ideas for the ensuing NATIONAL BUDGET

 

 

 

 

"A visit to our website adds value"

 

Thursday; June 18, 2009; 1032 Hrs (IST)

 

Dear Sir,

 

BUDGET 2009

 

Abolish FBT

 

The concept of FBT has brought about a lot of discipline in managing accounting requirements and in understanding how much of money of the company is being spent on fringe benefits. However for small enterprises, it is an additional burden and adds to administrative cost. Most of the Indian Enterprises falling under the category of micro and small enterprises within the meaning of the Micro, Small and Medium Enterprises Development Act, 2006 do not pay their executives and employees well as compared to output of a person of same calibre in developed economies. Therefore there is no point in putting these micro and small enterprises into administrative difficulties. 

 

Exempt Professional Firms from Service Tax:

 

It is very unfortunate that there is no service tax on lawyers though Company Secretaries and Chartered Accountants have to manage a high cost administrative system and be at a disadvantage when compared to Lawyers. Other than litigations in civil court or criminal courts, most of the highly paid assignments are generally done by all the professionals and therefore Service Tax should be totally abolished for all small and micro enterprises. Or at least discrimination should not be allowed.

 

Profit Parking in international transactions

 

It is very important that international transactions and FDI and ECB inflows are closely monitored so as to avoid large scale avoidance of taxes through transactions that are structured in a complicated way. Profit Parking takes place through seemingly arms length transactions and Transfer Pricing and Valuation Departments in the Income Tax law and Customs law should gear up to catch the big fishes. Instead in India micro and small enterprises who mostly do domestic transactions are being harrassed in the form of administrative and cumbersome works, audits, scrutiny, assessment and such matters where return on labour and time invested would be grossly meagre both from the point of view of the assessee and also the department.    

 

Thanking you,

 

Yours truly,

 

Dr.K.S.Ravichandran, M.Com, LL.B, FCS, Ph.D.

Partner,

KSR& Co.,

Company Secretaries,

Bangalore, Chennai & Coimbatore

 

Coimbatore Office

Indus Chambers,

Ground Floor,

No.101, Govt. Arts College Road,

Coimbatore – 641018,

Ph. No. 0422- 2305676, 2302868,

Telefax: (0422) 2302867

Email Id: rirs@eth.net

Website: www.ksrandco.in

 

-----------------------------------------------------------------------------------------------------------------------------------------------------

DISCLAIMER

 

The information in this e-mail is confidential and may be legally privileged. It is intended solely for the addressee. Access to this e-mail by anyone else is unauthorized. If you have received this communication in error, please address with the subject heading "Received in error," send to rirs@eth.net, then delete the e-mail and destroy any copies of it. If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful. Any opinions or advice or clarification contained in this e-mail are legally privileged and any loss arising to any unintended recipient is not binding on KSR & Co., Company Secretaries or its signatory. Opinions, conclusions, advise clarifications and other information in this e-mail and any attachments that do not relate to the official business of the firm are neither given nor endorsed by it.

 

KSR & Co., Company Secretaries cannot guarantee that e-mail communications are secure or error-free, as information could

be intercepted, corrupted, amended, lost, destroyed, arrive late or incomplete, or contain viruses.

 

Copyright in this email and any attachment thereto are created by us and will remain vested with us and will not be transferred to you and is not deemed to have transferred to you due to receipt of this email. We assert the right o being identified as the author and we retain every right to proceed legally in case of misuse or infringement.

 

THANK YOU

-----------------------------------------------------------------------------------------------------------------------------------------------------