LTA spend linked to Consumer Spend : Is this practical ?

 

 

Context :

Tax relief for private company staff too for LTA spends on consumer goods   /    15 Oct

 

Extract :

Ø  Private sector employees who opt to spend their leave travel allowance on the purchase of consumer goods, along the lines of the latest scheme unveiled for central government employees, will be eligible for tax exemption.

“Tax benefit would be available… Mechanism is being examined and a clarification would be issued shortly,” a government official told ET.

Ø  The government is keen to ensure that private-sector employees are also nudged to take advantage of the scheme that seeks to prop up consumer demand. The government expects this incentive to the private sector will generate additional consumer demand of Rs 28,000 crore.

 

Ø  One of the measures gave Central government employees an option to avail of their Leave Travel Concession ( LTC ) if they spend three times the entitlement on goods or services attracting a GST rate of 12 % or more by March 31, 2021

 

===================================================

 Dear concerned Govt Officer / Income Tax Officer ,

 

I believe there are some 4 crore tax-payers in our country

 

To be able to “ claim “ this tax exemption, each one of them would need to keep / submit following ( Online / Offline ? ) :

 

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 ?

 

 

I am sure, there are many other questions that  I have missed out – including :

 

Ø  Will this exercise end up costing more than its presumed benefits ?

Ø  Would it not have been better to just enable LTC payments WITHOUT any linkage ? Just take and do what you like !

 

With regards,

 

Hemen Parekh /  hcp@RecruitGuru.com  /  Oct 15 , 2020

 

 

 

 

Domestic workers Survey : a Non-Starter ?

 

Context :

Labour Bureau to conduct 3 surveys to gauge employment situation

 

Extract :

The government in an endeavor to understand the issues concerning special segments of labour has entrusted Labour Bureau with the task of conducting three ambitious surveys," Gangwar said

The database will enable the government to devise pragmatic solutions to improve their conditions and plan employment opportunities for them

He also informed that to collect data on domestic workers, which constitute roughly 3 per cent of the workers in our country, a first of its kind survey on domestic workers will also be carried out by Labour Bureau.

===================================================

Considering that there are 4 million domestic workers to be surveyed, “ ambitious “ seems an under-statement , if we assume that the survey has to be completed in ( say ) 4 months

How many “ surveyors “ would be needed to survey 1 million households per month ? – assuming, each such domestic worker, works in ONE household only ( they usually work part-time in 3 / 4 households , which makes the survey, very complicated , in order to eliminate duplicate counting )

Apart from that ( logistics ) , a far more relevant issue is :

In absence of an appropriate law, obliging / mandating  the householders to provide the information about the domestic worker engaged, how many “ employers “ are likely to volunteer such data ?

That would depend upon the data fields of the “ SURVEY QUESTIONNAIRE “

Now consider the likelihood of that questionnaire asking following data

===================================================

DOMESIC  WORKERS  SURVEY QUESTIONNAIRE

===================================================

[ A ]  …   EMPLOYER DATA

#  Name / Aadhar No / Address / PAN

 

[ B ] ….  “ DOMESTIC WORKERS ENGAGED “ DATA ( separately for each domestic

                worker engaged )

#   Name of worker / Aadhar No / Address / Gender / Age / Jan Dhan Account

     Number / Photo

#   Mode of hire ( direct or through some manpower supply agency )

#   Working since ( date )

#   Whether issued any formal “ appointment letter “

#   Monthly salary  /  Annual Bonus amount

#   Mode of salary payment ( Cash / Cheque / Digital transfer to bank account )

#   Number of work-hours in a day

#   Work timings

#   Lunch-break / Tea break [ whether free lunch provided ]

#   Weekly off day

#   Paid Holidays per year

#   Annual Privilege leave / Sick Leave / Casual Leave / leave without pay [

     Maternity leave in case of female workers ]

     

#   Whether Uniform supplied

#   Allowances if any ( Click “ Maid-in-India  /  10 Aug 2015 “,  for the list to be

     ticked, YES / NO )

===================================================

I am afraid, before opening the door to welcome the Surveyor, the house-holder would ask to see the questionnaire

Just a quick / cursory glance and he will say :

“ Thank you but we do not engage ANY domestic workers. My family members do all household chores “

Now you will appreciate, why I am afraid this proposed survey would become a Non-Starter !

