•Shops in Bazaars which make sales in
several thousands in single day don’t pay tax. They don’t give bill also they
just take cash. They don’t use POS also. There are bazaars and market place in
all cities and towns. Bazaars sell electronic items, mobile accessories, toys,
clothes, books, household items, food, etc,.
•Auto & Taxi Drivers don’t pay tax or don’t give bill. They earn over 10,000 easily per day but don’t audit or pay taxes for their earnings. All their earnings are entirely in cash so nobody can trace. No system to pay bills.
•Many retail shops which sell food items, household items don’t have POS but have turn over in several thousands. They don’t have proper auditing system also. Many sweets, bakery shops, retail shops don’t have auditing procedures and no tax. Retail shops which sell vegetables, fruits, packed food. Some of the shops which have computerisation also have methods to hide their sales.
•Govt & Income Tax Department must create a e-Gov project to update data from sales to income tax servers by API (web service) to update sales data every hour to Income Tax department server of respective state and copy to centralised server by end of day. This will help Income Tax to monitor sales remotely & if a income tax official buys a product and if they same value is not reflected in server then Income tax department can easily find. The salary payment can also be intimated with bank records so Income Tax department can find out if major flaws in invoice or billing can be avoided
•Bazaar shops which don’t have POS must be given POS for small scale business. The sales of products in platforms is illegal but Govt must ask those who want to continue to do business in platforms to procure POS from Govt authorised banks procured in large number and bank accounts opened for those business. Those who fail to comply will lose the space in the platform and will be closed immediately. The POS will have prevent large scale tax fraud and people will start paying with bank cards. All those who have shops space and still don’t give bill or POS must be asked to pay fines and given 3 months to rectify and spend money to get POS from banks. Computerisation of all shops in India must be done by giving 6 months time and repeated raids by IT department in bazaar areas till issue is resolved. On the spot fines must be made for those who fail to pay. The shops should not be sealed for a period of 1 year till the movement picks up and the revenue increases to Govt from these sources. Govt non crackdown on non tax paying shops and business has lead to large percolation of black money in non corporate sector.
•A small shop in unmarked area for business which sells tea, pan, cigarettes, snacks more money than salaried employee. The govt and Income Tax have been mute spectators focussing only on high paying corporates so they get cut or bribe from large frauds and don’t focus on small issues like these. Actually if each shop evades 10,000 in taxes every year annually several billions of revenue is lost which is more than enough to run Govt infra operations with ease.
•Govt must handle this movement effectively by balancing areas to raid or advising shops on steps to take to prevent raids. Income Tax department can start with following a) go to all bazaars and inform shops to have facilities like Bill payment with book keeping b) Ask all shops to have POS sale devices and govt must make available POS available at cheap cost and ask banks to reduce charges. Interact with shops and know why they don’t use POS and solve those issues c) Ask shops to computerize which make sales on a daily basis of over 10,000 even though they might be in non urban areas d) Ask them to have auditors to review accounts and pay taxes regularly e) Then bring e-Gov project to send data of all computerised sales to income tax servers to see how much tax is paid by all and verify data of sales & tax paid. f) Make easy understanding of existing IT rules and provide email id to ask questions and get clarified on what steps to take when starting business and what clauses to understand g) IT department help with auditors to pay taxes and book keeping procedures to prevent raids. Technology is the way to overcome tax loopholes.
•Auto & Taxi Drivers don’t pay tax or don’t give bill. They earn over 10,000 easily per day but don’t audit or pay taxes for their earnings. All their earnings are entirely in cash so nobody can trace. No system to pay bills.
•Many retail shops which sell food items, household items don’t have POS but have turn over in several thousands. They don’t have proper auditing system also. Many sweets, bakery shops, retail shops don’t have auditing procedures and no tax. Retail shops which sell vegetables, fruits, packed food. Some of the shops which have computerisation also have methods to hide their sales.
•Govt & Income Tax Department must create a e-Gov project to update data from sales to income tax servers by API (web service) to update sales data every hour to Income Tax department server of respective state and copy to centralised server by end of day. This will help Income Tax to monitor sales remotely & if a income tax official buys a product and if they same value is not reflected in server then Income tax department can easily find. The salary payment can also be intimated with bank records so Income Tax department can find out if major flaws in invoice or billing can be avoided
•Bazaar shops which don’t have POS must be given POS for small scale business. The sales of products in platforms is illegal but Govt must ask those who want to continue to do business in platforms to procure POS from Govt authorised banks procured in large number and bank accounts opened for those business. Those who fail to comply will lose the space in the platform and will be closed immediately. The POS will have prevent large scale tax fraud and people will start paying with bank cards. All those who have shops space and still don’t give bill or POS must be asked to pay fines and given 3 months to rectify and spend money to get POS from banks. Computerisation of all shops in India must be done by giving 6 months time and repeated raids by IT department in bazaar areas till issue is resolved. On the spot fines must be made for those who fail to pay. The shops should not be sealed for a period of 1 year till the movement picks up and the revenue increases to Govt from these sources. Govt non crackdown on non tax paying shops and business has lead to large percolation of black money in non corporate sector.
•A small shop in unmarked area for business which sells tea, pan, cigarettes, snacks more money than salaried employee. The govt and Income Tax have been mute spectators focussing only on high paying corporates so they get cut or bribe from large frauds and don’t focus on small issues like these. Actually if each shop evades 10,000 in taxes every year annually several billions of revenue is lost which is more than enough to run Govt infra operations with ease.
•Govt must handle this movement effectively by balancing areas to raid or advising shops on steps to take to prevent raids. Income Tax department can start with following a) go to all bazaars and inform shops to have facilities like Bill payment with book keeping b) Ask all shops to have POS sale devices and govt must make available POS available at cheap cost and ask banks to reduce charges. Interact with shops and know why they don’t use POS and solve those issues c) Ask shops to computerize which make sales on a daily basis of over 10,000 even though they might be in non urban areas d) Ask them to have auditors to review accounts and pay taxes regularly e) Then bring e-Gov project to send data of all computerised sales to income tax servers to see how much tax is paid by all and verify data of sales & tax paid. f) Make easy understanding of existing IT rules and provide email id to ask questions and get clarified on what steps to take when starting business and what clauses to understand g) IT department help with auditors to pay taxes and book keeping procedures to prevent raids. Technology is the way to overcome tax loopholes.
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