The concepts of Taylorism and Fordism

The concepts of Taylorism and Fordism Taylorism is the attempt to make business decisions on the basis of data that is researched and tested quantitatively. Taylorism was advocated by Frederick Winslow Taylor, He considered it to be managements duty to identify ways in which costs could be accounted for precisely, so that efficiency could be improved. Fordism is the application of Henry fords faith in mass production run by autocratic management. This implies high division of labour and little workplace democracy, but with the consolation of high wages. Henry Ford was highly influenced by efficiency expert Frederick Taylor, he was the first to use scientific management techniques at his factory, Taylorism meant dividing vehicle production into uncomplicated repetitive steps there would be no need for skilled workers, men could learn to do any job quickly. In 1913 Ford introduced his most revolutionary change yet, his idea was, instead of workers moving around to assemble the product, why not get the product to move past the workers and thus he created the assembly line. Soon assembly lines were operational in fords factory. The lines became the key to mass production, a system that would remain nearly unchanged for most of the century. Few stood the pace of the mass production, workers began to quit, but ford was making record profits, so he could afford to increase pay. Henry Ford introduced the opportunity for a new pay system which was entirely different from Taylorism. It was a simple rule high pay for hard work. The new production methods which emerged in the early twentieth century were theorised initially, in 1911, by F. W. Taylor. Taylor coined his approach Scientific Management. Taylor had been trained as an engineer in a steel works. Taylor emphasised cooperation between management and workers. He aimed to increase productivity through reducing inefficiency caused, for example, by malfeasance. Believed that eliminating malfeasance would result in higher wages, shorter working hours, and better working conditions (Taylor, 1967, 15). Scientific management engaged a number of advances e.g. time and motion studies Division of labour is a process where you Break a job down into small, repetitive fragments, each of which can be done at speed by workers with little formal training. (David Lines, Ian Marcouse Barry Martin, 2006) The implications of the wage system is in equilibrium the quantity of labour demanded will be the same as the quantity of labour supplied so, the market will clear and there will be no unemployment. However, by paying an efficiency-wage, above the equilibrium wage rate, the labour market is thrown into disequilibrium, creating unemployment. Taylor used his time-and-motion studies to develop a productive division of labour system. Taylor argued that even the most basic, mindless tasks could be planned in a way that dramatically would increase productivity, and that scientific management of the work was more effective than the initiative and incentive method of motivating workers. The initiative and incentive method offered an incentive to increase productivity but placed the responsibility on the worker to figure out how to do it. To scientifically determine the optimal way to perform a job, Taylor performed experiments that he called  time studies, (also known as  time and motion studies). These studies were characterized by the use of a stopwatch to time a workers sequence of motions, with the goal of determining the one best way to perform a job. It was supported on the division of work, this breaks down the industrial processes into several simple operations that could be precisely timed and organised. Taylor advocated bureaucratization of the shop floor (through time and motion study) as a means to solve the problems of coordination and reintegration raised by the increasingly complex division of labour. (Ash Amin, 1996) A well applied Taylor system would improve the labour returns, although an important limitation of Taylorism is that it treats people like machines, or even (economic) animals, whereas they do not want to be treated as though they were. It is very monotonous work with little space for any creativity. In contrast with Taylor, Ford has a great insight in the market factors, he saw and exploited the fact that mass production needs mass markets. With Fordism every worker has a specific task in a limited space, while the car bodies moved along the assembly line. But the maximised productive efficiency of the assembly line production had its drawbacks. The main problems were the extremely high rates of absenteeism and labour turnover. The costs of these problems even exceeded the very low training costs of the workers. Another problem for Fordism like production plants is that the set up is extremely expensive, and it is also very difficult to alter a product because of the standardization. T>F or F>T because(150) Bi Taylor and Ford were respectively the main thinker and practitioner of scientific management / managerial control based in deskilling / decomposition. Taylorism / scientific management: an attempt to transform the organisation of work to enhance profitability and to reduce work control based in craft skills. The gap between management and labour therefore grew vastly when the management took control of organising the labour proccess. No longer was the skilled worker irreplacable. Now one worker was much the same as another, in fact the less skilled the worker the better in Taylorist factories. Stifles creativity   Places people in vertical skill pipelines Reduces workforce flexibility demotivates many individuals Reduces teamwork Promotes boredom and staff churn Treats people as wealth producing units Promotes a division between workers and management Depending on your outlook, promotes unionism and collective bargaining Fordism is the organisation of work which extends the dynamics of Taylorism and in particular is centred on the use of the assembly-line. More broadly Fordism can be thought of as operating at the social level and centres on state efforts to harmonise mass production and mass consumption. Changes in patterns of consumption would therefore require changes in the work organization or else render Fordist production inappropriate. Some commentators have argued that such changes in consumption occurred towards the end of the twentieth century, and that now people are increasingly demanding specialized rather than standardized goods.   They argue that instead of mass markets, there are niche markets, and that, to supply these markets, work must be organized in new ways which allow for greater flexibility. They label this new approach  post-Fordism. the main changes from Fordism to post Fordism are flexible production or flexible specialization, customized production , vertical disintegration, cooperative network structure, creativity and innovation, new labour division.   Taylorism and  Fordism  increasing productivity at the expense of employee job satisfaction   Secondly, Fordism is a regime of accumulation. As a stable mode of macroeconomic growth it involves a virtuous circle of growth based on mass production, rising incomes linked to productivity, rising productivity based on economies of scale, increased mass demand due to rising wages, increased profits based on full utilisation of productive capacity and increased investment in improved mass production equipment and techniques. as a mode of regulation, Fordism appears linked to the Taylorist concepts and involves the separation of ownership from control in large corporations with a distinctive multi-divisional, decentralised organization subject to central controls. Thus, it is a mode of social and economic regulation that can also involve monopoly pricing, union recognition and collective bargaining, wages connected to productivity growth and retail price inflation with monetary emission and credit policies orientated to securing effective aggregate demand. Fordism can be seen as a general pattern of social organization. In this context it involves the consumption of standardised, mass commodities in nuclear family households and provision of collective, standardised goods and services by the bureaucratic state. It also manages the conflicts between capital and labour over both the individual and social wage the Taylorist organization of work: increasing intensification of work, deskilling, monotony and alienation lead to forms of resistance which affects the level of the regulatory interest-bureaucracy and increases costs regarding absenteeism, sloppiness and sabotage; Taylorism altered the way work takes place by(175) Fordism altered the way work takes place by(175) T>F or F>T because(150) Taylorism had a widespread influence, but in Japan working in teams was very important Both Taylorism and Fordism are justified in terms of enhancing production / profits but both require links to mass consumption. Both require large-scale production (and hence large-scale consumption) to be viable.   Most effective overall in extending Smiths division of labour altering the way in which work takes place(250) Taylorism was a tool for monopoly capital to strengthen its position

Project Report on Mvat

CONTENT Sr. No. Topics Covered Page No. 1 Section – I Introduction to Value Added Tax. 1 – 12 2 Section – II Value Added Tax in Maharashtra. 13 A. Introduction. B. Registration under Value Added Tax. C. Explaining Value Added Tax. D. Calculating Tax Liability. E. Filing of Return and Paying Tax. F. Records and Accounts. G. Business Audit. H. Appeals. I. Tax Payer Service. J. Recovery, Offences and Penalties. 14 – 16 17 – 21 22 – 27 28 – 36 37 – 44 45 – 48 49 – 51 52 – 56 57 – 61 62 – 66 3 Section – III Appendix. 67 – 69 4 Section – IV Conclusion. 70 5 Section – V Bibliography. 71 WHAT IS Value Added Tax? Value Added Tax is a broad-based commodity tax that is levied at multiple stages of production. The concept is akin to excise duty paid by the manufacturer who, in turn, claims a credit on input taxes paid. Excise duty is on manufacture, while VAT is on sale and both work in the same manner, according to the white paper on VAT released by finance minister Chidambaram. The document was drawn up after all states, barring UP, were prepared to implement VAT from April. It is usually intended to be a tax on consumption, hence the provision of a mechanism enabling producers to offset the tax they have paid on their inputs against that charged on their sales of goods and services. Under VAT revenue is collected throughout the production process without distorting any production decisions. WHY VAT IS PREFERRED OVER SALES TAX? While theoretically the amount of revenue collected through VAT is equivalent to sales tax collections at a similar rate, in practice VAT is likely to generate more revenue for government than sales tax since it is administered on various stages on the production – distribution chain. With sales tax, if final sales are not covered by the tax system e. g. due to difficulty of covering all the retailers, particular commodities may not yield any tax. However, with VAT some revenue would have been collected through taxation of earlier transactions, even if final retailers evade the tax net. There is also in-built pressure for compliance and auditing under VAT since it will be in the interest of all who pay taxes to ensure that their eligibility for tax credits can be demonstrated. VAT is also a fairer tax than sales tax as it minimizes or eliminates the problem of tax cascading, which often occurs with sales tax. These are facilitated by the fact that VAT operates through a credit system so that tax is only applied on value added at each stage in the production – distribution chain. At each intermediate stage credit will be given for taxes paid on purchases to set against taxes due on sales. Only at consumption stage where there are no further transactions will there be no tax credits. Lack of input credit facility in sales tax often results in tax on inputs becoming a cost to businesses which are often passed on to consumers. Sales tax is often applied again to the sales tax element of the cost, thus there is a problem of tax on tax. This is not the case with VAT, which makes it a neutral tax as it