Tax and Central Excise

ICWAI Objective Type questions and Answers on Indirect Tax 1. Multiple Choice Questions (1) Excise duty can be levied on those goods which are a) Manufactured in India b) Sold in India a) Removed from the factory b) None of the above (2)Dutiable goods means a) Goods are subject to Central Excise duty b) Goods which are exempted from excise duty c) Non excisable goods d) Goods not at all mentioned in the Central Excise Tariff (3)Place of Removal under Central Excise means a) Removing the goods from the place of distributor b) Removing the goods from the place of customs station c) Removing the goods from the place of factory ) None of the above (4)Non-Dutiable goods means a) Name of the product not mentioned in the Tariff Act b) Name of the product mentioned in the Tariff Act c) Name of the product mentioned in the Tariff Act with the Rate of Duty d) Name of the product mentioned in the Tariff Act with the Zero Rate (5)Payment of Central Excise Duty depends up on a) Removal goods from the place of removal b) Manufacture of goods in the factory c) Deemed manufacture of goods d) Removal goods for branch transfer (6)The excise duty on alcoholic goods manufactured by the manufacturer is payable to a) State Government ) Central Government c) Corporation d) Local authority (7)Which of the following duties is covered under the First Schedule of the Central Excise Tariff Act? a) Basic Excise duty b) Special Excise Duty c) Additional Excise Duty d) Education Cess (8)Which of the following duties is under the purview of the State Government? a) Central Excise duty b) Customs duty c) Service tax d) VAT (9)Which are the goods still under the physical control? (a)Plastic products (b)Cigarette products (c)Apparel products (d) Glass products (10) At the time of manufacture of product X attracts 14% BED.At the time of removal the rate of duty is 8%. Which is the duty attracts for the product X a) 14% b) 8% c) 11% (Average) d) Zero (Because the rate has changed) Answer: (a) (a) (c) (d) (a) (a) (a) (d) (b) (b) 2. Fill in the Blanks 1) Central Excise duty can be levied at the time of 2) Goods at the time of manufacture, not mentioned in the Central Excise Tariff Act, can be called 3) Central Excise Tariff Act, 1985 containssections 4) Goods are classified under Central Excise Tariff Act based on theof Nomenclature havingdigit classification 5)The goods included in theSchedule of Central Excise Act are same as those on which excise duty is payable under section 4A of the Act. 6) Goods at the time of manufacture, mentioned in the Central Excise Tariff Act, can be called 7) Goods are classified under Central Excise Tariff Act based on thesystem 8) There are Chapters under the Central Excise classification 9) Labelling and relabelling comes under 10) Service tax came into force fromFinance Act Answer: Manufacture of goods in India Non excisable goods 20-sections Harmonized System Eight Third. Excisable goodsHarmonized System of Nomenclature 96 chapters Third Sch edule of Central Excise 1994 3. Say Yes or No, Give Reasons All goods manufactured are subject to central excise duty. All Excisable goods are dutiable goods No duty can be levied if the goods manufactured by the manufacturer is not movable but marketable Goods has been defined in the Central Excise Act Manufacturer includes deemed manufacturer There is no difference between levy and collection 7) Duty can also be collected even if the goods are non-excisable at the time of manufacturer, but are excisable at the time of removal of goods from the place of removal.Duty rates are specified in the Central Excise Act, 1944 Central Excise Duty Rate is indicated against each tariff item and not against heading or sub-heading. Manufacture includes any process incidental or ancillary to the completion of a manufactured product. Marketability is essential to levy the central excise duty 12) Goods mentioned in the First Schedule or Second Schedule to the Central Excise Tariff Act, 1985 are cal led non-excisable goods. Manufacturer is not defined under Central Excise Tariff Act. 14) Brand name owner is a manufacturer even though under contract a third party completely manufactures the productClassification is irrelevant, since all products attract 14% duty Circulars can be issued by the Government of India Answer: 1) No. Goods manufactured in India may be excisable goods or non-excisable goods. No central excise duty, if the goods are non-excisable. No. Excisable goods may be dutiable or non-dutiable goods. 