RE:Most people are jealous of Delhi's growth
by milind sabnis on Jul 13, 2008 12:50 PM
Mr Prem Bharadwaj, you are again missing the point!
The entrepreneurs e.g. Tata/Birla buy raw materials like steel from Jharkhand after paying royalty and taxes to the Centre and Jharkhand State. They being entrepreneurs bring in capital and labor to convert the steel into finished products which are then sold for profit. It is the entrepreneur who is taking the maximum risk and therefore earns the maximum profit. It is this entrepreneur's profit which is the corporate tax (a Direct Tax) which Mumbai is contributing to the Centre and which Delhi is unfairly and underservingly using for its infrastructure.