Showing posts from 2008

Why pay Service Tax on Packaged Software - to be on the safer side?

In India, the taxation and legal system is very complicated, extremely slow and quite expensive in terms of money and time.

So, whenever there is an ambiguity on the applicability of a particular tax or law - usual advise given by Tax Consultants is - "we feel this - this and this ... - but to be on safer side pay tax" i.e., collect from the customer and pay to the government. After all - it's the poor customer who pays!!!

And bigger the company seeking the advice - bigger is the consultant i.e., all MNC's seek advice from one of the big four management consultants. Never mind what their track record is. We have seen fate of number of global consulting organizations and their customers in the last 7-8 years. Not only consultancy organizations but even their top notch MNC customers have gone out of businesses. So, much about the big consultants and their advice!!

So, it's time that we start using our brain and innate wisdom to understand the tax/legal issues on hand …

Quality of Service provided by the Service Providers

I remember hearing an episode from my Master about quality of work done by people from India. Many years back in the British newspapers Churchill’s remark about loose wires hanging on the wall attributed to 'some indian must have done the electrical wiring' had attracted furore from Indian elite of his time. But after narrating this episode my master said “Churchill’s observation was correct. How much True it is?.” He went on to explain that we never take 'pride' in what we do.

It is quite sad that even after lapse of 50-60 years situation is very much similar. Although India has emerged as a hub of 'call centre' for the world and MNCs like Dell and others outsource their work to India - looking at quality of services offered - I'm convinced that this boom also will die the death of 'dot-com' bubble. It may not be that fast or sudden but it is written on the wall. Companies giving this outsourcing work to India will realize soon that it's not wor…

Tell me what is a “Packaged Software” license?

Is it a purchase of “Goods”, “Service” or a “Royalty Payment"?

The idea of “duality” has deep roots not only in Indian Philosophy - where God is supposed be ‘dvaita’ as well as ‘advaita’; but such duality is in modern science also.

In Science, debate over the nature of ‘light’ and ‘matter’ is dating back to the 1600s, when various scientists proposed competing theories of ‘light’. It was through the work of Albert Einstein and many others that current scientific theory holds that all ‘particles’ also have a ‘wave’ nature. That is, 'light' has a dual nature i.e., it is a 'wave' as well as a 'particle'. When light hits a photosensitive material it generates electricity due to its particle nature.

Our Government – which seems to have no equal any where in any other country – have discovered another duality – in fact a new ‘tri-ality’ (for want to better expression let’s say this) about ‘Packaged Software’. It has found that “Packaged Software” is three different…