VAT on RESIDENTIAL HOMES and PROPERTY - The Hot Topic in PUNE REAL ESTATE REALTY SCENE

Click the link below and read an informative blog post by Ravi Karandeekar on the VAT issue currently the hot topic in Pune Real Estate especially for property owners and home buyers.

http://ravikarandeekarsblog.blogspot.in/2012/10/Pune-property-buyers-fight-against-builders-and-win-compensation.html

It is sad that property buyers are always at the receiving end because of their ignorance. 

It is surprising that property prices in Pune are not going down despite fall in demand and oversupply of new homes leading to large inventory overhang.

PUNE REAL ESTATE - THE VAT PROBLEM FOR EXISTING HOME OWNERS

Here is the link to an interesting blog post on the VAT problem for existing home owners of Pune. 

http://ravikarandeekarsblog.blogspot.in/2012/10/Maharashtra-Value-Added-Tax-VAT-On-Property-Bought-Between-2006-and-2010-1.html

Click the link above and read the article regarding how to tackle the VAT problem.

Besides this article, you can read many more topical articles and property buying tips on Ravi Karandeekar's Pune Real Estate Blog  at  http://ravikarandeekarsblog.blogspot.in/

AAM AADMI and KHAAS AADMI - आम आदमी और ख़ास आदमी -

AAM AADMI and KHAAS AADMI

आम आदमी और ख़ास आदमी 

The TAXPAYER and The FREELOADER

Musings

By

VIKRAM KARVE

There are two types of citizens – the aam aadmi and the khaas aadmi.

How do you find out who is an aam aadmi and who is a khaas aadmi?

It is simple. Take the recent example of petrol price rise. If you are affected by the petrol price rise then you are an aam aadmi. If you are not affected by the petrol price rise, or for that matter a diesel price rise or any price rise, then you are a khaas aadmi.

The aam aadmi pays taxes. The khaas aadmi freeloads on those taxes.

The khaas aadmi enjoys the privilege of freeloading on the aam aadmi.

Remember, it is not the middle class alone who pays taxes. Do not think that those who pay income tax are the only ones who are being taxed. Even the poorest of the poor pays taxes because you have to pay all types of taxes (central, state, excise, duties, sales tax , service tax, cess, VAT, octroi) – yes, you are taxed for anything you buy or use, even items of daily living.

A portion these taxes paid by the TAXPAYERS are used to finance the opulent lifestyles of the FREELOADERS.

Since the fuel price rise is the topic of the day, let me give some examples of freeloaders in this context.

I remember a few years ago when petrol and diesel prices were raised, a friend of mine was unperturbed. He said that he couldn’t be bothered about fuel prices since he had an official car at this disposal. Of course, official cars are meant for official duties only, but then you know what goes on and how these vehicles are misused for personal and family use. In fact, I know of another guy who sold off his personal car the moment he was promoted and he proudly stated that since he would be entitled to an official car till the end of his service career he won’t need a personal car till he retired.

A vehicle is only one thing – you will be amazed at the number of things provided free or at subsidized rates to these freeloaders. Some smart freeloaders manage to continue enjoying largesse even after retirement. Some never retire.

Before Independence, the British were the rulers and we were the ruled. The British may have gone away long back but the “Raj” continues to flourish – only now there are new sets of rulers and, despite the so-called modernisation and liberalisation, the “feudal” structure continues to burgeon. In this set-up, the aam aadmi is taxed in order to finance the khaas aadmi. In fact the numbers and types of freeloaders have proliferated at an amazing rate and their “on-the-house” lifestyles have become even more lavish and profligate.

And don’t think that freeloaders exist only in the political class and bureaucracy. If you look at the corporate sector you will be amazed to see the fantastic compensation packages and mind-boggling “on-the-house” perks and facilities given to some of the top management.

You will be even more surprised when you see this happening even in those companies which are making losses and, maybe, even are on the verge of bankruptcy.  Some types of industries “freeload” too as they have been given huge tax exemptions and concessions and the common taxpayer has to bear the burden.

