Thursday, June 1, 2017

Banning the Sale of Cattle for Slaughter - Government has no role in Kitchen

Raw Beef Slices - Photo Courtesy: Wikipedia

Recently, Central Government through a brand-new notification made it difficult for people to sell cattle for slaughter.

The notification in question is, ‘Prevention of Cruelty to Animals (Regulation of Livestock Markets) Rules, 2017' from Ministry of Environment and Forests. As the name implies this rule have many progressive directions like,
Section 7 states, 'District Animal Market Monitoring Committee' to ensure all basic needs for animals in animal market.
Section 14 Prohibits the practices that are cruel and harmful
Section 15 offers Protection of animals from injury or unnecessary pain or suffering.
There are many more sections in this rule which will make the life of animals easy in animal market.

The controversial sections in this piece of paper is Section 22 on 'Restrictions on sale of cattle'. Subsections states that, 
b. no person shall bring a cattle to an animal market unless upon arrival he has furnished a written declaration signed by the owner of the cattle or his duly authorised agent—
(i) stating the name and address of the owner of the cattle, with a copy of the photo identification proof;
(ii) giving details of the identification of the cattle;
(iii) stating that the cattle has not been brought to market for sale for slaughter. 

In other words, one can't sell his/her cattle for slaughter.

d. where an animal has been sold and before its removal from the animal market, the Animal Market Committee shall—
(ii)take an undertaking that the animals are bought for agriculture purposes and not for slaughter;

e. the purchaser of the cattle shall –
(i) not sell the animal for purpose of slaughter;
(ii) follow the State cattle protection or preservation laws;
(iii) not sacrifice the animal for any religious purpose;
(iv) not sell the cattle to a person outside the State without the permission as per the State cattle protection or preservation laws.

(i) make sure that the purchaser is not allowed to sell the cattle for slaughter and (iv) makes the interstate trade difficult.

This in turn affects beef consumption, leather industry and export market. The question any reasonable Indian should ask is 'why'? What suddenly happened, which made the government to bring such a drastic change. Did they find suddenly that cattle are an endangered species? No. Did they find that eating beef is injurious to health? No. Did they find out that, slaughtering cattle results in ecological imbalance? Again, the answer is no. Alternately, there are a lot of people who eat beef; there is a big industry and lakhs of jobs depends on it. In addition to that, there is a huge export market as well as leather industry depend on that.

This ban raise some serious questions about the intention and extend of government's role in day to day life. Do government have the right to decide what people should eat and what not (if they are not eating endangered species or resorting to cannibalism)? I believe the answer is no.

Do government have the authority to destroy an industry - leather - without providing any reasonable explanation? Leather industry may be polluting but so as many other industries. So, pollution is not a digestible explanation.

Another explanation provided for this ban is to protect the farmers. In which way, it will affect the farmers. Just think about the situation, when the cattle are no longer giving any return for the farmer. It is very old to provide milk or do some work. In this situation, what the farmer should do? Fed the cattle for many more years without having any chance for getting any further return?  or simply let it go to the open streets? I don't think both options will be more beneficial for the farmer than selling it to slaughter house.

Well, there is also an argument that animal husbandry is a state matter and central government’s notification is an encroachment to State Government’s fiefdom. Well, state government also don’t have any role in citizen’s kitchen.

In this way government's argument, doesn't hold any water and hence the notification should be taken back.


PS: As per the wordings, ban in the sale of cattle for slaughter is applicable only in Animal Market (may not be in households). But the notification gave a very expansive definition for Animal Market.

"animal market means a market place or sale-yard or any other premises or place to which animals are brought from other places and exposed for sale or auction and includes any lairage adjoining a market or a slaughterhouse and used in connection with it and any place adjoining a market used as a parking area by visitors to the market for parking vehicles and includes animal fair and cattle pound where animals are offered or displayed for sale or auction"

Tuesday, May 2, 2017

Anyone Left in the system?

"Turkish government expanded its crackdown on dissent and free expression over the weekend, purging nearly 4,000 more public officials, blocking access to Wikipedia and banning television matchmaking shows" - NYT

More than 1,40,000 people already lost their job from public and private sectors; more then 1,500 civil groups became history since the failed coup against Erdogan last year. Looks like there is no end in sight for Great Turkish Purge. It's bad time for civil servants in Turkey. If things are going in this way, there won't be any leftists, rightists, centrists or whatever others "ists" left in Turkey - Only Erdoganists!!!

--Mumbling Mainstreet

PM started thinking and MP did it!!!

"Madhya Pradesh has become the first state in the country to formally switch to a January-December financial year format, with the state Cabinet  on Tuesday approving the proposed move. The next Budget session of the state Assembly will be held in December 2017 or January 2018, while the next financial year will start from January 2018" - Business Standard

Lightening Speed. There is no other words to describe the speed. I which MP could show the same energy in constructing the roads as well.

-- Mumbling Mainstreet

Running towards Christian Europe instead of Islamic Saudi

"During her talks with Gulf leaders, Ms. Merkel is expected to press them (Saudi Arabia) to do more to take in refugees and provide humanitarian relief for those fleeing conflicts in Muslim-majority countries. Her country has provided refuge to hundreds of thousands of people from Syria, Iraq and Afghanistan in recent years." - The Hindu

I don't think, she will be able to anything on refugee problem. However, it is quite interesting to see the pattern. Persecuted Muslims from war-torn countries from Africa and Asia are trying to get in to Christian Europe not to any Middle-East Countries.

