Thursday, December 15, 2005

Of servers and stamp duties

The Maharashtra government had asked banks, bond houses to pay stamp duty on their transactions over the last 10 years. What is stamp duty? See here.

... According to market estimates, unpaid stamp duty on direct deals — transactions where no brokerage was involved — during this period could be close to Rs 700-1,000 crore...

Todays ET reports that these institutions have "informed" the state government that they will "shift" these deals "outside" Maharashtra.
How? By converting the current back up server that collates all these deals to the main server which I guess is located in Maharashtra. Where is the back up server located? Hyderabad! At the click of a button (almost!), transactions are shifted out of Maharashtra.

Maybe the Maharashtra government can now think of ways in which this can be prevented?

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