Sunday, February 7, 2010

De$t!Ny

To explain this concept we have to understand what destiny is:


•The popular western view is that we are in control of our lives and everything that happens to us is as a result of our own choice.

•On the other hand the popular eastern view is that every thing that happens to us is not under our control and we are nothing but puppets in a preordained plan.

Many events in our lives are destined, beginning with our birth and the family that we are born into.

According to the law of Karma every positive deed generates a ‘MERIT’ while every negative deed generates a ‘DEMERIT’ or a sin. Subsequently one has to reap the results of one’s actions. Whenever one does a good deed to others, it is bound to give a POSITIVE return (in the form of some happiness), apart from a simple thank you from that person! Whenever one inflicts harm, it is bound to give NEGATIVE return in the form of sorrow in some form. It cannot be undone by a simple "SORRY"!!!

The law of Karma is something like Newton’s third law of motion, which states, For every action there is an equal and opposite reaction’.

Throughout our lives we are either settling an old account or creating a new one. If the account cannot be settled in this birth it is carried over to the next. We are not consciously aware of the give-and-take accounts generated in our previous births. According to the science of Spirituality, most of our family members & people around us are people with whom we have positive or negative accounts from previous births. The reason for this is that one has to be in the proximity of the other person to be able to experience pleasure or pain. So we see how Spirituality can be useful to even those of us who have absolutely no spiritual aspirations what so ever and only wish to be immersed in worldly pursuits. Even for those worldly relations to be fruitful they need to be insulated from destiny.


Examples of how accounts are created and settled as one’s destiny:




































If Mr.A does not settle the account by doing GOOD KARMA & increasing the positive forces in his account &but if inreturn he is still increasing the negative forces then Mr. A will be facing more problems & success will be far from him & he will suffer still all the negatives he has created is nullified by positives and would be taken rebirths till then.

There are many differences amongst living beings and even more so there are differences between animals and human beings. These differences are due to karma

What is this  KARMA---

Let me explain it by first deciding what karma is not. It is quite often the case that we find people misunderstanding the idea of karma. This is particularly true in our daily casual use of the term. We find people saying that one cannot change one’s situation because of one’s karma. In this sense, karma becomes a sort of escape. It becomes similar to predestination or fatalism. This is emphatically not the correct understanding of karma. It is possible that this misunderstanding of karma has come about because of the popular idea that we have about luck and fate. It may be for this reason that our idea of karma has become overlaid in popular thought with the notion of predestination. Karma is not fate or predestination.

If karma is not fate or predestination, then what is it?

Karma means action, means "to do".
In its most basic sense, the Law of Karma in the moral sphere teaches that similar actions will lead to similar results.

Let us take an example.

If we plant a mango seed, the plant that springs up will be a mango tree, and eventually it will bear a mango fruit. Alternatively, if we plant a Pong Pong seed, the tree that will spring up will be a Pong Pong tree and the fruit a Pong Pong.  As one sows, so shall one reap. According to one’s action, so shall be the fruit.

Similarly, in the Law of Karma, if we do a wholesome action, eventually we will get a wholesome fruit, and if we do an unwholesome action eventually we will get an unwholesome, painful result. This is what we mean when we say that causes bring about effects that are similar to the causes.

According to the scriptures, the discipline of unattached action (Nishkâma Karma) can lead to salvation of the soul. So they recommend that one should remain detached while carrying out his duties in life. As Lord Krishna said in the Bhagavad Gita: "To the man thinking about the objects (of the senses) arises attachment towards them; from attachment, arises longing; and from longing arises anger. From anger comes delusion; and from delusion loss of memory; from loss of memory, the ruin of discrimination; and on the ruin of discrimination, he perishes".

The 3 kinds of KARMA are:-
The Sathvik Karma, which is without attachment, selfless and for the benefit of others; the Rajasik Karma, which is selfish where the focus is on gains for oneself; and the Tamasik Karma, which is undertaken without heed to consequences, and is supremely selfish and savage.

According to Gandhi, the tamasik works in a mechanic fashion, the rajasik drives too many horses, is restless and always doing something or other, and the satvik works with peace in mind.

Friday, January 15, 2010

Overview of Goods & Service Tax (GST)

In the present tax structure in India, there is a multiplicity of taxes of Goods & Services.
Excise Duty on Manufacture , Customs Duty on Imports/Exports, and Service Tax on Services are levied by Central Government while Sales Tax (State Vat), Entry Tax/Octroi and duty on liquor are levied by State Government.
Such multiplicity of taxes mistates the tax structure and increases complexities and reforms in taxes are course of continuous process.

GST ( Goods and Service Tax) is a logical consequence of State Vat.


Why GST?

These are certain shortcomings in the structure of VAT both at the Central and at the State level.
  • Non-inclusion of several Central taxes in the overall framework of CENVAT such as additional customs duty, surcharges.
  • No step has yet been taken to capture the value-added chain in the distribution trade below the manufacturing level.
  • Luxury tax, entertainment tax, etc., and yet not subsumed in the VAT.
  • CENVAT load on the goods remains included in the value of goods to be taxed under State VAT, and contributing to that extent a cascading effect.

