August 05, 2012

Why Not Regularise Bribe Payments / Corruption Charges ?

Jalandhar Thinkers feel if we cannot eradicate corruption / bribery let us make it official. Rates of Bribes can be displayed at various Govt. offices ( so that ordinary public prepares its budget accordingly and is not overcharged ). The bribe taking officials should then show these bribes as Other Income in their Income Tax Returns and pay Income Tax on it. 

Bribes and Corruption charges should be paid by A/c Payee Cheques / Bank Drafts . In fact because presently bribe payments have to be made only in cash there is a large amount of black money circulating in India. Every entity ( Individual or Corporate etc ) has to make payments in No. 2.

 A lot of Accounting Jugglery is done. One method is Under Invoicing the Goods supplied to Dealers / Wholesalers , The difference of Invoice Billed and goods supplied to them is kept by the Dealer under a Separate Head ( Benami of their Principals ) which the Principal directs the Dealer to pay in cash to the Bribe Seekers. The Institute of Chartered Accountants  should issue standard guidelines and Companies should show such payments separately in their Annual Reports to their Share Holders. 

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