===================================================

Could anything be done to “ motivate / incentivize “ the house-holders to enthusiastically come forward to supply the desired data ?

No solution would be without “ accompanying problems “, but would following suggestion help ?

Surveyor says :

“ Sir / Madam,

Government has just announced ( shows relevant circular from Finance Ministry ) that the total amount of money that you annually pay to your domestic servants ( by way of wages / bonuses / allowances etc ), is tax-deductible from your annual PERSONAL INCOME TAX RETURN

Of course , this exemption is conditional to your making ALL MONTHLY-ANNUAL payments , directly into the JAN DHAN ACCOUNTS of your domestic workers and subject to TDS “

===================================================

For kind attention of :

Dear Prof S P Mukherjee ( Head of Expert Committee ) / prof.mukherjee@gmail.com

Professor Rahul Mukherjee  /  rmuk@iimcal.ac.in

Professor DebasisKundu  /   kundu@iitk.ac.in

Professor Kalyan Das  /  kalyanstat@gmail.com

===================================================

With regards,

Hemen Parekh  /  hcp@RecruitGuru.com  /  13 Oct 2020

 

 

If Google must pay Publishers, Why not pay Users ?

 

 

Context :

House Lawmakers Condemn Big Tech’s ‘Monopoly Power’ and Urge Their Breakups 

 

Extract :

In a report led by Democrats, lawmakers said Apple, Amazon, Google and Facebook needed to be checked and recommended they be restructured and that antitrust laws be reformed.

The lawmakers said the companies had abused their dominant positions, setting and often dictating prices and rules for commerce, search, advertising, social networking and publishing.

 

To amend the inequities, the lawmakers recommended restoring competition by effectively breaking up the companies, emboldening the agencies that police market concentration and throwing up hurdles for the companies to acquire start-ups

===================================================

House Panel Urges Tech Giant Breakup in Plan Republicans Shunned

Extract :

The staff report’s most consequential recommendation is for Congress to consider legislation that would prevent tech companies from owning different lines of businesses, which could lead to a mandate to break them up.

To address this, the report recommends structural separation -- prohibiting a dominant platform from operating in competition with the firms dependent on it

It also calls for line-of-business restrictions, or limiting the markets in which a dominant firm can engage, similar to bans on television networks’ entering production and syndication markets.

Under congressional power, the breakups would target types of business, rather than particular companies, committee counsel told reporters on Tuesday.

=====================================================

Google must talk to French publishers about paying for their content, court says

Extract :

Google must open talks with publishers in France about paying to use their content, an appeals court confirmed on Thursday, paving the way for an industry-wide deal in the country

The ruling may reverberate outside France, as it compels Google to sit down with publishers and news agencies to find a way to remunerate them under the “neighbouring right” enshrined in revamped EU copyright rules, which allows publishers to demand a fee from online platforms for showing news snippets.

“Google’s conduct amounted to saying: I’m offering you a contract under which you give me all your rights for no remuneration,” de Silva said, with reference to the business relationship between news publishers and Alphabet’s Google.

..the French arrangement involves finding a sustainable methodology to remunerate publishers and news agencies.

The ruling confirms a decision in April by France’s competition authority, which ordered Google to negotiate with publishers and news agencies “ the remuneration due to them for any re-use of protected content ”.

===================================================

Startups plan to approach CCI against Google’s rules  { Hindustan Times / 12 Oct 2020 }

Extract :

Ø  The founders are now planning to send a written communication to both the ministry of electronics and information technology (MeitY) as well as the CCI, this week after collating views from the industry. The startup ecosystem will send a single letter to both the government and CCI, the founder said.

Ø  Last week, Mint reported that 120 Indian startup founders were looking to form an independent non-profit lobby to take on Google in India.

Ø  In an interview on Friday, Murugavel Janakiraman, founder of Matrimony.com, said the companies are looking at “ all possibilities ”, including approaching the CCI and the government.