provides the least disturbance to patterns of production and the generation and use of income. In addition, the audit trail that exists under the VAT system makes it a more effective tax in administration terms than sales tax as it helps with the verification of VAT amounts declared as due. This is made possible by the fact that one person's output is another's input. As with sales tax imports are treated the same way as local goods while exports are zero- rated to avoid anti-export bias. Notwithstanding the advantages mentioned above, it is worth noting that VAT is a considerably complex tax to administer compared with sales tax. It may be difficult to apply to small companies due to difficulties of record keeping and its coverage in agriculture and the services sector may be limited. To cover the high administration costs, VAT rates of 10-20 per cent are generally recommended. The equity impact of the relatively high rates have been a cause for concern as it is possible that the poor spend relatively high proportions of their incomes on goods subject to VAT. Thus the concept of zero VAT rate on some items has been introduced. Difference between VAT and CST Under the CST Act, the tax is collected at one stage of purchase or sale of goods. Therefore, the burden of the full tax bond is borne by only one dealer, either the first or the last dealer. However, under the VAT system, the tax burden would be shared by all the dealers from first to last. Then, such tax would be passed upon the final consumers. Under the CST Act, the tax is levied at a single point. Under the VAT system, the retailers are not subject to tax except for the retail tax. Under the CST Act, general and specific exemptions are granted on certain goods while VAT does not permit such exemptions. Under the CST law, concessional rates are provided on certain taxes. The VAT regime will do away with such concessions as it would provide the full credit on the tax that has been paid earlier. Under VAT law, first, the dealer pays tax on the sale or purchase of goods. The subsequent dealer pays tax on the portion of the value added upon such goods. Thus, the tax burden is shared equally by the last dealer. To illustrate the whole procedure of VAT, an example is as follows: At the first point of sale, the value of goods is Rs. 100. The tax on this is 12. 5%. Therefore, the net VAT would be 12. 5%. At the second change of sale, the sale value is Rs. 120 and the tax thereon is 15%. The tax that is to be paid at every point is 15%. The input tax is 15%. The dealer will get a credit for first change in sale of 2. 5%– i. e. 15% -12. 5%. Therefore, 2. 5% will be the net rate. At the third change of sale, the sale value is Rs. 150 and the tax on this is 18. 75%. At the last stage, the tax paid is 18. 75%. The Input Tax is 18. 75%. Dealer's get a credit for second change in sale? i. e. 18. 75% -15% = 3. 75%. Therefore, 3. 75% would be the net VAT. This means that VAT is paid in the last point tax under the sale tax regime. Who gains? State and Central governments gain in terms of revenue. VAT has in-built incentives for tax compliance – only by collecting taxes and remitting them to the government can a seller claim the offset that is due to him on his purchases. Everyone has an incentive to buy only from registered dealers – purchases from others will not provide the benefit of credit for the taxes paid at the time of purchase. This transparency and in-built incentive for compliance would increase revenues. Industry and trade gain from transparency and reduced need to interact with the tax personnel. For those who have been complying with taxes, VAT would be a boon that reduces the cost of the product to the consumer and boosts competitiveness. VAT would be major blow for tax evaders, both manufacturers who evade excise duty payments and traders who evade sales-tax. What'll be the tax burden? The overall tax burden will be rationalized as it'll be shared by all dealers, and prices, in general, will fall. Moreover, VAT will replace the existing system of inspection by a system of built-in self-assessment by traders and manufacturers. The tax structure will become simple and more transparent and tax compliance will improve significantly. It will also be simpler and offer easy computation and easy compliance. VAT will prevent cascading effect through input rebate and help avoid distortions in trade and economy by ensuring uniform tax rates. Who pays? All dealers registered under VAT and all dealers with an annual turnover of more than Rs 5 lakh will have to register. Dealers with turnovers less than Rs 5 lakh may register voluntarily. How to pay? VAT will be paid along with monthly returns. Credit will be given within the same month for entire VAT paid within the state on purchase of inputs and goods. Credit thus accumulated over any month will be utilized to deduct from the tax collected by the dealer during that month. If the tax credit exceeds the tax collected during a month on sale within the state, the excess credit will be carried forward to the next month. Which goods will be taxable under VAT? All goods except those specifically exempt. In fact, over 550 items will be covered under the new tax regime, of which 46 natural and unprocessed local products would be exempt from VAT. About 270 items, including drugs and medicines, all agricultural and industrial inputs, capital goods and declared goods would attract 4% VAT. But, following opposition from some states, it was decided that states would have option to either levy 4% or totally exempt food grains from VAT but it would be reviewed after one year. Three items – sugar, textile, tobacco – under additional excise duties will not be under VAT regime for one year but existing arrangement would continue. OTHER CONSIDERATIONS It is imperative that policy makers in considering adoption of VAT should be interested in the economy wide impact of this tax. Special emphasis is often placed on its effect on equity, prices and economic growth. This is particularly important because of the potential effects on consumption of certain commodities that have a direct or indirect effect on labour productivity. VAT effect on inflation In considering the introduction of VAT, countries are often concerned that it would cause an inflationary spiral. However there is no evidence to suggest that this is true. A survey of OECD countries that introduced VAT indicated that VAT had little or no effect on prices. In cases where there was an effect it was a one time effect that simply shifted the trend line of the consumer price index (CPI). To guard against any unforeseen price effects the authorities may consider a tighter monetary policy stance at the introduction of VAT. Distribution effects of VAT Value added tax is widely criticized as being regressive with respect to income that is its burden falls heavily on the poor than on the rich. This emanates from the fact that consumption as a share of income falls as income rises. Hence a uniform VAT rate falls heavily on the poor than the rich. This criticism is valid when VAT payments are expressed as a proportion of current income. However if, following the premise that welfare is demonstrated by the level of consumption rather than income, consumption is used as the denominator the impact of VAT would be proportional. A proportional burden would also be demonstrated if lifetime income rather than current income is used. A lifetime income concept considers the fact that many income recipients are only temporarily at lower income brackets as their earnings increase. In order to address the regressivity of VAT the following measures can be taken: ?The VAT itself can be used to differentiate taxation of consumer items that are consumed primarily by the poor such that they pay less or at zero rate or to tax luxury goods at a higher than standard rate. ?VAT exemptions may also be granted on goods and services that are consumed mostly by the poor. ?Equity concerns may also be addressed through other ways, outside the VAT system, such as other tax and spending instruments of government. This could be in the form of lower basic income tax rates on the poor or some pro-poor expenditures of government. The use of multiple rates of VAT has however been widely discouraged for various reasons. These include: ?The fact that sometimes it is almost impossible to differentiate between higher quality expensive products – e. g. food, consumed by the rich and ordinary products consumed by the poor. Thus any concessions extended may tend to benefit the rich much more than the poor. ?Increased costs of VAT administration as a differentiated rate structure brings with it problems of delineating products and interpreting the rules on which rate to use. ?significantly increased costs of tax compliance for small firms, which are sually unable to keep separate records/accounts for sales of differently taxed items. This results in the use of presumptive methods of determining the tax liability, which leads to more difficulties in monitoring the compliance. The higher compliance cost resultant from differentiation of VAT rates may also be regressive with respect to income since smaller firms w ith lower income tend to bear proportionately more of the burden than do larger firms. Exemptions refer to situations where output is not taxed but taxes paid on inputs are not recoverable. The rationale behind exemptions is to reduce negative distributional effects of tax through the effect on incomes. The effects of exemption may be as follows: ?falling of revenues – exemptions break the VAT chain. If exemptions are granted at prior to the final sale, it results in a loss of revenue since value added at the final stage escapes tax. ?Un-recovered taxation of some intermediate goods may lead to producers substituting away from such inputs thus distorting the input choices of the said producers. ?Exemptions may create incentives to â€Å"self supply† i. e. tax avoidance by vertical integration. Exemptions tend to feed on each other giving rise to a phenomenon called â€Å"exemption creep†. This arises from the fact that each exemption gives rise to pressures on further exemption. For example creating an exemption to reduce the tax burden on a particular commodity or goods may lead to increased pressure for exemption or zero rating of inputs used for the production of such a commodity. Based on the above, it is important that care is taken when introducing exemptions in order to avoid distortions in the production process as well as to minimize revenue loss resulting from such distortions. Given the fact that the primary purpose of VAT is to raise government revenue in an efficient manner and with as little distortions of economic activity as possible, distribution effects are perhaps better addressed by other forms of tax and government expenditure policies which can often be better targeted at these aims. VAT effect on economic growth Economic growth can be facilitated through investment by both government and the private sector. Savings by both parties are required in order to finance investment in a non-inflationary manner. Compared to other broadly based taxes such as income tax VAT is neutral with respect to choices on whether to consume now or save for future consumption. Although VAT reduces the absolute return on saving it does not reduce the net rate of return on saving. Income tax reduces the net rate of return as both the amount saved as well as the return on that saving are subject to tax. In this regard VAT may be said to be a superior tax in promoting economic growth than income tax. Since VAT does not influence investment decisions on firms, by increasing their costs, its effects on investment can be said to be neutral. Features of VAT 1. Rate of Tax VAT proposes to impose two types of rate of tax mainly: a. 4% on declared goods or the goods commonly used. b. 10-12% on goods called Revenue Neutral Rates (RNR). There would be no fall in such remaining goods. c. Two special rates will be imposed– 1% on silver or gold and 20% on liquor. Tax on petrol, diesel or aviation turbine fuel are proposed to be kept out from the VAT system as they would be continued to be taxed, as presently applicable by the CST Act. 2. Uniform Rates in the VAT system, certain commodities are exempted from tax. The taxable commodities are listed in the respective schedule with the rates. VAT proposes to keep these rates uniform in all the states so the goods sold or purchased across the country would suffer the same tax rate. Discretion has been given to the states when it comes to finalizing the RNR along with the restrictions. This rate must not be less than 10%. This will ensure By doing this that there will be level playing fields to avoid the trade diversion in connection with the different states, particularly in neighboring states 3. No concession to new industries Tax Concessions to new industries is done away with in the new VAT system. This was done as it creates discrepancy in investment decision. Under the new VAT system, the tax would be fair and equitable to all. 4. Adjustment of the tax paid on the goods purchased from the tax payable on the goods of sale All the tax, paid on the goods purchased within the state, would be adjusted against the tax, payable on the sale, whether within the state or in the course of interstate. In case of export, the tax, paid on purchase outside India, would be refunded. In case of the branch transfer or consignment of sale outside the state, no refund would be provided. 