* Americans use cash for 45 per cent of transactions by volume. * Germans use cash for 80 per cent by volume. * Japan uses cash for an amazing 82 per cent of transactions by value and over 90 per cent by volume. What the writer does not want to highlight is the fact that democratic institutions in these countries are very strong with the effect that tax evasion is very difficult there. In my home state (Kerala), when a land property worth is sold for Rs 1 crore, what they show in the property deal at the time of registration is hardly Rs 20 lakhs. I don't know about other states. It is an open secret that for a sizeable percentage of these land deals, hawala money and bribe money is the main capital.
The law is made in such a way that hawala money and bribe money can be safely used for these land transactions.
Re: cash vs cashless
by SUMITH NITHIN on May 18, 2017 08:00 PM
Ur point is right, but i would stongly contest that If the governments stop charging exorbitant stamp duty and registration fees then the reasons for such illegal transactions would vanish and our government will never do it, they want to loot the people. Secondly why only 1% or so file IT returns, or why CA's have heavy business, reason is again nobody wants to pay tax. So why dont they abolish income tax atleast then those reasons to not declare, under declare income vanishes.
Please note they should abolish ONLY Income Tax and Service Tax and Nonsensical Stamp Duty and Registration Fees and Re-introduce Wealth Tax
Now learned folks are bound to argue how the govt earns if it abolishes taxes.
Well please look into the label of each and every product that you purchase, what is MRP(inclusive of all taxes)? If u r learned enough then you should be knowing that you as a consumer are paying those taxes, then why again pay income tax and service tax. You buy petrol or diesel or CNG, do you know they charge almost upto 50% as tax(varies among states) So do the maths. Also government should have a body to look after and control its own expenditures and thereby save money, after all it is our money.
Going cashless is a good thing for everyone in the long run. Just to blame Modi, do not crib about the negatives. Everyone will eventually get used to it including street vendors. Something like this de-mon is the only way to speed up the process, otherwise only some people will adopt it and most shopkeepers will continue with cash. Some coersion IS needed for this type of thing
The 'black' money which was held by a money lender could be lent to a small farmer, though at a higher interest rate.
The small farmer won't get the loan now, because the lender can't withdraw. Instead all of the lender's money might from the back go to one big farmer. Got it?
How does mopping up black money into accounts work? It has simply stopped the circulation and killed many small parts of the economy, which were holding together the informal and unorganized sector. Such sectors won't get organized overnight because of someone's wishful thinking !
The money lenders in question are all affiliated to political parties, or are politicians themselves. No one with such money can stay out of sight of the politicians.
So some money kept away from corrupt bank officers is safer and no money is invisible to politicians. Every corrupt official becomes a politician one day. So just catch and jail those fellows, things will stop.
Finally, someone must explain why and how I-T raid on Sahara offices in Nov 2014, was settled and closed so quickly
Re: Service Tax on Medicine
by MALAPPURATHU NARAYANAN on Jan 15, 2017 12:10 PM
service tax was there even before the note ban. Your hospital was evading it. Was it the Modi government who imposed service tax on hospitals? Or was it Chidambaram under Manmohan Singh government?
I paid Rs. 147/- for nearly 4 kg. CNG gas refill at IGL station by debit card. Bank charged me Rs. 11.50 for this transaction. It means gas cost me higher by Rs. 3 kg. IGL station wrongly forced me scratch card twice stating that transaction was not complete. Later I found that Rs. 147/- was debited two times. Although, IGL refunded Rs. 147/-, but I had to pay extra Rs. 11.50 to the bank, as bank has debited Rs. 11.50 two times. Thus, gas cost me higher by Rs. 6/- kg. This was horrific cashless experience for me.
I paid Rs. 147/- for nearly 4 kg. CNG gas refill at IGL station by debit card. Bank charged me Rs. 11.50 for this transaction. It means gas cost me higher by Rs. 3 kg. IGL station wrongly forced me scratch card twice stating that transaction was not complete. Later I found that Rs. 147/- was debited two times. Although, IGL refunded Rs. 147/-, but I had to pay extra Rs. 11.50 to the bank, as bank has debited Rs. 11.50 two times. Thus, gas cost me higher by Rs. 6/- kg. This was horrific cashless experience for me.
The author should have specified the source of his data as regard status of cash transactions in the US, Germany and Japan. As far as I could dig out online, cash transactions were just about 40% of total transactions in 2012 and dropping. https://www.fastcoexist.com/3056736/what-happens-when-we-become-a-cashless-society