Introduction of GST at the Central level
    • Include comprehensively more indirect Central taxes and integrate goods and service taxes for the purpose of set-off relief, but may also lead to revenue gain for the Centre through widening of the dealer base by capturing value addition in the distributive trade and increased compliance.
Introduction of GST at the State level
    • Both the cascading effects of CENVAT and service tax are removed with set-off, and a continuous chain of set-off from the original producer’s point and service provider’s point upto the retailer’s level is established which reduces the burden of all cascading effects.

 General Outline:-
  • Harmonious structure of rates.
  • GST will be on supply of Goods & Services - Concept of Sale of Goods , Manufature & Provission of Services will Disappear.
  • Consumption based tax is retained in GST.
  • There wil be no distinction between Goods & Sevices.
  • There will be a DUAL Model :-
    • SGST - State GST.
    • CGST - Central GST.
  • The Central GST and State GST are to be paid to the accounts of the Centre and the States separately.
  • Input tax credit (ITC) for the Central GST and could be utilized only against the payment of Central GST. The same principle will be applicable for the State GST. No Cross utilization between State & Centre and Excess Credit is not Refunded.
  • Administration of the Central GST to theCentre and for State GST to the States would be given.
  • SGST Thresh hold Limit = gross annual turnover of Rs.10 lakh both for goods and services for all the States and Union Territories.
  • CGST Thresh hold Limit = Rs.1.5 crore
  • Following will be paying only SGST; its an option for them to pay IGST to remail in value chain. CGST will be EXEMPT.
    • Small Manufactures = Rs.1.5Cr.
    • Small Traders =  Rs.50L.
    • Small Service Providers = Rs.(30-40L) Not decided
Note:- {It may be mentioned that even now there is a separate threshold of services (Rs. 10 lakh) and goods (Rs. 1.5 crore) in the Service Tax and CENVAT}.
  • Compensation for the States where lower threshold had prevailed in the VAT regime.
  • In case of Inter- State Sale /Stock Transfer - IGST will Prevail.
  • Destination Principle as in VAT will continue to prevail in GST also.
  • Exports wouls be Zero Rated.
  • Both CGST & SGST will be levied on Imports.
  • The taxpayer would need to submit periodical returns.
  • Each taxpayer would be allotted a PAN-linked taxpayer identification number with a total of 13/15 digits.
  • GST will be on all Goods & Services excluding some exemptions and exclusions.
Taxes which are SUBSUMED
Following Central Taxes should be subsumed under the Goods and Services Tax:
    • Central Excise Duty.
    • Additional Excise Duties.
    • The Excise Duty levied under the Medicinal and Toiletries Preparation Act.
    • Service Tax.
    • Additional Customs Duty, commonly known as Countervailing Duty (CVD).
    • Special Additional Duty of Customs - 4% (SAD).
    • Surcharges and Cesses.

 Following State taxes and levies would be subsumed under GST:
    • VAT / Sales tax
    • Entertainment tax (unless it is levied by the local bodies).
    • Luxury tax
    • Taxes on lottery, betting and gambling.
    • State Cesses and Surcharges in so far as they relate to supply of goods and services.
    • Entry tax not in lieu of Octroi.
Some EXEMPTIONS / EXCLUSIONS:-
    • PURCHASE TAX will be allowed on some goods in some states which are producing states of specified commodities like agricultural products , minerals.
    • ALCOHALIC BEVERAGES would be kept out of the purview of GST.
    • TOBACCO would be subjected to GST with ITC. Centre may be allowed to levy excise duty on tobacco products over and above GST without ITC.
    • Basket of PETROLIUM PRODUCTS such as crude, motor spirit (including 21 ATF) and HSD would be kept outside GST as is the prevailing practice in India. Sales Tax could continue to be levied by the States .
    • Natural Gas is kept outside GST
Inter-State Transactions of Goods and Services

IGST Model is that Centre would levy IGST which would be CGST plus SGST on all inter-State transactions or stock transfer of goods and services.

The inter-State seller will pay IGST on value addition after adjusting available credit of IGST, CGST, and SGST on his purchases in the same order. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The Importing dealer will claim credit of IGST while discharging his output tax liability in his own State. The Central will act as an CLEARING HOUSE AGENT.

  • Small & Medium Enterprises can route their Inter State Transactions though Inter-State Trading Houses.
  • IGST can be Charged / credit of IGST can be taken only if they are Registered Dealers.
  • Credit of IGST Paid can be Utilised to Pay ---> (in same sequence)
                • IGST
                • CGST
                • SGST
  • Credit Of SGST can be utilised to pay --->  (in same sequence)
                • SGST
                • IGST
  • Credit Of CGST can be utilised to pay --->  (in same sequence)
                • SGST
                • IGST