Chanakya would disapprove this tax policy of government

This is the land where Chanakya was born. He was the most accredited schollar in the world. He had written Arthashastra which is followed all over world. But unfortunately it is all forgotten in this very country today. Tax laws have become terror for businessman. Everyday there is something new in terms of tax laws and rules. Businesses are tired and afraid of it.

Chanakya on Arthashashtra

Government should collect taxes in same manner as a bee collects honey from flowers. Government, it seems, has forgotten this principle.

Today government has subjected Indian businesses to burden of over compliances.

Specially two regulations are spoiling it right now namely GST and MCA. Latest regulation being audit trail in accounting softwares for companies. Read more here

Government should understand that to catch hold of only 2% of frauds, they can not overburden 98% of good businesses. This is breaking the relationship between businesses and government as businesses feel that government is not trusting them. International businesses are watching what is happening and they will react to it by shifting businesses away.

Today by default government is treating every business as a fraud and then business has to prove that it is not. This is not good for the psyche of business owners. Businessman are building Nation by paying taxes, giving employments, creating GDP, so they should be honoured and celebrated but instead they are being treated as thieves. This will lead to job creators being turn into job seekers. This will lead to people going back to unorganised sector.

Government is only talking about "Ease of doing Business" but in reality it is increasing the burden of compliances. Government should consult some of the business representatives before taking any decision on Compliances and understand it's implications. Gst and MCA have turn into uncontrollable wild creatures. One cannot imagine what will happen once assessments start under GST. Professionals are petrified and are taking drastic decision of leaving practice.

Compliance adds considerable amount of cost in terms of Money, Attention and Time for businesses. Today businessman is not able to run the business or focus on business and he is constantly worried only about compliances.

Recently there were unconfirmed news which government itself acknowledged that tax administration was putting pressure on businesses to adopt certain practices where tax collections can be increased. Government should take such cases very seriously as it may affect the image of the government.

Even Chartered Accountants, tax consultants, who should be happy with the additional business due to over compliance, are not in favour of more compliances.

Corporates have 1000s of Compliances. Non-corporates have few. Can government come up with statistics that due to such Compliances, Frauds in Corporates are way below as compared to Non- corporates.

Then only it is proved that these Compliances make any sense !!

Government should also get experts involved and get a survey done and try to find out how much cost and time businesses are spending on compliances.

Government should justify increasing compliances by showing numbers that frauds have come down due to these over compliances.

Government should avoid following

Government should provide this

We request government to reconsider this policy of distrusting every businessman. Government should come out with tax and compliance system which is not harsh, which is cost-efficient and effective. India should study what is happening in other countries and should do benchmarking. Make such tax system which Chanakya would have been proud of and world would follow.

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