#sethurathnamravi

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SRaviBSE: Key Highlights of the Upcoming Budget - Green Energy and Job Creation

This year’s budget will set the tone for the NDA 3.0 government, with SRaviBSE, also known as Sethurathnam Ravi, anticipating a similar direction to the previous budget. The emphasis will likely be on growing and boosting infrastructure and capital expenditures (capex). Job creation is expected to be a key factor in all policies, with a strong push for capex in the manufacturing sector through private-public partnerships.

SethurathnamRaviBSE predicts that the government will incentivize clean and green energy initiatives, including electric vehicles, waste-to-energy projects, green coal, and sustainability efforts, aligning with Bharat’s vision of Vikshit Bharat.

The budget may consider granting infrastructure status to the tourism and hospitality sector, recognizing its role as the second-largest employment provider. This status could facilitate funding access at lower costs, essential for achieving the target of 15 million foreign tourists and 20 billion domestic travelers.

Given the consistent increase in GST collections each quarter, the upcoming budget may rationalize GST rates, particularly in the clean and green energy sector.

Sethurathnam Ravi expects modifications to the new tax regime, potentially increasing exemption limits and offering specific exemptions for health, pension, and education, which would impact personal taxation. Changes to the national pension schemes may also be considered to reduce the long-term burden on the government, addressing employee concerns through various feedback mechanisms.

Overall, this budget is expected to be a directional one, with a focus on infrastructure, job creation, and tax relief for the middle class.

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SRaviBSE Anticipates Major Shifts in Infrastructure and Green Energy in Upcoming Budget

This year’s budget will set the tone for the NDA 3.0 government, with SRaviBSE, also known as Sethurathnam Ravi, anticipating a similar direction to the previous budget. The emphasis will likely be on growing and boosting infrastructure and capital expenditures (capex). Job creation is expected to be a key factor in all policies, with a strong push for capex in the manufacturing sector through…

SRaviBSE Anticipates Major Shifts in Infrastructure and Green Energy in Upcoming Budget

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Sethurathnam Ravi Discusses Raising GST Evasion Threshold for Arrest to Rs 3 Crore

In a bid to streamline business operations and reduce harassment, the Centre is poised to raise the threshold for arrest and criminal prosecution in Goods and Services Tax (GST) evasion cases from Rs 2 crore to Rs 3 crore. Sethurathnam Ravi, former Chairman of the Bombay Stock Exchange (BSE), shared his insights on this proposed change during a discussion with Tarun Nangia and other industry experts.

Sethurathnam Ravi opened the discussion by highlighting that the industry has long called for such reforms to mitigate the fear of arrest and other punitive measures, and these concerns have been consistently communicated to the finance ministry. He acknowledged that while the proposed increase from Rs 2 crore to Rs 3 crore is modest, it reflects the government’s cautious approach.

"The government faces a dichotomy," Ravi explained. "If they raise the threshold too much, it could lead to issues with fraudulent tax invoices, which have been a significant problem. They are trying to balance supporting honest taxpayers while curbing fraudulent activities."

Sethurathnam Ravi noted that the government’s cautious stance is evident in the phased implementation of e-invoicing, which offers real-time access to invoices and helps curb the manipulation of fake credits. This step-by-step approach, he believes, indicates the government's intent to gradually reform the system.

"The government aims to decriminalize the process," Sethurathnam Ravi said. "However, they are proceeding slowly due to various regulatory and procedural challenges. I personally believe the threshold should eventually be raised to Rs 5 to 7 crore. Penalties can still be imposed on wrongdoers, but arresting and coercive actions can lead to misuse of power."

Sethurathnam Ravi emphasized that many businesses are concerned about receiving notices from various levels, which can disrupt operations. Increasing the threshold to Rs 5 to 7 crore, with appropriate checks and balances, would provide a more conducive environment for businesses to thrive without the constant fear of punitive actions.

In conclusion, while the proposed increase to Rs 3 crore is a positive step, Ravi and other experts believe that further adjustments are necessary to create a fairer and more efficient tax system.

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S Ravi, Former BSE Chairman-“Pattern Of Investment In International Mutual Fund Is Different From That Of Investments In Domestic Mutual Funds”

Sethurathnam Ravi, popularly known as S Ravi is the former chairman of Bombay Stock Exchange Limited (BSE). Currently he is the Founder and Managing Partner of Ravi Rajan & Co., an advisory and accountancy firm, headquartered in New Delhi, India. He is also an Associate Member of Association of Certified Fraud Examiners (CFE), USA, and also a registered Insolvency Resolution Professional. Sethurathnam Ravi in his latest article explains the challenges faced when investing in overseas mutual funds.

