Open House (July 1-15, 2017 Issue)

Open House

Government Has Three Options In Regard to Air India

Read the Cover Story ‘Maharaja In Mass Mess’ and want to add that the union cabinet will soon decide the fate of the state-owned carrier Air India by deliberating on three options to divest the government’s majority stake and consider the creation of a special purpose vehicle (SPV) to get rid of a major proportion of its more than 50,000 crore debit. The three options on the table are a full 100 percent sell-off, a 74 percent stake sale or retaining a 49 percent share in the airline, as per the note prepared by the Department of Investment and Public Asset Management (DIPAM). As the Finance Minister, Arun Jaitely can consider a total exist from the airline and JRD Tata showing keen interest to renown the airline might encourage government to get completely exist from the airline.

Nipun Seth, Sirsa

Government Lack Resources to Adopt GST Compliance Tools

Though it is widely accepted that GST will bring in changes in the Indian taxation which will be beneficial for all, the GST Council did encounter some resistance to the change. Many states are worried about a possible revenue loss, and some businesses too. With the GST, the government of India is trying to create a digitally healthy economy and it shows that as many as 68 percent of businesses have only limited or no GST- readiness, 18 percent had only a basic understanding of the new tax regime, while only around 14 percent were actively working towards GST adoption. With the few hours left for the go-live date, these metrics are unsettling the hardest shit is the small and median beginners who lack both understanding and the resources to adopt GST compliance tools readily.

Gurvikram Jeet Singh,

Abolish Useless Colonial Practice of Revenue Stamp

Presently revenue-stamp worth rupee one is required for receipts of amounts over a specified limit which is now rupees 5000 even though payment is made through banks. This is also a useless colonial practice which needs to be altogether abolished. Rather signed receipts become useless in case gumming of revenue-stamps is not proper, because major portion of signature vanishes in case poorly gummed revenue-stamp is somehow removed from the signed receipt with signature made on a revenue-stamp. Central government should replace revenue-stamps by specially printed Revenue-Stamp-Papers.

Revenue-Stamp-Papers printed at Government’s security printing-press on lines of normal stamp-papers may be introduced at cost of say rupees one hundred for heavy transactions of say rupees 50000 and above. If needed, such Revenue-Stamp-Papers of rupees ten denomination may also be introduced for receipts of lower amounts. However such Revenue-Stamp-Papers may not be needed in case payment is received through electronic bank-transfers. Presently pre-receipts of government-payments being made through electronic bank-transfer also require revenue-stamps. However such Revenue-Stamp-Papers should be conveniently available at all post-offices and bank-branches (private and public-sector) apart from other convenient centres by providing a sale-commission.

 Madhu Agrawal, New Delhi