5. Collection of tax by seller/dealer at each stage. The seller/dealer would collect the tax on the full price of the goods sold and shows separately in the sell invoice issued by him 6. VAT is not cascading or additive though the tax on the goods sold is collected at each stage, it is not cascading or additive because the net effect would be as follows: – the tax, previously paid on the sale of goods, would be fully adjusted. It will be like levying tax on goods, sold in the last state or at retail stage. What's the biggest advantage? The biggest benefit of VAT is that it could unite India into a large common market. This will translate to better business policy. Companies can start optimizing purely on logistics of their operations, and not on based on tax-minimization. Lorries need not wait at check-points for days; they can zoom down the highways to their destinations. Reduced transit times and lower inventory levels will boost corporate earnings. Following are the some more advantage of VAT: – 1. Simplification Under the CST Act, there are 8 types of tax rates- 1%, 2%, 4%, 8%, 10%, 12%, 20% and 25%. However, under the present VAT system, there would only be 2 types of taxes 4% on declared goods and 10-12% on RNR. This will eliminate any disputes that relate to rates of tax and classification of goods as this is the most usual cause of litigation. It also helps to determine the relevant stage of the tax. This is necessary as the CST Act stipulates that the tax levies at the first stage or the last stage differ. Consequently, the question of which stage of tax it falls under becomes another reason for litigation. Under the VAT system, tax would be levied at each stage of the goods of sale or purchase. . Adjustment of tax paid on purchased goods Under the present system, the tax paid on the manufactured goods would be adjusted against the tax payable on the manufactured goods. Such adjustment is conditional as such goods must either be manufactured or sold. VAT is free from such conditions. 3. Further such adjustment of the purchased goods would depend on the amount of tax that is payable. VAT would not have such restrictions. CST would not have the provisions on refund or carry over upon such goods except in case of export goods or goods, manufactured out of the country or sale to registered dealer. Similarly, on interstate sale on tax-paid goods, no refund would be admissible. 4. Transparency The tax that is levied at the first stage on the goods or sale or purchase is not transparent. This is because the amount of tax, which the goods have suffered, is not known at the subsequent stage. In the VAT system, the amount of tax would be known at each and every stage of goods of sale or purchase. 5. Fair and Equitable VAT introduces the uniform tax rates across the state so that unfair advantages cannot be taken while levying the tax. 6. Procedure of simplification Procedures, relating to filing of returns, payment of tax, furnishing declaration and assessment are simplified under the VAT system so as to minimize any interface between the tax payer and the tax collector. 7. Minimize the Discretion the VAT system proposes to minimize the discretion with the assessing officer so that every person is treated alike. For example, there would be no discretion involved in the imposition of penalty, late filing of returns, non-filing of returns, late payment of tax or non payment of tax or in case of tax evasion. Such system would be free from all these harassment 8. Computerization the VAT proposes computerization which would focus on the tax evaders by generating Exception Report. In a large number of cases, no processing or scrutiny of returns would be required as it would free the tax compliant dealers from all the harassment which is so much a part of assessment. The management information system, which would form a part of integral computerization, would make the tax department more efficient and responsive. Value Added Tax IN Maharashtra Quick Flash Back Sales tax was first introduced in India in the then Bombay Province as early as March 1938 where a tax was imposed on sale of tobacco within certain urban and suburban areas. In the year 1946, a general sales tax was introduced levying sales tax at the last stage of sale of goods. The Bombay Sales Tax Act, 1959 introduced in 1959 underwent many changes thereafter and in July 1981, first point tax was introduced wherein goods were classified into three main schedules, broadly covering tax free goods, intermediate products and finished goods. The BST Act was repealed and Maharashtra Value Added Tax Act, 2002 came into force w. e. f. 1st April, 2005 to usher in the progressive value added tax system in place of the old sales tax system. VAT is a progressive and transparent system of taxation which eliminates the cascading impact of multiple taxation through a multipoint taxation and set-off principle. It promotes transparency, compliance and equity and therefore, is both dealer friendly and consumer friendly. VAT being a multi point tax, envisages an increase in the number of dealers and is based on the concept of self-assessment and self-compliance. It is therefore, inevitable that the Sales Tax Department transforms itself into a dealer friendly, focused and dynamic department to cater to the ever increasing expectations of both the Government and the Trade & Industry. Sales Tax Department has taken up the challenge to transform their selves and be available for assisting the dealers in complying with the provisions of the law. They are in the process of installing a state-wide networked IT system to computerise entire tax administration and hope to provide online service to the dealers in due course. They are also realigning their organisational structure to meet the challenges of the new system and stakeholders' expectations. Part1 – Introduction Background Maharashtra is one of the 21 States which have introduced the Value Added Tax (VAT) system of taxation from 1st April 2005. With the introduction of VAT, the Sales Tax Department has moved to a globally recognized sales taxation system that has been adopted by more than 130 countries. The design of Maharashtra State VAT is generally guided by the best international practices with regard to legal framework, as well as operating procedures. Another key factor in preparation of the design of State level VAT is the national consensus on certain issues. The consensus has been arrived at through the discussions in the Empowered Committee of State Finance Ministers on implementation of State level VAT. On 1st April 2005, VAT replaced the single point sales tax. Single point sales tax had a number of disadvantages, primarily that of double taxation. VAT is a modern and progressive taxation system that avoids double taxation. In addition to offering the possibility of a set-off of tax paid on purchases, VAT has other advantages for both business and government. It eliminates cascading impact of double taxation and promotes economic efficiency. It is primarily a self-policing, self-assessment system with more trust put on dealers. It provides the potential for a stronger manufacturing base and more competitive export pricing. It is invoice based, and as a result it offers a better financialsystem with less scope for error. It has an improved control, mechanism resulting in better compliance. It widens the, tax base and promotes equity. VAT in Maharashtra is levied under a legislation known as the Maharashtra Value Added Tax Act (MVAT Act), supported by Maharashtra Value Added Tax Rules (MVAT Rules). VAT is levied on sale of goods including intangible goods. The meaning of â€Å"goods† for VAT purposes â€Å"Goods† means every kind of moveable property including goods of incorporeal and intangible nature but there are some exclusion, such as newspapers, actionable claims, money, shares and securities and lottery tickets. Businesses engaged in. the buying and selling of goods within the scope of the VAT law are referred to as dealers. The meaning of ‘sale' for VAT purposes A transaction of sale can be a: normal sale of goods; sale of goods under hire-purchase system; eemed sale of goods used I supplied in the course of execution of works contract; deemed sale of goods given on lease. The rate of tax applicable to the goods sold under various classes of sales is uniform. However, in respect of normal sales of goods and deemed sales of goods under works contract and specified deemed sale of goods given on lease, the Act provides for an optional method for dischar ging tax liability by way of composition. Being so, the tax liability has to be determined with reference to the option exercised by the dealer for discharging tax liability. Businesses covered by VAT The VAT system embraces all businesses in the production and supply chain, from manufacture through to retail. VAT is collected at each stage in the chain when value is added to goods. 1t applies to al1 businesses, including importers, exporters, manufacturers, distributors, wholesalers, retailers, works contractors and lessors. Part 2 – Registration under VAT Rules for registration If a dealer's annual turnover exceeds the below mentioned threshold, then it must register with the local office of the Sales Tax Department. All Figures in Rs. Category Annual Turnover of Sales Turnover of sales or purchase of taxable goods not less than Fees payable on registration Importer 1,00,000 10,000 100 Others 5,00,000 10,000 100 If the dealer's turnover is less than the above threshold, then they are not liable to collect and pay VAT. However, if a dealer wishes to avail the benefits of being a registered dealer, then they may apply for voluntary registration by paying a fee of Rs. 5,000/ -. Benefits of being a registered dealer As a registered dealer, they are entitled to: ollect VAT on the sales; claim set-off of tax (input tax credit) paid on purchases; Issue tax invoices and, be competitive. Effective date of registration The effective date of registration, that is, the date front which a dealer may charge VAT on sales; will depend on the date they first become liable to pay VAT. This date will be determined as follows: a) New businesses: If a dealer is not registered because their annual turnover is less tha n the threshold; their liability to account for VAT starts from the date they cross the threshold. ) Existing businesses: If a dealer took over an existing business that is registered for VAT, then they will be liable to pay tax on sales from the date they took over the business. c) Voluntary registration: If a dealer is registered on a voluntary basis, then he will be liable to account for VAT from the date shown on the certificate of registration. d) Late registration: If a dealer's turnover has exceeded the appropriate threshold but they have applied late for registration, then he can charge VAT on his sales only after they are registered, i. e. from the date shown on the certificate of registration. Further, having crossed the threshold, it is an offence to be engaged in business as a