=================================================

MY TAKE :

Ø  GAFA are American companies governed by American Laws

Ø  It is up to the American public and US Congress-Senate to decide how to control / regulate GAFA ( including AT&T type of break-up , several decades ago ). We have absolutely “ No Say “ in that

Ø  But, we [ our Lok Sabha – Rajya Sabha ], have every right to tell them,

      “ You shall pay Indian Users for using their PERSONAL / PRIVATE DATA , which you are selling to

      advertisers and making tons of money. Either you sign up to implement the following ( for which, we are

      modifying our proposed DATA PROTECTION BILL ) , or you QUIT INDIA “

 

      Digital Dividend from Demographic Data [ 4 D ]…………………..... [ 14 Feb 2019 ]

 

     SARAL ( Single  Authentic  Registration for Anywhere  Login )…[ 10 Feb 2019 ]

 

Ø  It is high time our Lawmakers muster enough courage to stand-up / speak-up for some 400 million Indian Users, whose PERSONAL DATA is being blatantly abused ( without their explicit permission ) by GAFA

 

Ø  Whereas , I have full sympathy – and support – for the cause / rights of Indian Mobile App Developers and Startups, I strongly believe that our Government focuses on the larger OWNERSHIP ISSUE of millions of Indian Users

 

Related Reading :

 

GAFA ( aka Monopoly V 2.0 ? ) ……………………………………….[ 30 Sept 2020 ]

 

A Greed-Ship named Facebook ………………………………………[ 21 Sept 2020 ]

 

Time for the Next Step ……………………………………………………[ 15 Sept 2020 ]

 

Only Answer : a Statutory Warning…………………………………[ 10 Nov 2018 ]

 

 

With regards,

Hemen Parekh / hcp@RecruitGuru.com / 12 Oct 2020

Migrant workforce = 42 Crore ( MSME + Self Employed )

 

 

Lok Sabha just recently passed “  The Social Security Code “ , whose clause 113 (2) says :

“Every eligible unorganised worker, gig worker or platform worker shall make an application for registration in such form along with such documents including Aadhaar number as may be prescribed by the Central Government and such worker shall be assigned a distinguishable number to his application.”

Source : Aadhaar-‘plus’ on anvil for migrant workforce

Extract :

Ø  The Centre is set to issue Aadhaar-linked unique registration numbers to migrant workers

 

Ø  The numbers are expected to help maintain the first-ever data base of the country’s migrant workforce,

 

Ø  Pitching for a unique number for workers, the labour standing committee pointed out that this would help the state clearly identify unorganized sector workers including migrant workers.

 

Ø  It also asked for a wider definition of migrant workers to include those who are hired through contractors, come to their place of work independently, and even long-term labourers as opposed to seasonal migrants

 

Ø  “As migrant workers move frequently, it is necessary to link their registration with Aadhaar,” said Bhartruhari Mahtab, the chairman of the standing committee of labour in parliament.

 

     [ bhartruhari.mahtab@gmail.com ]

 =================================================

Conclusion :

From the broad definition, it seems this will cover registering ALL the 120 million UNORGANIZED sector workers ( migrant or otherwise ), working in 60 million MSME + 300 million SELF EMPLOYED workers

Question :

How should Govt go about this massive exercise to REGISTER ( I suppose, ONLINE on some portal ) millions of workers MSME ? What kind of PERSONAL DATA a registering worker may need to submit ?

When In his budget speech on 01 Feb 2019 , Shri Piyush Goyal announced the , “ Pradhan  Mantri  Shram-Yogi  Maandhan Scheme “ [ Source : Budget speech of Shri Piyush Goyal on 01 Feb 2019  ] ,

 

I sent him, the following E Mail :

 

Organizing the Unorganized ……………………………………………….[ 04 Feb 2019 ]

 

Extract :

Ø  Develop the software platform for digitizing the HR related operations of MSME , through design / develop / launch of portal  www.MaanDhan.gov.in

 

Ø  Direct each of the 1.2 million operators of 3 lakh CSC [ Customer Service Centers ] to visit 50 nearby MSME and guide / help, both the workers and the MSME employer, to enroll the workers on

       www.MaanDhan.gov.in ,

by filling in the REGISTRATION FORM with the following data about each worker :

    #   Name / Contact Details / DOB / Aadhar Card No / Employee Number

       ( Each unique Employee Number will be auto-generated by a common

         Salary Payment Software, running on Web site Server )

         

   #   Employee's Jandhan Yojana Bank Account Number for salary transfer (

        DBT )

