HOW TAX REVENUE WILL BE MULTIFOLDED BY DEBIT CARD WITHOUT PAPER CURRENCY

HOW TAX REVENUE WILL BE MULTIFOLDED BY DEBIT CARD WITHOUT PAPER CURRENCY
Read the Concept – Debit Card without Paper Currency
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Central and State Governments will get revenue in the form of taxes, duties, levies, etc. for running government machinery to implement government schemes and programmes. Taxes may be in different percentages on sales or exports/imports or services or others. You can call it income tax, excise, customs, service tax, sales tax, etc. These taxes are paid after the transactions happened or occurred. Taxes may be paid in advance also like income tax.
There are many loopholes to avoid taxes by Sellers and tax payers. Those are like, not declaring the real transactions, omitting many transactions, reducing the transaction values and numbers, bartering transactions without showing sales and purchases. India with 1.2 billion population, has many crores of small vendors and shops without paying tax after collecting tax from customers. For example, Small Provisional Shop, he will pay tax on Rs.500 to Rs.1000 of daily sales to Government. In real, actually the daily sales will be Rs.5000 to Rs.10000. He will not pay tax to the government but he collected all taxes from customers by selling goods at MRP rates. In a genuine Catering transaction, Hotel Caterer has collected Rs. 5 lakhs from one marriage transaction. Caterer will collect 10.3% i.e. Rs. 51,500/- service tax from customer and he will not pay any service tax to the government. This is one way customer loosing tax to the caterer and another way government will lose the service tax from caterer. One can go on telling how the tax avoided in different forms in all walks of life.

TAXES BEFORE DC-PC

1. Seller may exclude the transaction i.e. he will not show the selling transaction and buying transaction as well. Seller declares that there is no buying transaction and selling transaction and there is no tax payment but he will get margin of profits from these transactions. There is a big tax revenue loss to the governments due to this kind of transactions.

2. Taxes will be paid on nominal values as seller will decide the sales and taxes. Seller will decide based on his transactions and how much he wants to pay as tax to the Government. He will manage the tax authorities by paying some or little bribes at the time of inspections and assessments of sales tax and income tax. Seller will not give bill or invoice to the customer(s) or sometimes he will give bill/invoice for tax purposes which cannot be avoided.

3. Sales are not measured or calculated by any inspection agency in real since it is daily affair transactions. They are just declared by seller and certified by Chartered Accountant. There are so many transactions will out bill for the sales and there are so many transactions without bill for purchases.

4. Local governments like panchayat or municipality or corporation will not get professional tax from the employees. This is the biggest problem to get professional tax from each and every employee. There is no chance to cut the professional tax from monthly salary since it is not accounted and employee will not pay professional tax to municipal office or corporation office or local government. It is very difficult for local bodies to collect the professional tax because of less staff and unorganized employees everywhere which is not possible to identify them. Getting tax is very difficult from them.

5. State Governments will not get real taxes, duties, levies, etc. from real selling transactions from all customers. Taxes like State’s Sales Tax (Commercial tax), State Excise, duties, levies, etc. will be levied on sellers’declared transactions or inspected transactions but not real transactions.

6. Central Government, at present, will get income tax from government employees (major portion of income tax) and there are so many income tax evaders not only from business people but from agriculturalists.

TAXES AFTER DC-PC

All sellers whether they are big or small or little, will be given Business Account from the Banks and all business activities and transactions will be done through this business account only. Business transactions should not be done via any personal account and if anybody do business transaction in personal account, he will be penalized for that. These are separate accounts and taxes will be cut automatically when transaction happened. Fixed or Actual percentage will be cut on the transaction wherever and whenever it occurred. Taxes after cutting from these accounts will be credited to the Government exchequer account automatically.

• There is no possibility of hiding any transaction if it is accounted in money terms with the bank and seller cannot escape from any buying and selling transaction, when transaction occurred, automatically tax will be cut from the transaction amount and directly it will go to government account. This is instant tax payment to the government for real transaction whether seller is really big or small or little. Seller may play a role of broker when the selling transaction occurred temporarily to avoid both purchase and selling transactions and sales will be occurred from the wholesaler. He cannot play long time like broker at his premises for both buying and selling transactions to avoid tax payment to the government.

• Transactions are real and tax will be cut on each and every transaction instantly whether seller gives bill/invoice to the customer(s). Seller will give bill/invoice automatically to the customer(s) since it is accounted. Seller will not hide any transaction of selling or buying since it is accounted with bank.

• Fixed percentage say 10 percent of tax will be paid instantly on sales, the rest of amount of tax will be paid at the end of month, if he paid less percentage of tax. The real tax may be 10.3 percent (Service Tax) and the transaction cuts 10 percent on selling transaction and tax of 0.3 percent will be paid at the end of month. There is no nominal taxes declaration by seller on any transaction. Seller has the option to choose to pay real and actual tax which is charged to the customer for instant payment to the government.

• Each and every transaction is accounted with business account with bank and it is measured and calculated with real numbers and there is no escape from any transaction later since seller will be penalized with penalties and more rules and regulations enforced on the business.

• Local governments like panchayat or municipality or corporation with professional taxes since it is paid by the employers. At present, there is no professional tax payment from employees to the local governments. Local government will be strengthened after collecting of professional taxes and they can do more local infrastructural works for the benefit of local people. Drainage, Road, Library, Local works will be done very smoothly with our increasing the house taxes and other taxes. All employees from unorganized sectors will be paid professional tax from monthly salary from their bank accounts. This is automatic professional tax cut from the monthly salaries from all employees. Self worker or self employee will also be paid from their bank account and it will be easy. Municipality or Corporation may cut all taxes like house tax, water tax, drainage or sewage tax from the bank accounts of respected house owners accounts on monthly basis.

• Revenue from Taxes for State Government will be increased in many times because taxes will be cut from the instant transactions and directly it (money) will go to government exchequer. State Government will function very smooth way without any difficulties and it will not increase the sales tax percentages on the sales. Additional burden by state government will not be there on customers. People will not be burdened with more taxes and increased tax rates and prices.

• Central Government will get 5 to 10 times more revenue than the existing revenues since it is accounted with bank and each and every transaction can be checked in later date. Sellers will be more cautious to pay taxes since it is accounted and chance of penalty for not paying taxes.