dealer without a certificate of registration Certificate of registration A dealer should prominently display the certificate and hologram, or a copy of the certificate and hologram, at each place w here they carry can on their business. If a dealer has more than one place of business, then Sales Tax Office will provide them, upon their request, one copy of the certificate of registration and hologram for each additional place of business. If a dealer loses his / her certificate of registration or hologram, or it is accidentally destroyed or defaced, then they may obtain a duplicate copy of the certificate of hologram from their sales tax office. The certificate of registration and hologram is personal to the dealer to whom it is issued and is non-transferable. Changes to business circumstances If, following dealer register, there are any amendments to the details they can be reported while applying for registration, it must done within 60 days of the change, inform us in writing. Where the amendment involves a: change in the name of the business; hange in the constitution of the business without dissolution of the firm; change in the trustees of a Trust; change in the guardianship of a ward; change in the Karta of a Hindu Undivided Family; conversion of Private limited Company to a Public limited Company; change in the place of business; addition of new place of business; formation of a partnership with regard to the business, an application made by a dealer for insolvency or liquidation of their business; an application made against dealer's business for insolvency or liquidation; opening or closing of a bank account; A dealer will not need to make a fresh application for registration. However, the communication to the Registering Authority concerned should be made within sixty days of the change or occurrence of the event. Cancellation of registration A dealer will be liable to pay VAT while their registration is effective. If however, their turnover falls below the threshold, he may choose to apply for cancellation of his registration. However, he should continue to collect and pay VAT in the normal way until his registration is formally cancelled. Alternatively, they may be allowed the registration to continue. If a dealer: discontinue the business; dispose of or sell or transfer the business; A dealer must inform the Sales Tax Department within 30 days of the event. In case of disposal or sale of business, their successor will need to apply for a fresh registration certificate. For cancellation of registration a dealer should submit form 103 which is available with the local sales tax office. It can also be downloaded from the website www. vat. maharashtra. gov. in If the Sales Tax Department cancels the dealer's registration, they must return the Certificate of Registration The cancellation of their certificate does not affect their liability to pay any tax, interest or penalties in respect of any period prior to the date of cancellation of their registration. The obligations of a registered dealer Following are the registration, which dealer's are obliged to: display prominently their certificate of registration and hologram in their place of business, and a copy of the certificate and hologram in each of the other places where they carry on their business; inform their sales tax office of any changes in the details previously reported to the sales tax office; collect VAT on all sales at appropriate rates; alculate the tax due and submit correct, complete and self consistent returns and pay the amount of tax due on or before the due dates; issue tax invoice / bill or cash memorandum to all customers; maintain adequate records and retain them for a period of five years from the end of the tax year to which they relate; extend co-operation to the officer s of the Sales Tax Department at dealer's business premises and provide all assistance to them to discharge their duties. Part 3 – Explaining VAT How VAT works When a dealer sell goods, the sale price is made up of two elements; the selling price of the goods and the tax on the sale. The tax is payable to the State Government. The tax payable on sales is to be calculated on the selling price. The tax paid on purchases supported by a, valid tax invoice is generally available as set-off (input, tax credit) while discharging the tax liability on sales. Example The following example shows how the VAT works through the chain from manufacturer to retailer. Company A buys iron ore and other consumables and manufactures stainless steel utensils; Partnership firm B buys the utensils in bulk from Company A and polishes them; shopkeeper C buys some of the utensils and purchases packing, material from vendor D, packages them and sells the packed utensils for the public. (The sale and purchase figures shown in the example are excluding tax) Particulars Amount (Rs. ) VAT @ 4% (Rs. ) Company A Cost of iron are and consumables 50,000 2000 Sales of unpolished stainless steel utensils 1,50,000 Value added 1,00,000 Company A is liable to pay VAT on Rs. 1,50,000/- @ 4% 000 Less Set Off (2000) Net VAT amount to pay with the Return (Note: Tax invoice issued by Company A will show sale price as Rs. 1,50,000/- tax as Rs. 6,000/-. Therefore, the total invoice value will be Rs. 1,56,000/-) 4000 Partnership B Purchases unpolished stainless steel utensils. 1,50,000 Sales polished stainless steel utensils 1,80,000 Value added 30,000 Partnership B is liable t o pay V AT on Rs. 1,80,000 at 4% 7,200 But can claim set off of tax paid on purchases (6,000) Net VAT amount to pay with the Return 1200 Shopkeeper C Purchases polished stainless steel utensils 1,80,000 Packing material 5,000 Total Purchases 1,85,000 Sales 2,25,000 Value added 40,000 Shopkeeper C is liable to pay V AT on Rs. 2,25,000 @ 4% 9,000 Set off of tax paid on purchases (Rs. 7,200 + Rs. 200 of packing material) 7,400 Net VAT amount to pay with the Return 1,600 Vendor D Tax paid costs Nil Sales 5,000 Value Added 5,000 Vendor D is liable to pay VAT on Rs. 5,000 @ 4% 200 The VAT due on the value added through the chain, i. e. , 4% on Rs. 2,25,000 is : 9,000 The State Government received the tax in stages. The payments of tax were as follows: Particulars Amount (Rs. ) Suppliers of Company A 2,000 Company A 4,000 Partnership B 1,200 Shopkeeper C 1,600 Vendor D 200 Total 9,000 Thus, through a chain of tax on sale price and set off on purchase price, the cascading impact of tax is totally eliminated. Since set-off of tax on purchases is given only on purchases from registered dealers where tax is collected separately, dealer's purchases from unregistered dealers, imports, inter-state purchases and purchases from registered dealers without separate tax collection are not entitled to set-off. In practice, the tax is finally borne by the ultimate consumer, who is not a registered dealer, in this case, people who buy utensils from the shopkeeper C. Rates of value added tax There are two main rates of VAT 4% and 12. 5%. The goods are grouped into five schedules as under: Schedule Rate of tax Illustrative Items A 0% Vegetables, milk, eggs, bread B 1% Precious metals and precious stones and their jewellery C 4% Raw materials, notified industrial inputs, notified information technology products and a few essential items D 20% and above Liquor, petrol, diesel etc E 12. 5% Other than items specified in schedules A, B, C & D. (The list is illustrative and not exhaustive. Please refer to the schedules for details) Difference between tax free goods and exempt sales It is sometimes confusing to have goods that are tax free and sales that are exempt. Both result in no VAT being charged, so what is the difference? Tax free goods do not attract tax at any stage of sale or in any type of transaction, whereas, exempted sales are certain types of transactions, viz. , export sales which are exempt from tax. Composition schemes Certain dealers may find it difficult to keep detailed records for claiming set-off. For such dealers, a simpler and optional method of accounting for VAT has been introduced. This method is the composition scheme. It may be noted that composition scheme is not meant to be a tax concession scheme but only a simplification of tax calculation and payment system. Tax payable by dealers opting for composition in lieu of VAT The following classes of dealers are eligible for option to pay tax under composition: Resellers selling at retail, i. e. , to consumers, Restaurants, eating houses, hotel (excluding hotels having gradation of ‘Four Star' and above), refreshment rooms, boarding establishments, clubs and caterers, Bakers, Dealers in second-hand passenger motor vehicles and Works contractors Dealers engaged in the business of providing mandap, pandal, shamiana. Accordingly, if the dealer has opted for payment of tax liability under composition, the tax liability has to be determined in terms of the guidelines given in the relevant Notification in this regard. Apart from the terms and conditions governing each of the composition schemes, the Notification explains the methodology for computation of turnover liable to tax and the rate of composition payable. A dealer can opt for the composition option at the beginning of the financial year and has to continue to be a composition dealer at least till the end of that financial year. If dealer wishes to switch, over to normal VAT, he can do so only at the beginning of the next financial year. However, a new dealer can opt for composition at the time of registration. In respect of works contract, the contractor can choose to discharge tax liability under composition option. Moreover, such an option can be exercised by the contractor on contract to contract basis. Part 4 – Calculating tax liability In, order to calculate how much tax a dealer has to pay, he must, first determine his turnover of sales and turnover of purchases. The second stage is to ascertain the amount of tax due for payment. Calculating turnover of sales and purchases The turnover of sales is the total of the amounts received or receivable (excluding VAT charged separately) in respect, of the sale of goods, less the amount refunded to a purchaser in respect of goods returned, within six months of the date of the sale. Similarly, the turnover of purchases is the total of the amounts paid or payable (excluding VAT charged separately) in respect of the purchase of goods less (the amounts repaid to dealer in respect of goods they return, within six months of the date of purchase. Credit notes and debit notes. If the sale price, or the purchase price, of any goods is varied and either a credit note or a debit note is issued, then the credit note or the debit note, as the case may be, should show separately, the tax and the price. be accounted for in the period in which the appropriate entries are made in their books of accounts. Special cases Auctioneers If dealer is an auctioneer, then they must include in their turnover, the price of the goods they auction for their principal Hotels There are special rules for hotels and other establishments that provide boarding and lodging for an inclusive amount. The rules provide a formula to enable them to calculate their turnover of sales for meals (food and beverages) which they provide. The supply of food in a restaurant also includes an element of service. But the full amount charged is the sale price for the purposes of calculating turnover and tax. Works contracts VAT applies only to the sale of goods. Supply of services is not liable to VAT. Works contracts are deemed sales where both, goods and services are provided in a transaction and cannot be separated. A works contract may involve the creation of immoveable property, e. g. a house, a factory or a bridge. Some other examples of works contracts are photography, repairs & maintenance etc. To calculate the amount a dealer should include it in their turnover of sales, so that they may deduct it from the total contract price, the costs of labour and service charges. amount paid to sub-contractors. charges for planning and designing, and any architect's fees. hiring charges for machinery and tools. cost of consumables, such as, water, gas and electricity. Dealer's administrative costs relating to labour and services and any other similar expenses. any profit element that