According to the Sethurathnam Ravi BSE ,the investment can be made in Indian Rupees and redemption is in Indian rupees. Investing in overseas Mutual Fund which is non-domestic has its own challenges in terms of methodology of payment, foreign exchange fluctuation and taxation, he explains. “The most preferred investment vehicle is through domestic fund houses as data and performance is readily available. Investors who have strong domestic presence the most efficient mechanism is to invest through domestic fund houses who in turn invest through various schemes in foreign stocks”, S Ravi said.

Sethurathnam Ravi also explains about the pattern of investment in overseas mutual funds. As per his affirmation the pattern of investment in international mutual fund is different from that of investments in domestic mutual funds. There are many things that need to be taken care of while investing in international mutual funds. S Ravi also explains about the term of investments that are suitable for investing in overseas mutual funds unlike domestic funds.

“An aspect which needs to be factored in this is that it is always better to invest medium or long-term perspective as one foreign stock give a good return over a period of time. Short-term investment in international mutual funds have witnessed volatility and thus should be avoided. Non-resident Indians have the liberty of investment from the country of residency. International mutual funds have delivered return of 27% in the last year. The three-year return is around 12% and the five-year return is approximately 13%”, Mr. Ravi, Former BSE Chairman affirms.

Investors still have the option to choose country specific investment through domestic fund house. There are specific schemes for investments predominantly in the US based stocks. Today the investor is equipped with data wherein fund performance is available along with NAV and returns, Sethurathnam Ravi concluded.

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S Ravi, Former BSE Chairman Advices The Stock Market Investors“New Investors Should Be Patient During Tough Times”

At a time when the Covid-19 pandemic and consequent lockdowns affected the economy, the stock market was one of the very few areas where the wheels were still turning. This attracted many new investors, and a record number of new Demat accounts were opened. During then pandemic, the Indian stock market witnessed lakhs of new investors form the Tier-2 and Tier-3 cities. However, this enthusiasm seems to have waned as returns from the market have flattened in recent months. From a high of 20 lakh new investors in October 2021, it has dropped to 13 lakhs in April 2022.

According to the former BSE Chairman Sethurathnam Ravi, foreign portfolio investments or FPIs became net sellers for eight out of 12 months in 2021–22 with a net outflow of Rs. 1.3 lakh crore, against a net inflow of Rs. 2.8 lakh crore in the previous year. Mutual funds, on the other hand, made heavy investments worth Rs. 1.7 lakh crore in the Indian equity market in 2021–22, according to the Reserve Bank of India.

There was a massive rise in the number of new Demat accounts. A total of 50 lakh Demat accounts were opened in 2019–20 and 1.42 crore in 2020–21. This shot up to 3.46 crore new Demat accounts in the year 2021–22. This means that on average, 28.8 lakh Demat accounts were opened every month during 2021–22, which was higher than 11.8 lakh accounts per month in the previous year and 4.2 lakh Demat accounts per month in 2019–20.

Due to this, the Indian stock market future remained dark with the pandemic looming over us. The global supply chain was crippled. Yet, S Ravi acknowledges that India’s stock market was one of the few areas that remained more stable than other markets. Finance Minister Nirmala Sitharaman said that retail investors seemed to act as shock absorbers even when foreign portfolio investors went away.

Experts including S Ravi BSE Chairman suggests that ups and downs in the stock market are a usual phenomenon and that new investors should be patient during tough times. For many new investors, the market trend during the 2008 American subprime mortgage crisis is too old to be considered. He said to India Today the other day that, “If the retail investors have used prudence and have invested in good stocks with strong fundamentals, they should not worry”. As a word of caution, Ravi added that retail investors should diversify their portfolios and should not take loans to invest in equity.

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Sethurathnam Ravi, Former BSE Chairman Advices Retail Investors To Diversify Their Portfolios

At a time when the Covid-19 pandemic and consequent lockdowns affected the economy, the stock market was one of the very few areas where the wheels were still turning. This attracted many new investors, and a record number of new Demat accounts were opened. During then pandemic, the Indian stock market witnessed lakhs of new investors form the Tier-2 and Tier-3 cities. However, this enthusiasm seems to have waned as returns from the market have flattened in recent months. From a high of 20 lakh new investors in October 2021, it has dropped to 13 lakhs in April 2022.