3) Yes. No duty can be levied if the goods manufactured by the manufacturer is not movable but marketable as per the decision of the Supreme court of India in the case of Union of India v Delhi Cloth and General Mills Ltd. No.The term goods has not been defined in the Central Excise Act, 1944. Yes. Manufacturer includes deemed manufacturer 6) No. The term â€Å"LEVY† means imposition of tax/duty. Collection of duty is postponed to the stage of removal of goods. [ Rule 4 of the Central Excise Rules, 2002] 7) No. Duty can not be collected if the goods are non-excisable at the time of manufacture, but are excisable at the time of removal. No. Duty rates are specified in the Central Excise Tariff Act, 1985. Yes. Duty Rate is indicated against each tariff item and not against heading or sub-heading. 10) Yes.Manufacture includes any process incidental or ancillary to the completion of a manufactured product. Yes. Marketability is essential to levy the central excise duty. 12) No. Goods mentioned in the First Schedule or Second Schedule to the Central Excise Tariff Act, 1985 is called excisable goods. 13) No. The term manufacturer has been defined under section 2(f) in the Central Excise Act, 1944. The definition under section 2(f) is not exhaustive but inclusive. 14) No. Brand name owner is not a manufacturer even though under contract a third party completely manufactures the product.No. Classification is relevant, even though all products attrac t 14% duty. No. Circulars can be issued by the Central Board of Excise and Customs (CBEC). 4. Multiple Choice Questions (1) As per Rule 15 the Central Excise Rules, 2002, the option of paying duty is available to those manufacturers who manufacture (a)Aluminium circles (b)Plastic Products (c)Gold Products (d) Agriculture Products (2) Goods specified under Standards of Weights and Measures Act, 1976 as well as in the notification issued by the Government of India along with rate of abatement can be assessed under a) Maximum Retail Price (b) Transaction Value (c) Retail Price (d) Whole Sale Price (3) Captively Consumed Goods means (a) Goods manufactured and consumed with in the factory (b)Goods manufactured (c) Goods purchased and used in the factory (d) Goods received from branch (4) Interconnected undertakings means (a) Head office and Branch office (b) Holding and subsidiary companies (c) Group of companies (d) Companies under the same management (5) Which one of the following will come under the Specific Rate of Duty? (a)Cigarette product (b) Wood product (c)Plastic product d)Diesel product (6) What percentage should be added to the cost of production in the case of captive consumption? (a) 15% (b) 10% (c) 0% (d) 20% (7) MRP product Assessable value will be calculated as (a)Transaction basis (b)MRP less abatement (c) Percentage of tariff value (d)None of the above (8) Which one of the following will form part of transaction value (a) Transportation charges from the place of removal to the place of buyer (b) Transportation charges from the place of factory to the place of branch (c) Transportation charges from the place of distributor to the place of buyer d) Transportation charges from the place of buyer to any other place (9) Assessable does not include one of the following (a) Cost of material (b) Cost insurance (c) Cost of transportation (d) Interest on delayed payment (10) As per Rule 10 of the Central Excise Valuation Rules, the concept of interconnecte d undertakings means (a) Associate companies (b) Group companies (c) Holding and Subsidiary companies (d) None of the above Answer: (1) (a) (2) (a) (3) (a) (4) (b) (5) (a) (6) (b) (7) (b) (8) (b) (9) (d) (10) (c) 5. Fill in the Blanks 1) Specific Duty means duty is payable based on the____________and__________by the assessee (2) Provisions under section 4A have___________effect over section 4 of the Central Excise Act (3) Production 1500 units, quantity sold 510 units @ 250 per unit, 840 units @ 200 per unit, sample clearances 