relates to the supply of labour and services. Alternatively, in lieu of the deductions as above, a dealer may choose to discharge the liability arising on works contracts by referring to the table prescribed in the rules. If the dealer finds that it is too complicated to calculate the deductions, then they may opt for a composition scheme for any works contract. Sales and purchases not liable to tax under VAT The VAT law specifically excludes from value added tax all imports, exports and inter-state transactions. These transactions are covered by the CST Act. Similarly, transactions that take place outside Maharashtra are not within the scope of MVAT Act. Point of levy in certain cases Hire purchase Where there is a hire purchase agreement or an agreement for sale by installments, the date of the sale is deemed to be the date of the delivery of goods. This is despite the fact that legal ownership of the goods only passes to the buyer after payment of the final installment. If the hire-purchase agreement specifies the interest component then in calculating the sales price, dealer should disregard the interest component included in the agreement. Calculating the amount of VAT due on sales Dealer should also make some adjustments to the total turnover of sales to arrive at the amount on which tax is due. From the total sales one should deduct the total of exports and inter-State sales. the total of sales of goods that are tax free, and branch / consignment transfers to locations in Maharashtra as well as other States. the tax collected. To calculate the tax due, dealer should start allocating their turnover of sales in the return period (net of the above deductions) to the rates of tax they have been charged. They should also ensure that the correct tax rates are applied. The information should be readily available from their records. This gives the total of sales tax due. Calculating the turnover of purchases Records will provide the total figure, but they may not have paid VAT on all their purchases. They must now deduct the total value of imports from out of India. inter-State purchases. purchases of tax free goods. direct purchases from exempted units under the Package Scheme of Incentives. consignment transfers, and local purchased from unregistered dealers. local purchases from registered dealers not supported by tax invoice. The resulting figure represents purchases against tax invoices from registered dealers. Calculating the amount of set off due (VAT paid on purchases) This s the next stage of tax calculation. At this stage VAT is charged on total purchases. Dealer must, however, make some adjustments to this amount for, in certain cases, the full set off of the VAT paid on purchases is not available. Adjustments to tax available for set off If dealer's purchases include goods, used as fuel, or for the manufacture of any tax-free goods, or as packaging for tax-free goods, this go ods should be sold. Then a dealer must calculate the value of those items and deduct tax @ 4% of the corresponding purchase price from the amount otherwise available for set off. Not applicable to PSI dealers other than the New Package Scheme of Incentives for Tourism Projects, 1999 and also to manufacturers of tax-free sugar or fabrics covered by Entry A 45 and where such goods are sold in the course of export falling under section 5 of the CST Act, 1956). Similarly, if the goods are stock transferred by way of branch / consignment transfer to a place outside the State, deduct tax @ 4% (1 % in respect of goods covered by Schedule B) of the corresponding purchase price from the amount otherwise available for set off. Dealer must also make further adjustments as follows: – If they have been used any goods (other than capital assets) as part of a works contract for which they have been opted for payment composition @ 8% on the total contract value, they must also deduct 36% of the amount from the set off otherwise available (4% of purchase price in respect of construction contracts for which they have been opted for payment of composition @ 5% on total contract value). Where a dealer's sales are less than 50 % of their gross receipts, then they can claim set off only on those purchases of goods or packing materials effected in that year where the corresponding goods are sold within six months of the date of purchase or consigned within the said period to another State by way of stock transfers. In respect of office equipment, furniture or fixtures which have been treated as capital assets, a dealer should reduce set-off otherwise entitled by an amount equal to 4% of the purchase price. If a dealer is the retailer of liquor vendor and its actual sale prices are less than the Maximum Retail Price, there is a special formula for calculating the amount of the adjustment. Effectively this means that, if a dealer sells at 75% of the MRP then they can claim set off only to the extent of 75% of the tax paid. A dealer can not claim any set off for the tax paid on any purchases that remain unsold on the date when business discontinues. All this information should be available from their records, including tax invoices and bills or cash memorandum they have issued, and the tax invoices they have received. Set off not available There are various items on which set-off is not available such as, goods of incorporeal or intangible character other than those specified, passenger motor vehicles, motor spirits, crude oil, building material used for construction etc. Conditions for claiming set off A dealer can claim set off only for VAT paid on purchase if they have a valid tax invoice for that transaction and they had maintain account of purchases showing the specified details. Tax payable The amount of set-off admissible can be adjusted against tax payable. The amount of net tax payable is the total of sales tax collected on sales less the set-off available. Refund cases If the amount of set-off admissible during the period is more than the amount of tax payable, then dealer's return would reflect a balance refundable to the dealer. The amount of set-off can be more than the tax payable for a variety of reasons, such as Inputs are taxable at higher rate as compared with the rate of tax on output. Outputs are tax-free goods while inputs carry tax. Outputs are export sales. Outputs are CST sales which are taxable at the concessional rate of CST. Manufactured goods or trading goods are transferred to branches outside the State or are sent on consignment transfers. Apart from part of the admissible set-off which can remain unutilized, excess credit can be on account of: unutilised portion of tax deducted at source or refund payment order or ad-hoc payment made is more than tax payable. Whatever may be the reason for credit in excess of tax due and payable during a tax period, dealers are eligible to claim refund of such excess credit. For the purpose of granting refund, dealers have been classified under two categories viz. a) specified class of dealers and b) other dealers Refund to specified class of dealers Specified classes of dealers are : – Exporters exporting out of the country or dealers selling to an exporter against form H. A unit set-up in SEZ or STP or EHTP or a 100% EOU unit. These units have to be certified by the Commissioner of Sales Tax. An Entitlement Certificate holder availing of the benefit ofincentives under the Package Scheme of Incentives (PSI). Specified class of dealers and the dealers who have made a sale in the course of inter-State trade or commerce and in the return he has shown any amount to be refundable are eligible to claim refund in each of the returns filed by them. Full amount of excess credit can be claimed as refund due for the return period. The dealer eligible to claim refund has to file refund application in Form 501. The application has to be filed with the Refund Branch. The Refund Branch may ask for Bank Guarantee and any relevant information for checking correctness of refund claimed. Normally, refund would be granted within one month from the receipt of Bank Guarantee or within three months from the date of receipt of refund application in Form 501, or as the case may be, the date of receipt of the additional information, whichever is later. Refund to other dealers Other dealers are not eligible to get refund in each of the return filed. They are required to carry forward excess credit to the next return within the same financial year and claim refund of excess credit in the return for the period ending March. The dealer claiming refund in March return has to make refund application in Form 501. The application has to be filed with the Refund Section. Normally, refund would be granted within six months of the end of the year to which the return relates. However, refund would be granted within six months to the new dealer's at the end of the year succeeding the said year. Audit of refund claims The refund granted to dealer would be subject to audit by the Refund Audit Section. The audit may be taken up before granting the refund or after the refund is granted. Normally, refunds made against Bank Guarantee would be taken up for audit after the refund has been granted. During the course of the audit, the audit team will check dealer's eligibility to claim refund and the correctness of the amount of refund claimed by them. Interest on delayed refund No interest is payable on the refund due to a dealer as per returns filed by a dealer. However, if granting of refund is delayed beyond the above mentioned periods, dealer is eligible for interest for delayed payment. Simple interest at the rate of 6% per year would be payable for the period from the due date to the date of refund. Some tips for getting timely refund Dealer's claim of refund would be processed faster if: – They had filed the return with the Returns branch as per the prescribed time schedule. The return filed by the dealer's should be correct, complete and self-consistent. They should have claimed refund as per the appropriate periodicity. The amount of refund due to them should be computed correctly. Refund application in Form 501 is filed with the Refunds branch in time. They should have promptly furnished Bank Guarantee and other details when called for. They should keep ready all the documents and records for audit. They should file the return for a period for which they are required to file. Thus, if they are required to file a quarterly return, but they file a monthly return, then the refund would not be granted for the monthly return. In order to be eligible for refund, they would have to file a quarterly return. Part 5 – Filing a return and paying the tax VAT is a self-assessment system and dealer's are expected to make self assessment for a given tax period and declare their VAT liability by filing returns. The returns have to be filed in the prescribed form and by the specified dates. Further, they are also required to pay the tax due as per the return filed. In Maharashtra, return form is return-cum-chalan. As such, filing of returns along-with payment of tax on or before the due date at the notified bank would be considered as sufficient compliance. However, where any amount of tax including interest or penalty is due as per a fresh or revised return, then they should first pay such amount in Government Treasury and file the return in the local office of Sales Tax Department along with a self attested copy of the chalan. If no payment is due or a refund is claimed as per the return, they are also required to file the return in the local office of the Sales Tax Department. Return forms The return forms prescribed are as follows. Form No. To Be Used By 221 All VAT dealers other than dealers executing works contract, dealers engaged in leasing business, composition dealers (including dealers opting for composition only for part of the activity of the business), PSI dealers and notified Oil Companies. 222 All composition dealers whose entire turnover is under composition (excluding works contractors opting for composition and dealers opting for composition only for part of the activity of the business). 223 VA T dealers who are also in the business of executing works contracts, leasing and dealers opting for composition only for part of the activity of the business. 