Originally Posted by m8002?
Isnt this a grey area that is still under debate. If the fish monger can deposit the old Rs.500 notes as daily sales, why not the white goods retailer or jeweller? My understanding is that jewellers can no more deposit old Rs.500 and 1000 notes telling its sales from last month.
The difference is that the fish monger is more honest
. He knows exactly how much he would get as his sales value, and perhaps may have been depositing similar amounts all this while. In December also he goes with pretty much the same sales turn over, deposits it and walks away. IT department would just check if there is any major discrepancy in the deposit pattern. The fish monger is confident that they would not find any discrepancy, because he has been honest all the while.
Now for a jeweller life is not simple. What has happened is that lot many black money hoarders went and purchase large amounts of golds. They paid in Rs.500 & Rs.1000 notes. Now the jewellers would have to show their actual turn over when they have to go and deposit the same. They would be forced to tell why so much Rs.500 & Rs.1000s with them. Some deals, they may be able to back date the billing date, and say that it was purchased a few days before Nov 8th. IT & Sales Tax would then ask for the stock position registers. Many jewellers also have unaccounted Gold. That would also get exposed. The original plan was that jewellers etc. should not accept these notes. Because government knew that people would try out "high value purchase" & gold was the easiest one. But jewellers went ahead and allowed the sale. The government threatened them of raids, and then did carry out the raids. The jewellers ran to the bank. One major jewellery group in KL has closed down for last 3-4 days.
As for other mid-time shop keepers (stationary et.al). They also do not report their actual sales volume. So that they can fudge on VAT, CST and very many other taxes. Many others (like caterers & priests) who provide their services also do not even report most of their income received for doing "service". Those people would get trapped if they are paid using Rs.500 & Rs.1000.
Originally Posted by mayankk
Someone who's entire life's savings is in a small Pan-bahar box as 500-1000 rupee notes will obviously be in panic.
If people were honest (and that is a big IF), this "some one" could have used the exchange scheme (Rs.4500 worth new notes) to tide over his immediate cash requirements and then start using a bank account. If there are people who hold all their savings in 500-1000 Rs. notes in their own homes, their biggest threat is not the government but burglars. I do understand that there are poor people who needs to be helped. But their entire cash worth is not really high. But what we see today is that lots of rich people crying over the "poor people" in order to have this operation scuttled. At present the "hardships" are high lighted time and again, and who does this mainly? Media and political groups who have their own vested interests and wants to retain the black money sources.
I downloaded Paytm on my maid's phone. Transferred the salary to her bank account. Now she has to spend another 50 bucks for data. Thats a fair share when your cumulative salary is 6000 rupees.
In my family we have a maid who is semi-literate, and a kind of odd-job man who is illiterate. When we came to know of this, what we did was to distribute some 100s which we had as their salary advances. Our own stuff we could manage (through online payments for me, and wifey works in the bank any ways). This may not be the perfect solution, but there are small measures which we can use to help genuinely poor people.
Originally Posted by poloman
In Kerala there is a NRK in almost every house hold. In some areas the entire money they transfer is invisible to the system. They use hawala channels to handover the money to their relatives in Kerala and straight away the entire money gets deposited in a co-operative bank, with no questions asked. A ordinary salaried person in the state has to compete with these kind of people for resources.
+1 to that. Just a few hours back there was a case of car toppling head over in Southern Kerala. The driver did not even try to check the vehicle condition, but ran away with two bags. We can take a guess on what was inside the bags. Kozhikode police seized 62 lakhs worth of unaccounted money yesterday. Day before that it was the time for Thrissur Police and Palakkad Excise teams to seize around 40 lakhs of unaccounted money. One old woman who tried to deposit Rs.37000 lost the entire money (it was all counterfeit) and got a good police case on her now. She now whines that the money came through hawala
In KL, the situation was so bad that unless you had shady business deals buying even a cent of property was a night mare. It is quite known that there were groups operating who were buying land on a you name the price, we have it
kind of deals. All this was done in cash. Now the illegal pawn brokers who had usury interest of 13-15% daily interest is now trying to dispose some of their illgotten wealth at lower intrest rates.
To be honest, I also feel that at least in KL the advertisement sources of media outlets needs to be verified. "Follow the money"; should be the motto. Their reports would certainly be in favour of their main advertisers.