a large number of newage startups disrupting legacy businesses of established financial institutions. Whilst great emphasis is laid on the Finance and Technology aspects of their startups, budding entrepreneurs fail to gauge the law / legal…