224 PSI dealers holding Entitlement Certificate (Transactions by PSI dealers relating to the business of executionof works contracts, leasing, frading and composition only for part of the activity of the business to be included in a separate return in Form 223). 25 Notified Oil Companies (Transactions by OIL Companies relating to the business of execution of works contracts, leasing and composition only for part of the activity of the business to be included in a separate return in Form 223). A dealer can refer to the instructions given in the form before filling the return. Please ensure that the return for a tax period c overs all the transactions of sales, purchases, branch transfers received, branch transfers made etc. Further, they must ensure that all the columns of the return are duly filled in and are clearly legible. If a particular column is not relevant, please do not leave it blank but mention† not applicable†. The return filed by them must be correct, complete and self-consistent. Time schedule for filing returns Periodicity of filing returns is as follows: – Retailers who have opted for composition should file six-monthly returns. Newly registered dealers should file quarterly returns until the end of the year in which they first register. All package scheme dealers should file quarterly returns. All other dealers should file returns as given below :- Dealers whose tax liability in the previous year was less than Rs. 1,OO,OOOj- (Rs. 1lakh) or whose entitlement for refund was less than Rs. 10,OO,OOOj- (Rs. 10lakh) should file six-monthly returns. Dealers whose tax liability in the previous year was more. than Rs. 10,00,000- (Rs. 10lakh) or whose entitlement for refund was more than Rs. l,00,00,000- (Rs1crore) should file monthly returns. All other dealers should file quarterly returns. Filing and payment dates for return-cum-chalan are as follows: Return Frequency Filing / Payment date Monthly 21 days from the end of the return period Quarterly 21 days from the end of the return period Six Monthly 21 days from the end of the return period Scrutiny of returns filed The return filed by the dealer should be correct, complete, and self-consistent in every respect. The Sales Tax Office will check the return to ensure that there are no obvious errors in consistencies or contradictions in calculations. If this check reveals discrepancies, then the dealer's will be advised and invited to submit a fresh return. The department will issue this defect notice within four months of receiving their return. Then they should file their fresh return within 30 days of the notice. If they fail to do so, it will be deemed not to have filed the return within the time allowed, and will so liable to a penalty charge. At the same time, as the department issues the defect notice, dealers will be sent a ‘show cause' notice, explaining that a penalty may be imposed. Offences relating to filing of returns and payment of tax The following are the offences liable for interest / penalty / prosecution etc. Short- payment / non- payment of tax due Failure to file returns Delay in filing returns Knowingly furnishing false returns Filing of incorrect or incomplete or inconsistent returns Consequences for filing a return, which is not correct, complete and self-consistent Each of the returns filed by them is checked to confirm that the same is correct, complete and self-consistent. In case the return is defective, a defect notice is issued by the Returns Branch pointing out the error or the omission. On receipt of the notice, it is required to file fresh return which is correct, complete and self-consistent and should also pay differential tax due, if any. The return filed by them in response to defect notice is termed as Fresh Return and the dealer should indicate so on the return in the space provided for the same. Fresh return rectifying the defects has to be filed within the time limit specified in the defect notice. Failure to comply with the notice would be construed as non-filing of return and consequently, a unilateral (ex-parte) assessment order would be passed. Failure to file a return If dealer's fails to file a return within the time allowed, then they are committing an offence and, in addition to any tax and interest that may be due, which is liable to a penalty. As no return has been filed by them, a unilateral assessment without giving them a notice will be made. This unilateral assessment order is non-appealable. However, they can get this assessment order cancelled only by filing the return and paying the tax and interest due as per the return. For this purpose they should file application in Form 304 and submit to Returns Branch. Paying the tax due All the dealer's or the person must file their return and should pay the tax due, in a bank that is authorized to accept the return. If they are required to file a revised return, and the tax due exceeds the amount which they had paid when submitted earlier form, then they should pay the balance amount which is due now. The bank will give them an acknowledgement of the receipt of their return and payment. If there is any doubt that where to file the return and pay the tax due, then can ask to their local sales tax office. Revised return Subsequent to filing the return, in case dealer notices any error or omission, then they can file a revised return before expiry of eight months from the end of the financial year to which the return relates or before a otice for assessment is served, whichever is earlier. Such return should be accompanied by payment of tax and interest, if any. In case the return filed by them is a revised return, then they should indicate it on the return form in the space provided for the same. The various types of returns and their description have been summarised as under: Type Of Return Descr iption Original The return filed by the dealer originally along with the payment in the bank. Fresh The return filed by the dealer after the department issues a defect notice. Revised The return filed by them to correct any error or omission. Filing of returns in special cases The first return for the newly registered dealer is for the period up to the end of the quarter containing the date of its registration. Example 1 The turnover exceeds the threshold on 1st November. Then they should apply for registration, which is granted on 30th November and the date of effect is 1st November. The first return is for the quarter ended 31st December covering the period 1st, April to 31st December; and the second return is for the quarter ending following 31st March. Example 2 If turnover exceeds the threshold on 1st November. But dealer apply late for registration i. e. on 10th December, and the registration is granted on l0th December, then the date of effect registration is 10th December i. e. , Date of application. The first return is due for the quarter ending on 31st December (covering. the period 10th December to 31st December).. Filing of return in case of cancellation of registration Dealer's registration may be cancelled if they discontinue, transfer or sell the business. They may also choose to cancel their registration if their turnover falls below the threshold limit. Example If dealer's file the returns quarterly and their, last return was for the quarter ending 30th September. If a dealer closes the business on 15th November, then their final return will be for, the period 1st October to 15th November. The return should be filed within one month, that is, before 15th December. Dealer under the Package Scheme of Incentives If dealer's hold a Certificate of Entitlement granting an exemption from payment of tax or deferment of payment of tax, it should be for the unit which is eligible for the incentives, file a quarterly return, in Form 224. They must continue to file quarterly return till the Certificate of Entitlement remains valid. When the validity of the Certificate of Entitlement ends, then dealer must file: – a quarterly return, in form 224, for the period from the first day of the quarter in which the event occurs to the date the Certificate of Entitlement ceases, and a quarterly return, in form 221 or 222 or 223 as the case may be, for the remainder of that financial year. For succeeding years, the period and frequency of the returns will be determined on the basis of the tax liability or entitlement for refund of the preceding financial year. Filing multiple returns Dealers are required to file a single return at its principal place of business for all its businesses or places of business. If they desire to file separate returns for separate places / divisions, then they must apply for Form 211 for permission to file multiple returns. Dealer should ensure that correct, complete and self-consistent returns are filed at all the locations in the State. Tax deduction at source by an employer in a works contract The works contractor is obliged to pay the tax on the works contracts executed by him. However, the employer i. e. he notified person who has engaged the works contractor is obliged to deduct tax at the specified rate from the amount payable to the works contractor, excluding the amount of tax, if any, separately charged or service tax levied by the contractor.. The tax amount so deducted and paid to the Government treasury IS considered as a payment made on behalf of the works contractor. The employer is required to d eposit this tax and issue a certificate of tax deduction at source in the prescribed format based on which the works contractor is allowed to take the credit of the same while discharging his tax liability. Part 6 – Records and accounts Keeping records Proper records are an essential part of effective management and control of their business. Dealers are required by law to keep a true and accurate account of the transactions effected by them. This will also help them to correctly quantify their tax liability or refunds, as the case may be. They should keep all their accounts, registers and documents relating to their stocks of goods, purchases, sales and deliveries of goods, at their place of business. If they wish to keep them at a different location they may do so, but only if they have the permission of the Commissioner of Sales Tax. Nature of records Normally, this department will not expect them to keep any special records for VAT purposes. However, the records that they do keep should have sufficient details to enable them to correctly calculate the amount of VAT due for payment and file their return. If Sales Tax Office happens to find that their records are not properly maintained, then they will issue a notice, informing dealers about what records they must keep. A dealer should maintain the following records: – to identify the nature and value of goods purchased and sold; distinguish between – local sales, interstate sales & exports. local purchases, interstate purchase & imports. ndicate value of – sale and purchase of tax free goods. sales exempted from tax. purchases from URD. rate-wise purchases & sales. local purchases from registered dealer with VAT shown separately. record payments for the purchases and sale of goods in cash book / bank book. include a summary of VAT paid separately on purchases, VAT charged on sales, VAT paid to the State treasury and VAT refundable / refunded to the dealers. contain adequate proof that goods have been exported or imported; be supported by invoices for all goods purchased, and copies of invoices, and bills or cash memoranda, issued for goods sold. Tax invoices and memoranda of sales or purchases As a registered dealer, they should issue a tax invoice when they sell goods to another registered dealer and charge VAT. For sales made to consumers and unregistered dealers, they must issue a tax invoice, or a bill or cash memorandum. However, if a dealer is a composition dealer other than a works contractor, they must issue a bill or cash memorandum only and not a tax invoice. Failure to issue a tax invoice or a bill or cash memorandum may result in a penalty. The tax invoice must contain: – he words ‘Tax invoice', printed in bold letters at the top or at a pro

Field Observation Report

