[DuHasstMich]

The entire message reeks of the word 'SCAM', who in their right mind would like to sabotage their own "IT company" by indulging in such practices to make 50k?

The company has been setup purposefully for selling BH numbers, it's their primary business and not some social work as depicted in the message.

The problem with 95% of us is that we try to find loopholes in everything, then cry foul when it doesn't go as planned.

[Thyag]

Originally Posted by GTO

Someone dropped in this email offering a "Paid BH Registration" service to BHPians.

In our country everything is possible, It is a scam or not - only one thing that worries me is the audacity with which people are getting involved in this type of activities. There is no fear whatsoever, such is our, Law & Order, Judicial Systems !

[Samurai]

Originally Posted by Axe77

Why is that a scam. If one is a high ranking private employee (and please do remember even a director can be an employee), working in a company with presence in 4 states (with 4 GST numbers), capable of being moved from one state to another state, then the provision entitles that person to register his vehicle as BH.

It is better to get clarification on this point. While directors can be salaried employees, there are extra restrictions for directors. For example, director employees can't take loan from the company, while regular employees can.

[Axe77]

Originally Posted by Samurai

It is better to get clarification on this point. While directors can be salaried employees, there are extra restrictions for directors. For example, director employees can't take loan from the company, while regular employees can.

There is no confusion here. An employee of a company (/ partner of partnership) and that would include director of a company - if the company has 4 GSTs in 4 states, the said individual is eligible to buy a vehicle with a BH plate subject to Form 60 / related documents etc being provided.

This is not to be confused with directors taking loans from the company. The company is not granting him a BH privilege. They are simply providing paperwork that proves he works for the company - in whatever capacity that may be.

[PPS]

Originally Posted by Axe77

Why is that a scam. If one is a high ranking private employee , working in a company with presence in 4 states (with 4 GST numbers), capable of being moved from one state to another state, then the provision entitles that person to register his vehicle as BH.

Completely agree. But can the owner/founder of a Company be considered as an Employee of the Company? He will be considered as an Employer I believe.

More often than not, what happens is that such vehicles get registered in company name when its a proprietor / significant shareholder of a large company so that it can benefit from depreciation, expense out interest cost etc.

Absolutely correct.

Which is also possibly why BH as a scheme is only available to individual employees and not cars registered in company name.

Correct.

If a high ranking / well paid employee has chosen to buy a car in his individual name under BH and not in company name, then he should get the benefit if the company meets the 4 states / 4 GST criteria.

Correct me if I'm wrong, but a BH registered car is substantially cheaper upfront compared to Company registered car.

(and please do remember even a director can be an employee)

This varies from statute to statute I believe. There are judgments which say that Directors perform a dual role. It all varies depending on the role in the Company.

[Axe77]

We are now very close to digressing so I’ll leave my last post on this:

Founder is just a tag. A shareholder can also be a director and as a full time director drawing a salary can legitimately use BH for a vehicle purchased in his individual name (assuming the company meets 4 state criteria etc and he can get a form 60 or whatever else they require).

On the second point, indeed company registration costs are higher - some folks buy it in company name regardless (assuming it’s their company and they can decide either way) as it’s a different way to funding the purchase - company getting a loan on its balance sheet, depreciation benefits for company balance sheet, expense write off on interest paid etc.

[ssateesh]

Originally Posted by PPS

Correct me if I'm wrong, but a BH registered car is substantially cheaper upfront compared to Company registered car.

Oh Yes !! It's substantially cheaper upfront and also you start gaining every 2 years vs lease as well. For BH registration company lease can't be taken. Lease plan is of my organization, varies depending on organization

[saubi2299]

This may not be technically Tax Evasion but is Tax Avoidance for sure. Just like GAAR was introduced to prevent tax avoidance by corporates, something similar needs to be done for BH registration also.

In my opinion, Govt should either go for One Nation One Tax or simply stop this BH registration for Private Sector employees. Too much scope for its exploitation in current form.

In private sector, significant number of potential beneficiaries shuffle between Delhi NCR, Mumbai-Pune, Bangalore and Hyderabad. Out of these, Haryana has not implemented BH, while other states have made it extremely tough to get one.
People do relocate from other states also but the frequency may not be prohibitively high.

[rakesh_r]

This looks like a WIP plot for the next series of SCAM, SCAM-2024 maybe?
Got to laude this guy to approach an established forum for such shady practices.

[IamNikhil]

Employing someone for 3 months only on paper and then firing them after this period, solely for the purpose of BH registration!!! This is the dictionary definition of "FRAUD".

@GTO - You should forward this mailer to the Cyber Cell of the Mumbai Police. Let them track this scamster and drill some sense into his brain.

[dsuman]

A Company Director making an offer so openly and cooking up probable definite litigations is definitely not believable. This is a pure Scam. The fraudster will simply fly away with money. These things are done discreetly. Good that GTO has opened this thread. Let this become viral.

On the contrary, actions like these make me believe the regulations that Government sets sometimes are justified. People trying to fool the system make life difficult for the genuine candidates.

[Fuldagap]

Originally Posted by IamNikhil

@GTO - You should forward this mailer to the Cyber Cell of the Mumbai Police. Let them track this scamster and drill some sense into his brain.

This is the right thing to do. Not caught, this guy is sure to find some innocent preys. Or maybe already has, given the properly typed email.

[Bhodrolok]

The BH series in its current form is in itself an invitation to misuse it so I am not surprised that there are "entrepreneurs" looking to take advantage of it. This is the "jugaad" economy at work.

I have the following concerns about current implementation of BH series,

1. How do you make sure the person is still in same employment situation at renewal?

2. How do you establish residence for a person for each renewal?

3. How do states ensure that the BH renewal is done on time?

This seems to be an option to siphon off state revenues to union revenues so that the state governments are more indebted to the union government. Much like our cess heavy taxation policy.

I am all for an annual or biennial registration for people in transferable jobs but the implementation has to be better.

[Cresterk]

Originally Posted by Bhodrolok

The BH series in its current form is in itself an invitation to misuse it so I am not surprised that there are "entrepreneurs" looking to take advantage of it. This is the "jugaad" economy at work.

I have the following concerns about current implementation of BH series,

1. How do you make sure the person is still in same employment situation at renewal?

2. How do you establish residence for a person for each renewal?

3. How do states ensure that the BH renewal is done on time?

This seems to be an option to siphon off state revenues to union revenues so that the state governments are more indebted to the union government. Much like our cess heavy taxation policy.

I am all for an annual or biennial registration for people in transferable jobs but the implementation has to be better.

Agreed. Just make BH registration the norm across the country and we would also take care of violence and discrimination against out of state cars by political goons or cops looking for an easy payout.

Maybe half the registration cost can be provided to the state govt as well to make it more appeasing.

[Chisels121]

TBH this isn't a scam per se as the OP is not swindling someone's money. But what I think can be dangerous is the fact that if his company is involved in some other scams and the person who joined the company for the BH registration gets stuck due to he/she being an employee of the company and police can say that the person is involved too, as he/she is an employee.