35 units and the balance 150 units are in stock. Hence, the assessable value is Rs. _________ (4) Excisable goods consumed within the factory for the manufacture of final product is called___________ (5) X Ltd (Holding Company) sold goods to Y Ltd (Subsidiary Company) at Rs. , 00,000. In turn Y Ltd sold goods to Z Ltd (unrelated person) at Rs. 1, 10,000, then the assessable value in the hands of X Ltd________. (6) Assessable in case of captive consumption is t he cost of production plus_______ (7) The transaction value cannot be considered as assessable value if, any one or part of the conditions____________. (8) MRP provisions are not applicable for packaged commodities meant for________. (9) Compound Levy Scheme is an___________schemes. (10) Dharmada Charges recovered from the buyer is form part of__________. Answer: (1) Length and weight of the product 2) Overriding (3) Rs. 3, 02,500 (4) Captive consumption (5) Rs. 1, 10,000 (6) @10% (7) Not satisfied (8) Industrial or institutional consumers. (9) Optional (10) Assessable Value 6. Say Yes Or No, Give Reasons (1) Specific Duty means duty is payable by the assessee on excisable goods based on the value of goods. (2) Compound levy scheme means an optional scheme (3) Maximum Retail Price means not exclusive of duties and taxes (4) Transaction value is applicable only when conditions specified in the provisions are satisfied. 5) Dharmada charges collected from the buyer are not includible i n the assessable value. (6) Excise duty and sales tax has to be included in the assessable value (7) There is no basis of valuation under Central Excise Law (8) Insurance charges from the place of depot to the place of buyer shall form part of assessable value (9) Captive consumption goods need not be certified by the Cost Accountant (10) Cash discount does not form part of assessable value. Answer: (1) No.Specific Duty means duty is payable by the assessee on excisable goods based on the length and weight of the products. (2) Yes. Compound levy scheme means an optional scheme (3) Yes. Maximum Retail Price means not exclusive of duties and taxes (4) Yes. Transaction value is applicable only when conditions specified in the provisions are satisfied. (5) No. Dharmada charges collected from the buyer are includible in the assessable value. (6) No. Excise duty and sales tax has to be excluded in the assessable value (7) No.There are five basis of valuation under Central Excise Law (8) N o. Insurance charges from the place of depot to the place of buyer shall not form part of assessable value (9) No. Captive consumption goods need be certified by the Cost Accountant (10) Yes. Cash discount does not form part of assessable value. 7. Multiple Choice Questions (1) ARE -1 Form should have following colors (a) White; Buff; Pink and Green (b) White; Buff; Red and Green (c) White; Buff; Black and Green (d) White; Buff; Rose and Green 2) CT- 1 form will be issued by the Merchant exporter to the Manufacturer for clearing the goods (a) Without payment of Central Excise (b) Avoidance of Central Excise duty (c) With payment of reduced rate of Central Excise Duty (d) With payment of full amount of Central Excise Duty. (3) Certificate of procurement of goods under procedure for export Warehousing can be done under the (a) CT-3 Form (b) CT-2 Form (c) ARE -1 (d) Bond -1 (4) The Letter of Undertaking is valid for a period of (a) 12 months from the date of acknowledgement by the depa rtment. b) 15 months from the date of acknowledgement by the department (c) 24 months from the date of acknowledgement by the department (d)6 months from the date of acknowledgement by the department (5) Excisable goods removed for re-warehousing and export therefrom without payment of duty by using the (a) B-3 Bond (b)B-2 Bond (c) B-4 Bond (d)B-7 Bond (6) Some times; if in the view of the Central Excise Department the manufacturer carries risk (namely discrepancies) the Department may ask him to submit the Bond in. (a)B-l with security or surety (b)B-2 with security and surety c)B-3 with security (d) B-4 with surety (7) CT-1 form received by the manufacturer from (a)Merchant exporter (b)EOU unit (c)Manufacturer (d)First stage dealer (8) The Export Oriented Units can procure indigenous