Field Observation Report of Introduction to Public Speaking On the basis of my ambition to one day become a political figure in the United States government, I was obliged to observe Introduction to Public Speaking, COM 110. Dr. Jason Ingram teaches Introduction to Public Speaking on Tuesdays and Thursdays from 6:00 pm to 7:15 pm in the College of Communications on North Campus.I conducted my observation of COM 110 on September 8 and 10. According to the course syllabus, the main goal of this class is to educate students on the fundamentals of public speaking in order to advance critical reasoning skills and gain the ability to present a well-constructed speech (Ingram, course syllabus). The main concept of my study was to learn how reading, writing, and speaking were entailed in this course’s curriculum.COM 110 dignifies the meaning of effectively communicating a message to a particular audience group as a purpose for creating various types of speeches and strategies. It is e mbedded in the field of communication and the discipline of the social sciences. This course incorporates applications of strategic planning and critical thinking for supporting arguments, the determinants of the rhetorical situation, and audience awareness used to enhance communications skills for use in any public environment.Through the practice of organizing the speech, reading and researching proven techniques and strategies for effectively communicating a message to the audience, and applying concepts in speeches and conducting peer reviews for future benefit, students are able to hone exceptional speaking techniques that they can later resort to in interviews, public forum, or any other oral aspect in their professional career. By taking advantage of the opportunity to observe Dr.Ingram’s class on two separate occasions, through interviewing a undergraduate and the professor himself, and by examining how public speaking impacts various careers, I came to grasp the noti on through an assortment of ways why this course is an exceptional representation of its field and discipline. After a short amount of time observing Dr. Ingram’s class, I came to comprehend how COM 110 helped students develop strong oral and critical thinking skills. This class can generally be classified as mainly a presentation-based class with some occasional lectures focusing on key concepts.The main educational purpose of lecture-based days was to reinforce the content involved in the chapters that were assigned for homework the previous class. Dr. Ingram carried out this theme by having open class discussions on specific material and generalized public speaking topics. He stated in his syllabus that every class was an opportunity for someone to voice their opinions, to actively participate in an effort to create an intellectually stimulating learning environment and to ask questions or request additional information on material that is unclear (Ingram, Course Syllabus) .The professor also encouraged small group work in order to learn the fundamental format of how speeches were traditionally conducted. The two class days that I attended however, focused primarily on presentations. Dr. Ingram commenced class by reviewing the rubric as criteria for which impromptu speeches were based off of. Prior to handing out topics to the students, he encouraged all of them to stand up and babble or recite mostly consonant-based phrases like sally sells sea shells down by the sea shore in an attempt to warm up their mouths for speaking.Once the students were fully capable of projecting their voices he assigned topics accordingly to the people who had signed up to present for that particular day. He allowed them to choose one topic out of three possible categories written on note cards. After the student chose the topic, he or she was given a maximum of eight minutes to prepare for the speech. During this time frame the professor strongly encouraged that the stude nts go into the hallway so that they could carefully formulate a plan to successfully present their impromptu speech to the class.Dr. Ingram also suggested reading the newspaper or other news-based text in order to have an additional source to relate the topic back to. Once the preparation time ceased, the students had three to four minutes to present their topic to the class referring to nothing but a few note cards. Each of the speeches were critiqued by two of their fellow classmates in an effort to relay to the student how they could effectively improve their presentation style for the future.This structure based upon which learning critical thinking and strategic skills are applied to presentations with the addition of receiving feedback from other students allows the presenter to truly build their communication skills. The class objectives of COM 110 are â€Å" to understand elements of the rhetorical situation characterizing public speaking; advance well-supported arguments using sound reasoning and evidence; craft messages for various types of audiences; construct effective feedback for peers and for self-improvement; and understanding some of the persuasive strategies at work in political messages,† (Ingram, Course Syllabus).Dr. Ingram addresses these course goals through an array of methods upon each class meeting. The best technique that he used for carrying out the course objectives was by having the students perform different types of speeches for the rhetorical situation and receiving feedback on their performance. Over the course of the semester the professor plans to have the students present a wide variety of topics through the use of impromptu, informative, persuasive, and call to action based speeches.He encourages that students dress accordingly for their speech so that they are able to place more emphasis on the specific message they are conveying to the audience. Since COM 110 is an introductory-based course, the 23 students in my session were comprised primarily of freshmen and sophomores. The small class size signifies that the learning environment is much more active and participation-based than traditional introductory courses. Most of the students that attended the class were seeking differing majors but needed a communications elective in order to fulfill the General Education Program (GEP) requirement.Since this course was an introductory class, the professor did not require the students to have any prerequisites or prior knowledge of public speaking. Aside from the students majoring in radically different subjects, they all had the common goal of wanting to develop exceptional public speaking skills for their future careers. In addition to conducting a comprehensive observation on COM 110, I had the opportunity to gain insight from a sophomores’ perspective of the class along with how the student planned on utilizing these skills in his future career.In addition to this, I also conducted an int erview with Dr. Jason Ingram to learn how his past experience helps to inform the students about all the intricacies of public speaking. I first interviewed Michael Esposito, who is currently a sophomore in computer programming. When asked about why he originally signed up to take COM 110 he bluntly stated that it was â€Å"a required course in order to graduate with a Bachelor of Science in Electrical Engineering,†(Esposito).After hearing this I was inclined to discover his initial impressions and experiences on the class. He enlightened me by explaining that â€Å"the class seems to be of appropriate difficulty for an introduction class, but is graded more on an artistic basis instead of the effectiveness of each speech,† (Esposito). Based on his personal experience, he felt that in order to meet these expectations a student must first master the task of feeling comfortable in front of the class while simultaneously conveying his or her thoughts in an appealing way.W hen asked what skills he deemed were required to be successful in the class he responded that â€Å"confidence and logical reasoning are the most important traits used in speaking in order to convince the audience that the speaker is not wasting their time,† (Esposito). He emphasized that if the speaker presented a flawless argument or appeared meek in any form that they were deemed unqualified for the speech and deserved to be tuned out by the audience. After hearing this, I was intrigued to find out how exactly he planned to benefit from taking COM 110.He reveled to me that he planned to use this class in order to â€Å"convey his engineering ideas to lawyers, politicians, and administrators without using so much jargon that only another engineer could understand,† (Esposito). He went on to inform me how everyone can benefit from taking COM 110 since the traits acquired from the class are universally sought after by a virtually every employer. Once I had an idea how the students in COM 110 planned to apply their communication skills for their future, I opted to find out how the lecturer honed his past experience to educate the undergraduates about public speaking. I interviewed Dr.Jason Ingram, the instructor of COM 110, who holds an MA and a PhD in communication and is an assistant professor in the College of Communication. In an effort to discover why Professor Ingram teaches his class slightly different from other COM 110 classes, I questioned him about his past experiences in communication. He inherently told me that he has â€Å"been the assistant director of debating and held several debate summer workshops in the past,† (Ingram). To my surprise the focus of his research was largely based off of rhetorical and cultural studies. He focused on how the application of political values affected ommunication through observing works in popular culture with a rhetorical point of view (Ingram). In addition to his past experience, I was inte rested to find out how Dr. Ingram incorporated reading and writing into a communication-based class. He informed me that the reading material assigned for homework built a strong foundation for being able to conduct a speech for the rhetorical situation. He also explained that the only writing assignment aside from constructing speech formats was a topic proposal paper where the student was to use their creativity and perform a speech on a topic that they deemed either interesting or educational.Even though COM 110 stresses the importance of developing critical thinking skills for communication, it is imperative to understand how it is applied to various careers. Any student at NC State can expect to benefit from the skills that one acquires in this class. Regardless of career, public speaking is viewed as a vital component of communication where interaction with the audience is used in order to create a connection (Zarefsky 7). Despite preconceived notions about public speaking bei ng a one way message system, it is quite the contrary.The speakers’ ideas are often tested by interacting with the audience, while the listeners’ knowledge and comprehension of the topic are refined through communication with the speaker (Zarefsky 7). As a result, public speaking is often viewed as a constant communication process where messages and gestures are often exchanged between the speaker and listeners (Zarefsky 7). Taking into account the importance of creating a connection with the audience in the rhetorical situation, one can say that public speaking has unparalleled value in every career.The preconceived notion of COM 110 by every student required to take it at NC State can be insignificant, however, it proves to have intrinsic value. This course not only teaches the fundamentals of public speaking but also represents the field of communication in a variety of manners. Through the use of developing critical thinking skills and applying them to the rhetoric al situation, increasing confidence in speaking in front of an audience, and creating a connection with the audience, students in COM 110 gain vital skills that aid in their quest to mastering all aspects of ommunication. Hence, COM 110 is a brilliant representation of the communication field that provides students with an extraordinary skill set for any career. â€Å"Cited References† Esposito, Michael. E-mail interview. 13 Sept. 2009. Ingram, Jason. Communications 110: Introduction to Public Speaking. Course Syllabus. Fall semester 2009. Ingram, Jason. Personal interview. 10 Sept. 2009. Zarefsky, David. Public Speaking: Strategies for Success. Boston: Pearson Education Inc, 2008.