   #   Employer's Jandhan bank account / Unique Employer Number

        (  Employers will be mandated to effect the salary payments , only

         through digital bank transfer and never through CASH )

         

  #   Employee Category ( Hourly-rated / Daily-rated / Monthly-rated )

  #   Payment Frequency ( Daily – Fortnightly – Monthly )

  #   Leave provisions / PF rate / TDS rate / Allowances / Reimbursements

  #   Any other relevant data ( either about employee or of employer )

 

Each CSC operator will be assigned 50 MSME so as to cover all 60 million MSME within one year

 

      Role  of  the  MSME :

      #      To ensure that ALL of its employees ( blue collar workers or white collar

              supervisory staff ), get enrolled n the Scheme by registering 

              on www.MaanDhan.gov.in  – whether they earn less or more than Rs

              15,000 per month

              

 

            #       To effect their salary – wages payment , only through online bank

                      transfer , after deducting Rs 55 or Rs 100 from their salaries and

                     depositing these amounts in the Pension Accounts of the respective

                     employees . Hence no need for any misses !

                     

 

           Role  of the  Workers :

          #      They must not only enroll in the Scheme by registering online but 

                  they MUST download (from www.MaanDhan.gov.in web site ) ,

                  MAD mobile app on their smart phones and register their ENTRY

                  and EXIT at the work-place as explained in :

              From  BAD  to  MAD  (  01  June  2016  )

 

ADVANTAGES  of  enforcing “ From  BAD  to  MAD “:

#   For employees , no need to file a separate annual Income Tax Return

#   Direct deposit of PF / TDS amounts into bank accounts of Govt Depts

#   Direct Benefit Transfer ( DBT ) to every Employer for Stipend Subsidy ,

     based on number of total trainees / apprentices employed

#   Total number of employees in India ( category / region / industry )

    (  No more disputes re Jobs Generated each month ! )

#   Employment Density ( Industry wise / Region wise / Skill wise etc )

#   Net Employment Growth Rate ( weekly - monthly / Industry-wise )

#   Co-relation with no of persons graduating at various levels

#   Data about those Unemployed ( " Graduating " less " Employed " )

#   Overtime Statistics ( Use / Abuse )

#   Work-hour Analysis ( Ave hours / week - month )

#   Wage / Salary Rates ( Rs per hour ) - Industry wise / Region wise

     ( of great interest to Foreign Investors looking to bring down

       manufacturing costs , by outsourcing to India / manufacturing in India )

#   Compliance with labour laws / tax laws / Apprentice Act etc

#   Job Market Forecasts through BIG DATA ANALYTIC ( region / industry )

#   Demographic  Profiles of employees  ( Rural to Urban migration )

#   Per Capita Income Growth for persons using MAD app  ( MOM / YOY )

#   Changing composition between Blue Collar and White Collar employees

 

CAUTION :

  

Nothing like this has ever been attempted earlier , so it is not possible to envisage ALL the problems that Ministry / LIC will face during the course of implementation

 

Hence , as the implementation rolls out , course-corrections will become necessary , as it happened during the implementations of De-Monetization /  GST / AyushMan Bharat Scheme and now , about to happen in implementation of the E Commerce Policy

  

But , if we keep “ analyzing “ for years ( for fear of getting wrong, ) , we will remain “ paralyzed “ forever !

  

Hence, I suggest , Ministry / LIC make a beginning as follows :

  

    In the first phase , roll out the scheme for only those who are “ Employed “ in MSME

 

 Based on experience gained, roll out for the “ Self Employed “ in second phase

 

======================================================================

Dear Shri Santosh Kumar Gangwarji,

 

[ Minister for Labour / molegangwar@yahoo.com  /  Santosh.gangwar.bareilly@gmail.com ]

Let  

 “  The Social Security Code “ , clause 113 (2) “.

become the first step towards final implementation of ,  From  BAD  to  MAD

{ Make its implementation mandatory for employers who want Stipend Subsidies / other Govt benefits }

There is no better way to get comprehensive data re EMPLOYED – SELF EMPLOYED – UNEMPLOYED , in India

If in doubt, please take a look at :

MAD goes to Mandi …………………………………….[ 02 Jan 2020 ]

 

 

With regards,

Hemen Parekh  /  hcp@RecruitGuru.com  /  10  Oct  2020