A dozen IRS Officers resign for Packages of Rs. 1 Crore
January, 10th 2008
Poor Packages of IRS Officers in Revenue Department has taken its toll with a dozen IRS Officers from Customs & Excise and Income Tax Department resigning from the Government for greener pastures having offers from the Corporate World.
A Commissioner of Customs posted in New Delhi has already resigned. He is said to be having an offer of Rs. 1 Crore per annum from a big company having stake in Financial and Infrastructure Sector.
A Commissioner of Central Excise posted in Karnataka has also resigned. Further, an Additional Commissioner of Central Excise posted in NCR has also resigned.
Several more IRS Officers have got their resignation letters typed and are waiting for advice of their astrologers for putting auspicious date and signature. Those opting for voluntary retirement will also get the benefit of Pay Commissions recommendation which will be effective from 1st January 2006 as far as Pension and other benefits are concerned.
There has been a wide gap in the packages offered by the Government and the packages being offered by MNCs and Indian Corporates. Even a CA with one year of experience is offered a package of Rs. 10 lakh which is much more than the salary package of the Chairman of Central Board of Direct Taxes or Central Board of Excise & Customs.
An ex-IRS Officer who is now with a Big Consulting company is already getting a package of Rs. 1.5 Crore per annum. Even an Inspector of Central Excise Department has been hired by a Big Consulting Company as Manager on an annual package of Rs. 24 lakh. CAs with 8 to 10 years experience are hired by Consulting Companies as Director for their Tax Advisory Practice on Packages ranging from Rs 50 Lakh to Rs 80 Lakh Per Annum. Those having over 10 years experience are hired as Partners on Packages ranging from Rs 1 Crore to Rs 2 Crore.
When some candidates without any Professional Degree are anointed as Country Head with package of Rs 2 Crore per annum by some Companies; IRS Officers having wide exposure and expertise deserve and can expect much better Positions and Packages. Several SEZs are already looking for CEOs on Packages of Rs 1 to Rs 1.5 Crore and an IRS Officer is their first choice considering his rich experience in Export-Import regulations and procedures.
Those joining Consulting Companies are gainers in short term but are losers in long term. An IRS Officer who resigned in Eighties and floated his firm is said to be having annual billing of over Rs 100 Crore. An Inspector of Central Excise who resigned couple of years ago now has a billing of Rs 5 Crore. Those joining the Companies have also to retire on turning 60 ; but in your own once you create your name in the market; the name sells and the sky is the limit even if the work is handled by the juniors. An employee gets a hike of 15 to 20 per cent per annum ; while an Independent Professional can grow by 50 to 100 per cent per annum if he can market himself.
It is always a better option to make Rs 10 Lakh of your own as an entrepreneur rather than getting Rs 50 Lakh as an employee. If you set up a Company; the fruits go to generations and with PE money flowing and floating in India; you can also sell a small stake of your Company for few Crores after running it for few years.