material without payment of central excise duty. These units have to issue (a)CT -3 certificate (b)CT-4 certificate (c)CT-1 certificate (d)CT-2 certificate (9) If proper invoice for export along with the packing list and ARE -1 form in (a) Sixtuplicate (b) Duplicate (c) Triplicate (d) Quadruplicate (10) No rebate is allowed if the rebate amount is less than a)Rs. 500 (b)Rs. 1,000 (c) Rs. 2,000 (d) Rs. 4,000 Answer: (1) (a) (2) (a) (3) (b) (4) (a) (5) (a) (6) (a) (7) (a) (8) (a) (9) (a) (10) (a) 8. Fill in the Blanks (1) No rebate is allowed if the rebate amount is less than________ (2) Goods can be removed by executing a bond in case of merchant exporter with____________or without (3) Proof of export which is issued by the customs authorities by certifying the_______________ (4) ________________certificate is required only when bond is executed by the merchant exporter. 5) The goods exported to_______________and_________not eligible for rebate (6) An exporter who executes a bond to exempt himself from payment of excise duty will not be eligible to claim___________ (7) Bond is executed by the Merchant Exporter he may be required to obtain a_________from his banker for a specified amount. (8) __________is called as general bond with Surety/Security for removal of goods without payment of duty (9) In case of security bond in the form of cash deposit no________can be allowed (10) If goods are sealed by excise officer such a sealing is called __________ Answer: 1) Rs. 500 (2) with sealing or without sealing (3) ARE-1 Form (4) CT-1 (5) Nepal and Bhutan (6) Rebate (7) Bank Guarantee (8) B-l Bond (9) Interest (10) One Time Bottle Seal 9. Say Yes or No, Give Reasons (1) Export of goods with invoice but without the packing list can be exported (2) ARE -1 Form need not be prepared if the goods are exported under Bond. (3) Merchant exporter means a person engaged in manufacturing of goods for exporting or intending to export goods. 4) CT-1 forms will be issued by the superintendent of Customs to the merchant exporter on execution of bond (namely B – 1) (5) ARE-1 Form is to be prepared by the exporter in quadruplicate (6) Bonds under Central Excise are always se cured (7) No duty is payable on exported goods. Therefore there is no need of valuation and classification (8) Self-sealing can be done by any person of the unit (9) ARE-1 form is not required to be prepared by the exporter. (10) Export has to be completed within 3 months from the date of removal from the factory Answer: 1) No. Export of goods with invoice and with the packing list can be exported (2) No. ARE -1 Form need to be prepared even if the goods are exported under Bond. (3) No. Merchant exporter means a person engaged in purchase of excisable goods for the purpose of exporting or intending to export goods. (4) No. CT-1 forms will be issued by the superintendent of central excise to the merchant exporter on execution of bond (namely B-l) (5) No. ARE-1 form is to be prepared by the exporter in sixtuplicate (6) No. Bonds under Central Excise may be secured or unsecured. 7) No. classification and valuation is required for the purpose of determining the duty draw-back or DEPB li cense etc. (8) No. Sealing of Goods for Export which may be self-sealing or under seal of Central Excise. (9) No. ARE-1 form is required to be prepared by the exporter. (10) No. Export has to be completed within 6 months from the date of removal from the factory 10. Multiple Choice Questions (1) The unutilized CENVAT Credit can be carried forward (a) Up to 6 months (b) Up to 8 years (c) Without any time limit (d) Up to 10 years. 2) Cenvat Credit on capital goods can be claimed in the year in which it is purchased (a) Up to 50% (b) Up to 100% (c) Up to 25% (d) Up to 75% (3) Cenvat Credit on goods other than capital goods can be utilized (a) As soon as goods received into the factory (b) Only after payment actually made (c) Only after the goods actually sold (d) As soon as manufacture takes place (4) Cenvat Credit is not applicable if the following goods are purchased (a) Light Diesel Oil (b) Steel products (c) Plastic products (d) Wood products 5) Cenvat Credit can be adjusted agains t (a)Dutiable goods manufactured (b)Non-dutiable goods manufactured (c) Non-excisable