Showing posts with label value add. Show all posts
Showing posts with label value add. Show all posts

some random musings

1) Fundamentally, we all go by our System 1  thinking - with  'perception  bias"," recency bias" and what not. All of us including the so-called Economists are basically Irrationalists.

We are all very good critics and so we want to find all the wrong reasons to blame the Government at the Centre and Modi in particular.
(E.g Some of the questions our analysts and researchers frame for fixing the blame for the pandemic deaths/distress in their families- Do you Blame Centre or State or your fate-sounds childish-no blame for China!!!)

Those who want to blame Modi often confuse others  with Pandemic induced downturn with economic policies of the Govt  , which are bad according to them.
So many of their arguments are based on their convenience and not based on any economics per se.Most of them will start by saying "Tea sellers do not know anything beyond Pakora", or "Demon led to all these economic downturns etc. with a sweeping judgmental tone".

None of them give any cogent counter narratives which can address the problems that were existing before Modi came to power.They are the people who say Indian health infra is in pathetic state and the foreign media which is already under the control of a cabal wants to put it on loudspeaker.

Modi and his Team must now manage the perception and the optics as it has its hands full with internal as well as China ,Pak induced external problems

2)I also endorse Mr.Rajnish Kumar's(former Chairman of SBI) views. But our Judicial process under IBC  which is thro NCLT court  process now is slightly different with time bound actions and  so better than regular judicial process under erstwhile DRT or Sarfaesi act. I have first hand experience in this.However still this process can be improved like by having leave restrictions/summer vacations or by introducing more courts or by two shifts operation. (You know even when judges get transferred from one bench to another, some of them either refuse to take the trasnfer or delay the joining date which becomes very frustrating for the parties involved) Now atleast judges think twice about giving adjournments which used to happen at the drop of a hat in regular courts incl. HC. Even Chanakya in his Arthashashtra had talked about restricting no. of "vaidhas" based on his logical reasoning.

Now Judicial /Court reforms and Police reforms have to be concentrated upon by Govt.

 "(Adjournments.) The plaintiff shall (‘rejoin’) reply soon after the defendant has answered the questions at issue. Else he shall be guilty of parokta, for the plaintiff knows the determining factors of the case. But the defendant does not do so. The defendant may be allowed three or seven nights to prepare his defence. If he is not ready with his defence within that time, he shall be punished with a fine ranging from 3 to 12 panas. If he does not answer even after three fortnights, he shall be fined for parokta, and the plaintiff shall recover out of the defendant's property the amount of the case. But if the plaintiff sues for a mere return of gratitude (pratyupakarana), then no (decree shall be passed). The same punishment shall be meted out to such of the defendants as fail in their defence. If the plaintiff fails to prove his case, he shall (also) be guilty of parokta. If he fails to substantiate his case against a dead or diseased defendant, he shall pay a fine and perform the (funeral) ceremonies of the defendant, as determined by the witnesses. If he proves his case, he may be permitted to take possession of the property hypothecated to him. But if he is not a Bráhman, he may, on his failure to prove his case, be caused to perform such ceremonials as drive out demons (rakshoghna rakshitakam.)  "

This is the extract from Arthashastra -see the logical reasoning that plaintaiff knows the determining factors and so if he asks for adjournment it will not be given lightly...

 3)is there any database where the following Details are available :1)how many Govt cos.in Central and States which r private limited cos ,without need for Independent Directors,no need for Secretarial Audit..For eg I hear TASMAC in TN is one such private limited co.2)how many Retd IAS,IPS etc r functioning as Independent Directors in Govt cos both Central and State( is this crudely called incest).3) How much Unsecured loans given by PSUs to such Private limited Govt cos.For eg.TASMAc is believed to have taken huge Unsecured loans from Indian Bank others for more than Rs1000cr.Any database?


4)I am not too sure about the GST impact on the Vaccine value chain, but in a Value Added tax without an avenue to adjust the input tax credit , it will only add to the cost and push up the final landed cost.But as you rightly said, it is not "good optics" in the pandemic situation when States clamour for zero taxing vaccines without a rhyme or logic. Probably this will help improve the ties with States.

There is one another way also- Govt can say that the Vaccine GST at the final stage(single point i.e end of the value add chain), will be totally borne by the Govt out of an increase in Health and Education cess on the highest slab income taxpayers. This can be made revenue neutral. or charge 0.01% GST inorder to minimise the tax impact without disturbing the input credit chain. In fact, Zero GST or total exemption from GST is anethema to any Value Add Tax chain. It can be 1% or less than that ,but not ZERO.

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