Where should we pay tax

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SAMEER

CHARTERED ACCOUNTANT

171 Points Posted on 09 May 2008

Dear Freinds

Disparity among the states/rurals in terms of budget allocation occures, mainly due to the reason that The companies pay their taxes at their Head offices situated at Metro Cities whereas their main revenue generation is from rural India, consequently, the Central Govt allocates major funds for development at Metros. and in this way the rural India and small cities are getting poorer and Major cities are getting richer. This is a major cause of concern; if we are serious about the overall development of the country. I invite your comments / opinions

Replies (29)

Charudatta Kulkarni

Asst Manager

67 Points Posted on 09 May 2008

I agree with u. Same case with our Co, which operates mainly in rural areas. But it is not that all the revenue comes frm rural area. And government has its own way of distributing funds to rural and urban areas,. So everybody gets its share properly. And it is fact that urban public (Indivisuals) pay more taxes than rural public. So they get more money for development. AS simple AS that.

chandra sekharan

CA Final

42 Points Posted on 13 May 2008

I also agree with u. where ever thev revenue generated it is distributed all over the country . I accept metro are developing like any nthing becoz of the infrastructure.

Rushikesh

Chartered Accountant - Manager Finance

2323 Points Posted on 13 May 2008

Hi,

Thats true!!! The taxation base i.e. the taxes also in certain cases should be levied at the place where the revenue generation activity takes place.

Instead special tax exemptions are given to backward areas; So the basis of taxation should be changed in such a way that it should only tax these entities without harming the taxpayers in the rural areas