Out of logic; out of control

Let us see:

E-Commerce Marketing companies’ marketing expenditure and discounts should be capitalised and not deducted from business income. Mercifully, rejected by the Appellate Tribunal. [Link]

But, the Revenue department was willing to treat loan waivers as business income and tax them. Supreme Court has ruled against it. [Link]

The Income Tax Department asks banks to pay service tax (now GST) on free services, retrospectively since 2012. Some bankers have called it ‘frivolous’ demand. Quite. But, a lot worse than that. This boggles the mind for several reasons. This reveals a perverse and cynical logic, at one level. At another level, it is complete lack of coordination and harmony between different departments of the same Ministry. Very worrying in more ways than one. [Link]

No wonder, India’s Business Optimism Index is at its lowest since 2014 and that India’s ranking has slipped to the sixth place. How will there be a capex cycle? [Link]

 

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