Raman Jokhakar, editor of the journal published by Bombay Chartered Accountants Society identified some areas which need improvement.
Shops and Establishments Act, 2017, should be done away with or curtailed, he pointed out. The registration threshold is quite low, and rules framed under it such as on hours of operation, are mostly not enforceable, he said.
"Take the example of regulating things like work hours for women, holidays and leaves, overtime, a lot of which are redundant or require revision. For example, a facility with more than 50 workers should have a crèche for children. Having numerous laws puts compliance burden especially when monitored by multiple authorities," Jokhakar said.
When India is mulling housing for all, he pointed out that the way stamp duty credit is not given, it increases the load on common people. The stamp duty payable on a sale should be reduced as it is already paid on the earlier transaction relating to that property. "For instance, if a house is purchased for 10 lakhs and stamp duty paid for it is say 50,000, then when the same house is sold after 10 years for say 25 lakhs, the stamp duty already paid on that property should be adjusted."
Jokhakar also pointed out specific issues with the state's Real Estate (Regulation and Development) Act or RERA. The Act requires that a builder maintains a separate account for every project and deposit 70% of the money received from buyers in this account for construction and land cost. The withdrawal from this account, as per the Act, is to be proportionate to the percentage completion of the project. The state permits withdrawal of entire land cost, leaving in a large number of cases hardly any amount to be utilized for further construction.
Why should the government collect tax from those employed through 'professional tax'? Today most people pay between Rs.175 and Rs. 300. This tax only increases the burden on the common man and compliance burden on the employer.
—Raman Jokhakar, Editor, Journal, Bombay Chartered Accountants Society
The legislations - Maharashtra Shops and Establishment Act, 2017 and Maharashtra State Tax on Professions, Trades, Calling and Employments Act. 1975 and the levies under them should be scrapped. This will make the state of more attractive and the revenue loss will be more than recouped from new investments or increase in the business activity and increase the ease of doing business.
—Manish Sampat, president, Bombay Chartered Accountants Society
TAX INCREASES BURDEN
Experts also point out specific issues with RERA
Suggestions
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Stamp duty concessions be given to home buyer
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Professional tax should be done away with
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| Shop and Establishment Act must be curtailed |
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