Freeloading has become a way of life, a part of our culture – each and everyone wants to freeload and, given an opportunity, everyone tries to freeload. There are many who think that once they have attained a certain position it becomes their birthright to freeload. It is mind-blowing how the sheer numbers and types of freeloaders are increasing and snowballing at an alarming rate. India is a poor country and can ill-afford such profligacy and extravagance by these freeloaders.

I once told a freeloader colleague: “If you consume something, someone has to pay for it. There is no free lunch. So if you have a meal – either you pay for it or someone else has to pay for it.”

In the same way, what the khaas aadmi or freeloaders “consume”, the hapless aam aadmi or taxpayer has to pay for. Has anyone computed the CTC (“cost to company”) being incurred on these freeloaders?

I think one of the ways to resuscitate the economy is to eliminate freeloading and inculcate a sense of thrift and frugality and enforce financial prudence in the powers-that-be. This has got to start from the top since it is best to lead by example. Yes, good leadership implements a top-down approach for change management.

Can we hope to see the crème-de-la-crème freeloaders eschew freeloading and start walking or cycling down to office or travelling by public transport. Can we hope to see the powers-that-be reduce their perks and privileges and learn to more parsimonious and financially honest. Will they pay for what they consume? Will they adopt a High Thinking and Simple Living lifestyle? Will they follow the example set by some of our earlier leaders, freedom fighters who gave up everything for the nation. Will they search their conscience and keep national interest above self interest?

But tell me, why should the freeloaders bother? Things like price rise and corruption will not be important issues during elections as long as we cast our votes based on factors like caste, religion, community and as “vote banks”. So in the end it is we, the aam aadmi, who have only ourselves to blame for the proliferation and extravagance of the khaas aadmi, the thriving freeloaders who will continue to flourish at the aam aadmi’s expense and all we can do is endure in silence and watch on helplessly. 

Whether you are a आम आदमी (aam aadmi) or a ख़ास आदमी (khaas aadmi) - please comment and let us know your views.

PRICE RISE The Most Important Issue For The Common Man

PRICE RISE

The Most Important Issue For The Common Man

While Scams, Political Slugfests and the Anti-Corruption Movement continue to hog the headlines, both on TV and in the print media, no one seems to be concerned about the huge price rise in the last few months. During the last one year the price of milk has almost doubled. Today in Pune a litre of milk costs Rs. 40 (which was unimaginable a few years ago). They quietly continue to raise the price of milk by a rupee or two every few days and no one seems to be bothered about it. Every single item of food required for daily living has gone up. Whether it is vegetables, fruits, medicines, transportation, in fact, all essential items for daily living, the unprecedented price rise seems to be irreversible – once the price goes up it never comes down. The price of petrol has also almost doubled during the last one year and though international crude prices have fallen petrol prices are not being reduced. Even an unpretentious cup of tea has reached double digit figures and it has become very costly to eat a simple meal in modest restaurants and roadside eateries.

It is sad that no one seems be doing anything to control inflation and stop the unprecedented price rise which is affecting every citizen of this country.   

Of course, a few things like Electronic Goods (Laptops, for example) have become cheaper, but then these are exceptions and are due to global trends as most of these items are imported. Some things like diesel and gas are subsidised. I wonder why they don’t subsidise milk and other essential commodities and food items.

And there is another curious thing I observe during my walks in Pune. Seeing the ever-increasing crowds in liquor shops and bars, it seems that booze has not been affected by this unprecedented price rise, maybe a peg of liquor is more affordable than a glass of milk, or maybe drowning one’s sorrows in drink is the best way to beat inflation by remaining oblivious about it. You get so drunk that you don’t feel hungry – of course, your health be dammed. The consumption of tobacco, smoking cigarettes and eating gutka, also continues to increase day by day. I feel it would be a good idea to introduce a special tax on these intoxicants, like liquor and tobacco, and use this amount to subsidise Milk – maybe you can call it “Milk Cess” so that every time you consume things detrimental to your health, like tobacco or alcohol, whenever you drink booze, you think of a glass of healthy Milk.   

Seriously, I hope they do something to contain, and reverse, this unprecedented price rise and alleviate the distress of the common citizen.