A Problem Of Poaching in Africa - Free Essay Example

Sample details Pages: 6 Words: 1946 Downloads: 5 Date added: 2019/08/15 Category Society Essay Level High school Tags: Animal Poaching Essay Did you like this example? Poaching is a complicated problem in Africa. Although millions of acres are set aside by the African governments to protect wildlife, poaching, or the illegal hunting of protected animals, continues to be heavy, (The World Its People, p577).  Ã‚   Poaching has become a huge problem for various reasons and we need to put an end to it. Poachers must be and can be stopped with the right efforts and movements. Don’t waste time! Our writers will create an original "A Problem Of Poaching in Africa" essay for you Create order Around the world, many people are making efforts to stop this poaching/trafficking debacle. Such measures include passing laws forbidding the buying and selling of wildlife trafficking, training and equipping troops to outsmart the poachers, training dogs to be able to sniff out a trafficker, strengthening law enforcement, providing protection of endangered animals through conservation land, and educating the public. Why are people so interested in killing these endangered animals?   Most of the animals are being killed for their tusks and horns as well as other things, like pelt in order to be sold.   African elephants are being killed for their ivory tusks.   Ivory is used to make jewelry, piano keys, billiard balls, eating utensils, religious figurines, and trinkets. Many elephants are being killed when all of these items could be made using other substances. Due to these actions, over 35,000 elephants are killed per year because of some trinkets (AWF). Other animals that are also killed more often than they should be are black rhinos, mountain gorillas, and Grevys zebras. In the past 50 years, the black rhinos population has dropped over 97% from what it used to be (AWF). The rhino horn is sold to people who believe it has magical medicinal powers that can cure hangovers, cancer, impotence, and fevers. (Library Vol 1, 2008).   Out of all four of those beliefs, none of them have been p roven to work. The rhino horn is one of the most expensive items on the planet pound for pound. Currently, a pound of rhino horn is going for 60,000 dollars, compared to gold at 18,000 dollars. (AWF) As for other endangered animals, only 1,000 mountain gorillas remain across the face of the Earth. Some researchers/officials have noticed a rise in infant gorilla trafficking. On the black market, a baby gorilla skin has been said to be sold for 40,000 dollars. The amount of Grevys zebras left in Africa is appalling, only 1,000 are let and is a record low. These zebras are being hunted for their skin so people can flaunt as a jacket or another article of clothing (AWF). Out of those four animals, two of them are critically endangered. Those two are the mountain gorilla and the black rhino (AWF). Why is it so important to stop the poaching/ trafficking of animals?   As a human race we have a moral obligation to share the earth with the other living species.   If we value human rights, we should value the rights of other living creatures.   We need to help those other species survive, not help them become extinct.   These animals have the right to live freely in their own natural habitat. Another reason is that the illegal trading of these animal parts is similar to the illegal trading of drugs and weapons.   Crime on wildlife is a large business that is lead by dangerous illegal organizations. Funds from these illegal trades help to finance many international terrorist groups.   It helps to pay for the training of soldiers/ terrorists   and weapons.(OIPA,4 ) These organizations are killing elephants then trading the ivory for over billions of dollars per year. This funding can help terrorists become more advanced. An example of this was an attack at a Kenyan mall in 2013, by Al-Shabaab, who has been proven to trade ivory on the black market (Fieldstadt, 11). Many poachers are becoming more and more advanced using new weapons, tracking devices, night vision goggles, and many other tools. The poachers are getting smarter in other ways, too. They have found loopholes in hunting laws by hiring tourists to shoot the animals, while the poacher collects the commission.   They are also finding new ways to sell the items to buyers on the black-market. How can poaching be stopped? Eliminating poaching has proven to be very challenging. Many ideas have been tried, some with more success than others.   Creating laws to stop poaching and trafficking is one way. Using technology to fight the war on paching has proven to be helpful.   Improving security and law enforcement at key locations in the trade chains would help crack down on trafficking.   Educating people on what is happening as a   result of poaching is a start and has proven to be beneficial. Countries around the world have been attempting to address the problem by passing laws. Both international laws and national laws help to protect endangered species.   Countries have helped by calling for conservation of the habitats of these animals. They have set up refuges, parks, and preserves to help these animals.(Library Vol 1, 2008)   In 1989, CITES (Convention of International Trade in Endangered Species) put a hold on the international commercial trade of African elephant ivory.(Breyer, 5)   Also, in 1989, President Bush passed the African Elephant Conservation Act (AECA) that banned importing ivory from the African elephant. Since this was passed the market for ivory has collapsed in the United States. (Breyer,5 ) At the time, 70% of illegal ivory was then going to Asia (mostly China Thailand). This has since changed as of the end of 2017, when China finally banned the buying and selling of ivory.   For the first time China destroyed its ivory stocks, sending the world a message that ivory trading would not be tolerated. (Dodo) It also sent the message to its people that the elephants lives were more important than the Chinese culture of ivory carving.   Laws such as these has drastically reduced illegal trading and helped the elephant population increase. Training troops to stop the poaching in Africa is a necessity. Due to the advanced technology that poachers have established, many high impact weapons are being dealt out to these poachers, making them more and more difficult to stop. The poachers are using Ak-47s, grenade launchers, and even night vision goggle.   Enforcing the law is challenging because these animals live in remote area which make it difficult to find poachers.   Preparing troops to stay one step ahead of the poachers is essential two important reasons 1) stopping the killing of the animals and 2) keeping themselves safe.   Matching the weaponry of these people vital. Arming them with drone technology that uses night vision and thermal imaging is a huge help.   This allows the troops to keep better track of how the animals are moving as well as if there are poachers in specific hard to reach areas.   Sending wildlife rangers that are trained and prepared to find poachers is a must. Another new, high-tech alarm system helps rangers in South Africa stop poachers from killing rhinos, elephants, and other wildlife. This alarm system uses a combination of things, like WiFi, thermal cameras, scanners, and sensors, to make it a lot easier to catch the predator first. Bruce Watson says Our intention is to eradicate all forms of poaching throughout Africa, India, and Asiaand the ocean.(Neme, 24) The main goal of this new electronic device is to wipe poaching off the face of the earth. Experiments with this product have gone well, it is safe to say that this new technology will be a game changer for the good guys. Having trained sniffer dogs that will be able to sniff out the illegal substance that was taken from a carcass will be a huge help. These sniffer dogs would sit at major transportation sites, like an airport, and just wait for a criminal to pounce on and stop them in their tracks. Utilize the DNA of tusks that have been seized to help figure out the geographic origins to help locate where hot spots for poaching in Africa are.   This will help show law enforcement where to go to shut down ivory trade. (Nuwer,51 ) Adding support at these various checkpoints throughout the known illegal trade routes will   catch these criminal. Along with that, is making sure law enforcement is strong and honest.   Guards who are suspected of taking bribes needs to be removed.   Weak or corrupt authorities who can be easily threatened or bribed should not be allowed to hold such positions.   Having weak enforcement of poaching laws does not help the efforts of abolishing poaching. Another way to stop poachers/traffickers in their footsteps is by conserving the land around these affected animals. Many people have taken steps to make this an easier target to accomplish. A major goal of the African Wildlife Foundation is to put GPS trackers onto the species and track their movements so they could preserve the land that these animals walk on, therefore the selected animals will have tranquil living space and be able to carry out the natural processes of life. This way the people that live very close to these animals can protect them by all means and have an incentive. Conserving the land will help animals stay safe because the land that they wonder and walk around on will then be protected and not allow these poachers to have easy access to kill these animals. With the land as national parks and such, animals will be able to roam as much as they want and not have to worry about getting killed. These animals also help develop a better ecosystem for the planet. Elep hants eat shrubs or grass to prevent it from overgrowing, and their waste fertilizes soil. Lastly, a major step that needs to be taken to stop poaching is educating the public. If the everyday human is knowledgeable about this topic, then it will be easier for poaching to be stopped. For instance, if no one bought ivory or used it anymore, the need for it would go away, those animals would no longer be in danger. People could also get involved and donate money to the programs that help these animals in danger. The African Wildlife Foundation talked about the measures they have taken to make people understand the situation, Outside the continent, we have launched successful public awareness campaigns in China and Vietnam informing consumers about the brutal truths behind the global wildlife trade. We also advocate for governments and protection agencies to ban international trade in wildlife parts like ivory and introduce stiffer penalties for criminals, (AWF). Another resource that helps spread the word about animal poaching/ trafficking is Roots Shoots.   It is an orga nization that Jane Goodall started to help promote understanding of the environment in youth and create future leaders that show compassion towards wildlife. Poaching in Africa can be stopped with the important steps that need to be taken.  Ã‚   The most effective way would be if everyone around the world need to boycott ivory products. We can do this by educating people about the senseless, devastating loss of animals.   If that happened, it would end the need for illegal killing of these innocent animals. Also, if countries would work with each other to tackle this problem that spans across various countries we would have a better shot.   Trained rangers and dogs will help the poachers be stopped. The newly developed GPS technology can make it easier to track both the animals and the poachers.   Lastly, as long as the public cares enough to conserve the land that these animals are on, the government trains people to protect it, and if the people across the globe are aware, poaching will be stopped. Overall, it is going to take a combination of all of these ideas to end poaching as we know it today, but it can be done!