Gaurav's Blog

This Blog will contains writeup of my bike rides, current affair and some general intrested topics

Wednesday, December 06, 2006

Violation of Ethics and Laws in IT companies

Most growing and popular industry for India is IT industry. India has shown a exponential increase in attracting new software companies and there by providing more jobs to people here and also adding to economic growth of country. Not only engineer and software guys many other people are getting benefits by this industry like hospitality, security agencies, builders/developers, food chains, transport services etc.
Companies are spending a lot of money on brand making and maintain its reputation among various companies. They are providing number of facilities to its employees and attract talent from market. But did you ever get time to find what is happening inside that company. These companies are spending a lot of money in infrastructure etc but still they are breaking many laws on daily basis.
Many of IT companies are using pirated software/operating systems etc in there companies. Or sometimes they purchase 10 license companies for 100 users. And there is no restriction on usage of small misc. software in that company. This practice is followed by small and mid size companies but large companies also cannot deny this. Are they doing right thing? They are eating up business of one member that too from there own family. It’s hardly matter for them in purchasing the license for them but there is no strict cyber and copyright laws in India.
I can tell you one amazing example which many companies are doing these days. On one hand whole bollywood is fighting against piracy and copy right, and on other hand software companies are violating it without any worry. A new practice on showing bollywood movies on projector on roof top or cafeteria in various companies on Friday is very much popular these days. They just hire on CD/DVD from market and show it in company to its employees. Even they don’t know that they are doing savior crime by violating the copyright act. You cannot show movie publicly without the permission of concern authority. If these companies have to show such movies then why don’t they book a theater screen on weekend for its employees? Same as licensing, they do if sometime but not every time.
If you find the security and preparations for any kind of emergency then you hardly find any good facilities in companies. They are now forming so called Disaster management committee but everybody knows how effective it is and how trained they are? And there are many other things also which they are violating.

Some proper measures and best practices need to be followed. Companies should come forward to take some good initiatives and show some responsibility. Not only for there publicity but ethically also.

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Taxation Plan of India - We are paying 50% as tax

We never realize that we are paying more than 50% of our salary as tax to govt. every year in India. Yes, that may be surprising to you but that’s true.

Currently we are paying 30% tax on our salary as income tax and 2% of education cess tax. Then we pay 12 % as service tax on our spending and 4% - 12% of VAT on various consumable and non-consumable products. Apart from this we pay other taxes also like road tax, house tax, registration charges for vehicles and home and many others in our daily living. And even after paying all these taxes we cannot use any facility provided by government for free. We pay extra money as toll tax on various roads; we pay money in railways and roadways buses etc. If we have to pay again for everything then where is that money going.

One thing is sure that whatever tax government imposes on any businessman, he will directly forward that to consumers by increasing the prices of goods. If I can remind you the figures of tax payers in India then they only summed up to 10% or may be less of total Indian population. That means 10% of people are taking up the load and paying for 100% people. I am not an economist but I feel there is no proper taxation plan in India.
If we consider the upper class of earning people then no businessman is paying full tax on whatever he is selling and there is no trap to catch them. When VAT was introduced then it was said that it is for betterment of common man and they don’t have to pay tax on same products at various levels. But do you think it is properly implemented?
Now if we consider the so call poor people who are doing business then they are not paying single penny of tax to government. I am taking an example of a tea maker near to my place. Most of them are using domestic LPG for his burners and not purchasing it at commercial LPG rate. Can you believe he has a daily turnover of around Rs 10000? I can show the calculation:-
Number of kettle he distribute =70
Number to cups in each kettle1=15
Cost of each cup=Rs 3
Total money generated by distribution of tea= 70*15*3*2 (Twice a day)=6300
And total money he generate by selling tea on his shop must be around 3700
Now this guy is distributing his tea in various companies and almost all nearby offices. And if we calculate his annual turnover comes to 12*30*10000=3600000=36lacks. Thisi income is just from one shop as he had a small chain of his tea shop in city of Pune; I guess 4-5 branches.
Can you ever image how much one can save in just selling tea? And he is not paying anything to government for this income. Is government taking any steps to trap these small businessmen? No, because it will effect their vote bank. Same is the case of private busses and auto/taxi drivers. There are thousands, lacks of such people who are showing them below poverty line but they are earning much more then middle class people.

Today morning I read news of increasing the service tax. There is always a slogan by Indian common man that “Dal- roti kha kar kaam chalate hain” (We are surviving in having just dal and roti). This slogan is no longer true for them as cost of dal is now increased more than 50 rupees a kg. And cost of other consumable goods has also increased. If we see the growth and salary of people in India then cost of various goods are now already doubled or triples (we can take example of pulses, petrol and even salt). Is this the case with the salaried person? Is there salaries are also tripled now? No, but they have no other option but to bear with this.
Government is showing growth rate as 8% every year but I am worried they are going down by double of this figure every year. I am worried in thinking of situation of India 10 years down the line that how common man will survive.

This is my suggestion to government that instead of thinking of various issues regarding the development of country and setting new industries in India we should first think of basic problems of this country. Government should think before selling land of poor farmers and restricted area land to various industrialists and set up SEZ to fulfill there needs and generate money out of that. No country can because economically fit if basic needs of citizens are not fulfilled.

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