Taxed to Death

Guys, I’ve just issued a cheque for my Fringe Benefit Tax (FBT as it is lovingly called by our FM)

My blood is burning that we Indian are now paying a tax on a business expense , you see I made the mistake of putting a stall at an exhibition to promote my sales. This according to our FM means that since I was spending on increasing my business I needed to pay a super tax on that on top of the load of other taxes including income tax I would pay if the exhibition did yield any results.

A friend sent me the mail below and its come at just the right time since it expresses my frustration so beautifully.


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A CA talking to his client in India :


1) Qs. : What are you doing ?


Ans. : Business.


Tax : PAY PROFESSIONAL TAX !



2) Qs. : What are you doing in Business ?


Ans. : Selling the Goods.


Tax : PAY SALES TAX !!




3) Qus. : From where are you getting Goods ?

Ans. : From other State/Abroad

Tax : PAY CENTRAL SALRES TAX, CUSTOM DUTY & OCTROI !




4) Qus. : What are you getting in Selling Goods?

Ans. : Profit.

Tax : PAY INCOME TAX !


5) Qs. : Where are you Manufacturing the Goods?

Ans. : Factory.

Tax : PAY EXCISE DUTY !


6) Qs. : Do you have Office / Warehouse/ Factory ?

Ans. : Yes

Tax : PAY MUNICIPAL & FIRE TAX !



7) Qus. : Do you have Staff ?

Ans. : Yes

Tax : PAY STAFF PROFESSIONAL TAX !


Qus. : Doing business in Millions ?

Ans. : Yes

Tax : PAY TURNOVER TAX !


9) Qus. : Are you taking out over 25,000 Cash from Bank ?

Ans. : Yes, for Salary.

Tax : PAY CASH HANDLING TAX !


10) Qus. : Where are you taking your client for Lunch & Dinner ?

Ans. : Hotel

Tax : PAY FOOD & ENTERTAINMENT TAX !


11) Qus. : Are you going Out of Station for Business ?

Ans. : Yes

Tax : PAY FRINGE BENEFIT TAX !


12) Qus. : Have you taken or given any Service/s ?

Ans. : Yes

Tax : PAY SERVICE TAX !



13) Qus. : How come you got such a Big Amount ?

Ans. : Gift on birthday.

Tax : PAY GIFT TAX !


14) Qus. : Do you have any Wealth ?

Ans. : Yes

Tax : PAY WEALTH TAX !


15) Qus. : To reduce Tension about how you will pay the tax, for entertainment, where are you going?

Ans. : Cinema or Resort.

Tax : PAY ENTERTAINMENT TAX !


16) Qus. : Have you purchased House ?

Ans. : Yes

Tax : PAY STAMP DUTY & REGISTRATION FEE !


17) Qus. : How you Travel ?

Ans. : Bus

Tax : PAY SURCHARGE !


18) Qus. : Any Additional Tax ?

Ans. : Yes

Tax : PAY EDUCATIONAL, ADDITIONAL EDUCATIONAL &SURCHARGE ON ALL THE CENTRAL GOVT.’s TAX !!!

19) Qus. : Delayed any time Paying Any Tax ?

Ans. : Yes

Tax : PAY INTEREST & PENALTY!

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After all is said and done what do you think it really leaves for us to actually spend, compare that with the potters etc of Dharavi who are now insisting that they would like to be treated differently from potters on land CAPTURED by them and on which they pay NONE of the above taxes.

Do we really wonder why people cheat on their taxes ?

Now let us consider the flip side i.e. what is done with our taxes, (see box below) It is a shame.

One of the things which makes me hang my head in shame is the latest move by the government is a fund of 270 Cr. as a relief to rape victims.

How many rape victims do you really think will benefit from this fund and where is the money coming from , from one of the many taxes you saw above.

SAY WHAT !!!! you mean to say I’m paying a rape victim compensation even though I didn’t rape her (him too nowadays).

What about the real culprit, of course hes below the poverty line and doesnt pay anything.

We have to put an end to these politicians mouthing off announcing ex gratia payments for anything from a road accident to broken bridges. From a rape to a flood.

Their solution is buy the common sucker, buy their votes so what if it adds another 1% surcharges to the load of surcharges we already have for the only people paying the taxes.

My sincere request is the next time a bridge falls down slam the penalty on the engineer responsible (instead of putting him on suspension— a euphemism for hide till people forget) and leave us poor tax payer out of the penalty.

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Salary & Govt. Concessions for a Member of Parliament (MP)



Monthly Salary : 12,000



Expense for Constitution per month : 10,000



Office expenditure per month : 14,000



Traveling concession (Rs. 8 per km) : 48,000 ( eg.For a visit from kerala to Delhi & return: 6000 km)



Daily DA TA during parliament meets : 500/day


Charge for 1 class (A/C) in train: Free (For any number of times) (All over India )

Charge for Business Class in flights : Free for 40 trips / year (With wife or P.A.)

Rent for MP hostel at Delhi : Free

Electricity costs at home : Free up to 50,000 units

Local phone call charge : Free up to 1 ,70,000 calls.

TOTAL expense for a MP [having no qualification] per year : 32,00,000 [i.e. 2.66 lakh/month]

TOTAL expense for 5 years : 1,60,00,000



For 534 MPs, the expense for 5 years : 8,54,40,00,000 (nearly 855 crores)