-- Mumbling Mainstreet

Germany’s Merkel to press Saudi Arabia on refugees, rights - The Hindu

Monday, May 1, 2017

Frequently Asked Questions on GST (Goods and Services Tax) - Part VII

FAQ on GST (Goods and Services Tax) - Part I
FAQ on GST (Goods and Services Tax) - Part II
FAQ on GST (Goods and Services Tax) - Part III
FAQ on GST (Goods and Services Tax) - Part IV
FAQ on GST (Goods and Services Tax) - Part V
FAQ on GST (Goods and Services Tax) - Part VI
FAQ on GST (Goods and Services Tax) - Part VII

This Question and Answers are prepared by Apex Training Institute Under Central Board of Excise and Customs(CBEC) with some inputs from National Academy of Customs, Excise and Narcotics (NACEN).

Below mentioned Q&A are derived from above document with modifications.

89. What is IGST?

“Integrated Goods and Services Tax” (IGST) means tax levied under the IGST Act on the supply of any goods and/ or services in the course of inter-State trade or commerce.

90. What are inter-state supplies?

A supply of goods and/or services in the course of inter-State trade or commerce means any supply where the location of the supplier and the place of supply are in different States, two different union territory or in a state and union territory Further import of goods and services, supplies to SEZ units or developer, or any supply that is not an intrastate supply. (Section 7 of the IGST Act).

91. How will the Inter-State supplies of Goods and Services be taxed under GST?

IGST shall be levied and collected by Centre on inter-state supplies. IGST would be broadly CGST plus SGST and shall be levied on all inter-State taxable supplies 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. The Exporting State will transfer to the Centre the credit of SGST used in payment of IGST. The Importing dealer will claim the credit of IGST while discharging his output tax liability in his own State. The Centre will transfer to the importing State the credit of IGST used in payment of SGST. The relevant information is also submitted to the Central Agency which will act as a clearing house mechanism, verify the claims and inform the respective governments to transfer the funds.

92. How will the settlement between Centre, exporting state and importing state be done?

There would be settlement of account between the Centre and the states on two counts,

• Centre and the exporting state: The exporting state shall pay the amount equal to the ITC of SGST used by the supplier in the exporting state to the Centre.
• Centre and the importing state: The Centre shall pay the amount equal to the ITC of IGST used by a dealer for payment of SGST on Intra- state supplies.

The settlement would be on a cumulative basis for a state taking into account the details furnished by all the dealer in the settlement period. Similar settlement of amount would also be undertaken between CGST and IGST account.

93. What treatment is given to supplies made to SEZ units or developer?

Supplies to SEZ units or developer shall be zero-rated in the same manner as done for the physical exports. Supplier shall have the option to make supplies to SEZ without payment of taxes and claim refunds of input taxes on such supplies (section 16 of the IGST Act).

94. The place of supply in relation to immovable property is the location of immovable property. Suppose a road is constructed from Delhi to Mumbai covering multiple states. What will be the place of supply?

Where the immovable property is located in more than one State, the supply of service shall be treated as made in each of the States in proportion to the value for services separately collected or determined, in terms of the contract or agreement entered into in this regard or, in the absence of such contract or agreement, on such other reasonable basis as may be prescribed in this behalf.
(The Explanation clause to section 12(3) of the IGST Act, for domestic supplies)

95. What would be the place of supply of services provided for organising an event, say, IPL cricket series which is held in multiple states?

In the case of an event, if the recipient of service is registered, the place of supply of services for organising the event shall be the location of such person.

However, if the recipient is not registered, the place of supply shall be the place where the event is held. Since the event is being held in multiple states and a consolidated amount is charged for such services, the place of supply shall be taken as being in each state in proportion to the value of services so provided in each state.
(The Explanation clause to section 12(7) of the IGST Act)

96. What will be the place of supply of goods services by way of transportation of goods, including mail or courier?

In the case of domestic supply: If the recipient is registered, the location of such person shall be the place of supply.
However, if the recipient is not registered, the place of supply shall be the place where the goods are handed over for transportation
(section 12 of the IGST Act)

For international supplies: The place of supply of transport services, other than the courier services, shall be the destination of goods. For courier, the place of supply of services is where goods are handed over to the courier. However, if the courier services are performed even partially in India, the place of supply shall be deemed as India
(section 13(3),13(6) and 13(9) of the IGST Act).

97. What will be the place of supply of passenger transportation service, if a person travels from Mumbai to Delhi and back to Mumbai?

If the person is registered, the place of supply shall be the location of the recipient. If the person is not registered, the place of supply for the forward journey from Mumbai to Delhi shall be Mumbai, the place where he embarks.

However, for the return journey, the place of supply shall be Delhi as the return journey has to be treated as a separate journey.
(The Explanation clause to section 12(9) of the IGST Act)

98. What is GSTN?

Goods and Services Tax Network (GSTN) is a not-for-profit, a non-government company promoted jointly by the Central and State Governments, which will provide shared IT infrastructure and services to both central and state governments including taxpayers and other stakeholders. The Frontend services of Registration, Returns, Payments, etc. to all taxpayers will be provided by GSTN. It will be the interface between the government and the taxpayers.

99. What services will be rendered by GSTN?

GSTN will render the following services through the Common GST Portal:

(a) Registration (including existing taxpayer migration, a process which began on 8th Nov 2016);
(b) Payment management including payment Gateways and integration with banking systems;
(c) Return filing and processing;
(d) Taxpayer management, including account management, notifications, information, and status tracking;
(e) Tax authority account and ledger Management;
(f) Computation of settlement (including  IGST Settlement) between the Centre and States; Clearinghouse for IGST;
(g) Processing and reconciliation of GST on import and integration with EDI systems of Customs;
(h) MIS including need-based information and business intelligence;
(i) Maintenance of interfaces between the Common GST Portal and tax administration systems;
(j) Provide training to stakeholders;
(k) Provide Analytics and Business Intelligence to tax authorities; and
(l) Carry out research and study best practices.


For full set please visit