According to the former BSE Chairman Sethurathnam Ravi, foreign portfolio investments or FPIs became net sellers for eight out of 12 months in 2021–22 with a net outflow of Rs. 1.3 lakh crore, against a net inflow of Rs. 2.8 lakh crore in the previous year. Mutual funds, on the other hand, made heavy investments worth Rs. 1.7 lakh crore in the Indian equity market in 2021–22, according to the Reserve Bank of India.

There was a massive rise in the number of new Demat accounts. A total of 50 lakh Demat accounts were opened in 2019–20 and 1.42 crore in 2020–21. This shot up to 3.46 crore new Demat accounts in the year 2021–22. This means that on average, 28.8 lakh Demat accounts were opened every month during 2021–22, which was higher than 11.8 lakh accounts per month in the previous year and 4.2 lakh Demat accounts per month in 2019–20.

Due to this, the Indian stock market future remained dark with the pandemic looming over us. The global supply chain was crippled. Yet, S Ravi acknowledges that India’s stock market was one of the few areas that remained more stable than other markets. Finance Minister Nirmala Sitharaman said that retail investors seemed to act as shock absorbers even when foreign portfolio investors went away.

Experts including S Ravi BSE Chairman suggests that ups and downs in the stock market are a usual phenomenon and that new investors should be patient during tough times. For many new investors, the market trend during the 2008 American subprime mortgage crisis is too old to be considered. He said to India Today the other day that, “If the retail investors have used prudence and have invested in good stocks with strong fundamentals, they should not worry”. As a word of caution, Ravi added that retail investors should diversify their portfolios and should not take loans to invest in equity.

[online-journalist]

Investment Applications Are Frequently Used To Swindle Small Investors, Affirms Former BSE Chairman, Sethurathnam Ravi

Sethurathnam Ravi (S Ravi) is the former BSE Chairman and founder of Ravi Rajan & Co. In his past career he held the position of Union Finance & Revenue Secretary at India Ministry of Finance. Presently, Mr. Ravi holds the position of Non-Executive Chairman of Tourism Finance Corp. of India Ltd. and Director & Managing Partner at RRCA & Associates. Sethurathnam Ravi shares his views on how to protect yourself from fraudulent app scams.

According to Mr. S Ravi BSE, fraud applications have been a menace to many users who have lost money unknowingly. They are fake applications that are mirrors of legitimate applications available on the market. Fraudsters and scammers create applications to induce people to use them. These applications could be similar to popular applications to mislead users who download them on their phones or laptops. It can be a jumble of words that are more or less similar to frequently used applications. However, these applications have one thing in common; they are disguised as genuine applications and are well constructed.

“It is public knowledge that many of these fraudulent apps have also been promoted and advertised on Google networks, Facebook, Instagram, TikTok, etc. As per published information, more than 5 lakh Indians were cheated by using Chinese applications amounting to approximately ₹150 crores. Many investment applications were used to swindle small investors”, Mr. Ravi says.

There are too many cash applications that have witnessed a high percentage of fraud. Cash applications have been chosen carefully as this directly causes financial damage. Such applications are Ultima Keyboard space 3D pro, GT Sports Racing Online, Fitness Ultimate 2o21, Wi-Fi pass code unlock, video mixer editor pro, RT news, UC Browser, Clean It Reface Ultra, live photo animator, ultra-camera HD, water drinker reminder, magic mix, etcetera. Researchers have identified more than 151 applications that, once installed on phones, can carry out fraudulent activities.

Sethurathnam Ravi BSE Chairman also acknowledges that the government of India has taken measures to eradicate cyber-crime. Local police have consistently arrested fraudsters and also investigated promoters of such applications. The government of India banned Chinese applications to protect investors. A comprehensive list of fake applications was circulated to spread awareness, Mr. Ravi concludes.

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Seathuruthnam Ravi- wrote How Govt Can Ease GST-related Complications To Facilitate Business For MSMEs

The government believed that a streamlined tax system and a single market would increase operational effectiveness, particularly for MSMEs

According to the Ministry of Micro, Small, and Medium Enterprises, there were more than 7.9 million MSMEs in India as of March 27, 2022. These enterprises account for more than 29 per cent of the GDP and 50 per cent of all exports from India. Additionally, MSMEs are responsible for 30 per cent of the country’s manufacturing production. In the 2022 Statistareport, almost 110 million Indians worked in MSMEs in FY16. Urban areas have much higher MSME employment than rural ones. Micro businesses, of all firm sizes, represented the greatest proportion of employment in the country during the studied period.

