Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Thursday 22 October 2020

Wait for further Clarifications !


 

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 questions raised in my email ) :

 


 

Context :

LTC cash voucher scheme for Govt employees can be utilised through virtual market, too

The Hindu Business Line / 22 Oct 2020

·           

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 available to him. However, he/she will need to

    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 fare is to be paid as an advance to the

    employee opting for the scheme.

 

    

# Now what will happen, if an employee spends only the advance amount and

   makes a claim? If the reimbursable amount is less than the advance withdrawn,

   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  a block of 4 years — if they are availing this

   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 the employee.

   

# Also, number of transactions may be limited to a minimum extent to avoid any

   difficulty or delay. Purchase can  be of any good or services provided rate of GST

   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 scheme, if the LTC of fare of any member of the

     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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