In connection with the LTA / LTC encashment scheme
announced by the Government a few days back, I sent following E Mail to our
Policy Makers :
LTA spend linked to Consumer Spend : Is this practical ? ……[ 15 Oct 2020 ]
Therein , I raised following questions :
ISSUES :
Ø What goods / services
were purchased ( did these attract GST @ 12 % rate ? )
Ø Who ( shop / company / individual person )
was the SELLER ( full details )
Ø When was the purchase
made ( date )
Ø What was the bill amount
( with Bill Number )
Ø How was the payment made ( details of Cash –
Cheque – App payment – Digital bank transfer etc )
Ø Tabulated summary of
ALL the Bills / Payments( from today till 31 March 2021 )
QUESTIONS :
Ø How
will this work in a “ Faceless Online Tax Regime “ ?
Ø Will all these data need to be entered ONLINE ( on
IT dept portal ) – with photo-images of bills ?
Ø Will each claim get examined closely for
correctness of data furnished ?
Ø Will close examination slow down the assessments ?
Ø How will accountants ( of Private Company employers
), decide how much TDS for each claimant ?
Ø Is Company Accountant responsible to verify THREE
TIMES SPEND on Consumer Goods / Services ?
===================================================
Yesterday , Ministry officials released following “ Answers “ ( - upto you to decide
whether these cover all the
Context :
LTC cash voucher scheme for Govt
employees can be utilised through virtual market, too
The Hindu Business Line /
·
The Finance Ministry has said that government employees availing
of LTC (Leave Travel Concession) cash voucher scheme
# can procure
goods from e-commerce portals, apart from physical stores.
# Also, purchases
can be more than one.
Based on queries, the Finance Ministry has prepared an FAQ
(Frequently Asked Questions) with answers to 15 queries.
Closer look
# In case an employee has already exhausted all his leave encashment for LTC,
the optional scheme will be
spend in accordance with the ratio as prescribed —which means three time of
fare and one time of leave encashment.
# As per the scheme, an amount up to 100 per cent leave encashment and 50 per
cent of the value of the
deemed
employee opting for the scheme.
# Now what will happen, if an employee spends only the advance amount and
makes a claim? If the reimbursable
then this would be treated as under-utilisation. However, after calculation of the
claim, balance amount will be recovered from the employee.
# Newly-joined Government employees — though entitled for three hometown
visits and one anywhere in India in
scheme, they may use any one of the LTC available in a block year.
Multiple bills
# The Ministry has clarified that multiple bills of purchase to be accepted.
However, bills should be in the name of
# Also, number of transactions may be limited to a minimum extent to avoid any
difficulty or delay. Purchase can
should be 12 per cent or more. It can be interior decoration or phone bills.
# An employee can avail the scheme in partial, i.e. of the LTC of part of eligible
family. Since this is an optional
family has not been utilised for this purpose, those members can avail subject
to extant instructions under LTC rules.
MY TAKE :
Over the past 70 years , we have improved upon the British Rule by perfecting
the art of " Convoluted Rules to Inflict Insults and Injuries to Common Citizen "
==============================================
With regards,
Hemen Parekh / hcp@RecruitGuru.com /
23 Oct 2020
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