MSMEs form the backbone of India. To bring more ease to this crucial sector, the Indian government introduced the Goods and Services Tax (GST) Act on March 29, 2017, which became effective on July 1st of that same year. The government believed that a streamlined tax system and a single market would increase operational effectiveness, particularly for MSMEs.

The Benefits of GST

The Benefits of GST Sethurathnamravi write about Business MSMEs

The following are the benefits and future objectives of the GST Act:

The number of indirect taxes has decreased.

Since there are fewer GST compliances, filing your GST return won’t take up a lot of your time.

Complete GST registration can be done online.

After obtaining GST registration, it is simple to conduct interstate business through e-commerce operators.

Through online procedures, the GST has regulated unorganised business sectors.

Once a GSTIN is allotted, it can be used for all GST facets.

GST provides a composition plan to pay taxes at a set rate while lowering the amount owed in taxes and tax rates.

Having fulfilled the compliance, you can easily claim an input tax credit.

Under GST registration, tax avoidance is easy to spot.

The endeavour is to put ever more companies under the GST.

The consumption of goods and services will be encouraged.

GST sets reasonable prices for a product or service.

However, a study done by the Reserve Bank of India (RBI) on GST’s one-year completion shows that the new tax act has unquestionably raised operating expenses for MSMEs. These enterprises find it challenging to separately invest in computer infrastructure and GST-related services from CPAs and tax experts. Despite the fact that GST offers a lot of benefits, MSMEs seem to be taking time to become accustomed to the new tax structure.

As the GST Turns 5, How Are Businesses Faring?

Earlier this year, in 2022, Local Circles reached out to Indian business people, collecting their feedback on the new role of GST in their professional lives. The findings of the survey include:

Compared to pre-GST business taxation, 37% of enterprises are spending more time on GST compliance.

50 per cent of enterprises claim that their monthly accounting costs have risen since the introduction of GST.

75 per cent of enterprises find the matching of invoices for outputs and inputs to be the primary problem with GST.

Only 45 per cent of enterprises are delighted with 5 years of GST, whereas 24 per cent express discontent.

Connection troubles, logging-in delays, and submitting the information are some of the other major issues businesses are facing while on the GSTN website.

Concerns and Recommendations with Respect to GST

Over-MB documents cannot be uploaded to the portal; this limitation has to be extended.

E-invoicing is valid for 24 hours only; either the time restriction should be extended or e-invoices should automatically be emailed to enterprises.

From October 1, 2022, e-invoicing is applicable if the turnover exceeds Rs 10 cr; it should not be so for MSMEs.

GST registration is done online, but physical verification is carried out by state GST departments. As a result, MSMEs must interact with the GST department staff, which might give way for corruption.

It is challenging to determine if a new registration falls under state or central jurisdiction. Regarding their state jurisdiction office details, new registrants or taxpayers often face a lot of misunderstanding.

There are numerous legal and factual disputes; thus, the Income Tax Department needs a separate tribunal.

Petroleum products are still exempt from GST.

How the Indian Government Is Relaxing GST for MSMEs

The Government of India has been taking numerous actions to create a more favourable environment for the growth of MSMEs because it is aware of the enormous contribution of the sector. It has relaxed various MSME-related rules as part of the GST regime. For example, the initial exemption level for commodities, which was Rs. 20 lakhs, has been raised to Rs. 40 lakhs. The annual threshold for the Composition Program was raised to Rs. 50 lakhs for services and Rs. 1.5 crore for commodities. Those dealing in composition are now permitted to offer services.

GST intends to broaden the base of taxpayers, mostly MSMEs, and it might place a burden on them in terms of compliance and the related expenditures. However, in the course of time, GST will make these MSMEs more competitive by creating a level playing field between them and large corporations. Additionally, these Indian MSMEs would be able to compete with overseas rivals from low-cost manufacturing hubs like Bangladesh, China, and the Philippines.

Author:

Sethurathnamravi Ravi

The author is a Former Chairman of BSE, Founder & Managing Partner of Ravi Rajan & Co practising chartered accountant and an independent director on many large public companies whose views and ideas have been instrumental in framing policy