Rahul Mehta Gandhinagar LsCandidate

How cashless economy doesnt mean better tax collection - bitcoins or use of overseas banks
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If cash is banned, then the digital technology may increase use of of overseas banks much easier. Let me explain how it can work
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Case-1 : Buyer / seller use account in Indian bank
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(1.1) Say buyer B and seller S both have account in IB = Indian Bank. And both have smart phones
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(1.2) Buyer B buys goods of say Rs X and via smartphone transfers Rs X to account of S
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(1.3) Seller S has to pay VAT , income tax etc
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Case-2 : Buyer / seller use accounts in some Chinese bank
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(2.1) Say buyer B and seller S both in India have account in CB = Chinese Bank. And both have smart phones
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(2.2) Buyer B buys goods of say Rs X = Yen Y and via smartphone transfers Yen X to account of S. The server is is in China or Nepal or Pakistan and communication is encrypted, and GoI has no way to know what details of transactions.
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(2.3) Seller S has to pay NO VAT , income tax etc
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(2.4) Now, how will buyer B get Chinese Yen in his account to begin with? And what will seller S so with Yen?
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what will seller S so with Yen??
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The seller can use Chinese Yen to import goods from China or import drugs from pakistan or import weapons from China / pakistan . Or, seller can sell Yen for gold or dollars to someone who wants to import chinese goods or chinese weapons. China can even open shops in Nepal / PoK where China will sell rupees Rs 100 notes or gold or silver or dollars or drugs for Chinese Yen. In fact, there are several no-go zones in Naxal areas, west bengal and many minority areas across India. The shopkeepers in these areas can sell goods , and bads like liquor or commercial sex or drugs for Yen which can be transferred over smartphone apps.
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how will buyer B get Chinese Yen?
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The buyer B will get Yen by selling his services or goods in Chinese Yen to some other buyer.
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IOW, smartphone in every hand doesnt reduce use of unaccounted rupees. Because smart phone makes it possible for anyone and everyone to open and operate an account in foreign bank !!!
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By demonetization, SoMoke have NOT killed value of unaccounted liquid wealth. They have ONLY lowered value of Indian currency to store unaccounted liquid wealth !!! So rupee hoarder will face a huge short term loss and short term disturbance, But they will move to other forms of liquid unaccounted wealth !!! And one such form is --- open and operate bank account in some Chinese bank or Pakistani via Smartphone !!!
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Solution?
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Solution I propose is to remove VAT / GST and focus on wealth tax. And use "deemed auction on land sale". These laws kill utility of unaccounted currency in any form. So there will be less need for non-white currency.