goods manufactured (d)All excisable goods manufactured (6) Which of the following items is a capital goods (a) Tools, hand tools (b)Raw materials (c) Consumables (d) Accessories (7) Depreciation under section 32 of the Income-tax Act, 1961 should not have been claimed (a) On the cost portion of the Capital Goods (b)On the excise portion of the Capital Goods. (c) On the portion of other than Capital Goods d) On the portion of Factory Building (8) Cenvat credit can be utilized for payment of excise duty levied on any (a) Final products (b)Input products (c) Exempted products (d)Intermediary non-dutiable products (9) Personal Ledger Account must be prepared in (a) Triplicate (b) Single (c) Double (d) Quadruplicate (10) Cenvat credit on inputs other than capital goods can be allowed at (a) 100% (b)50% (c)25% (d) 0% (11) A unit availing SSI exemption can avail of CENVAT credit on capital goods but such credit can be utilized only (a) if the value of apital goods exceeds Rs. 100 lakh (b) after clearance of Rs. 150 lakh (c) if the capital goods are exported Answer: (1) (c) (2) (a) (3) (a) (4) (a) (5) (a) (6) (a) (7) (b) (8) (a) (9) (a) (10) (a) (11) (b) 11. Fill in the Blanks (1) Motor vehicles are not_____________goods for purpose of Manufacture (2) In respect of capital goods sent for job work these should be brought back within_________days from the date of dispatch. 3) The Second Stage Dealer means a dealer who purchases goods from a_______________ (4) The PLA is credited when duty is deposited in bank by_________challan (5) Depreciation should not be claimed by the manufacturer who avails the Cenvat credit on___________ (6) The term ___________ means raw-materials, consumables, accessories used to manufacture the finished product. (7) Don't maintain separate set of accounts but pay an amount equal to ___________of the value of exempted goods and forego the Cenvat credit of inpu ts utilized exclusively for manufacture of exempted final product. 8) Balance of CENVAT Credit Receivable (inputs) Account and PLA Account are shown as ____________in the Assets side of the Balance Sheet. (9) Due date of payment of Central Excise Duty for the month of March is______________ (10) Input tax credit on capital goods can be______________against the duty payable final products. Answer: (1) Capital (2) 180 days. (3) First Stage Dealer (4) GAR-7 (5) Capital Goods (6) In the manufacture (7) 10% (8) Current Assets. (9) 31st March (10) Claimed. 12. Say Yes or No, Give Reasons 1) Cenvat credit can be taken as soon as the inputs are dispatched by the supplier (2) Cenvat cannot be utilized for payment of duty on waste (3) Cenvat credit on capital goods is restricted to 50% of the duty in the year of the receipt (4) If there is no excise duty final products, cenvat credit cannot be claimed in the case of sale in DTA (5) When credit has been taken on input goods and the same is rem oved for home consumption, excise duty is not payable (6) In September 2008, the Government came out with the Cenvat Credit Rules, 2004 by merging the Cenvat Credit Rules, 2002 and the Service Tax Credit Rules, 2002. 7) The term â€Å"Capital goods† under Cenvat Rules is DIFFERENT from the term capital goods as understood in accounting or in income-tax (8) In the case of goods cleared for DTA for input credit to be claimed, the finished product should suffer at least Re 1 of excise duty (9) If a single invoice covers goods falling under different sub-heading, separate entries shall be made for each of such sub-heading (10) In case of inputs and capital goods Cenvat credit is available as soon as input is received in the factory. Answer: (1) Yes. Cenvat credit can be taken as soon as the inputs are received by the manufacturer. 2) No. Cenvat can be utilized for payment of duty on waste (3) Yes. Cenvat credit on capital goods is restricted upto 50% of the duty in the year of th e receipt and the balance in the subsequent year or years. (4) Yes. Cenvat credit cannot be claimed in the case of sale in DTA if the final products are non-dutiable. (5) No. Cenvat credit not allowed on those goods which are cleared as such for domestic tariff area. (6) No. In September 2004, the Government came out with the Cenvat Credit Rules, 2004 by merging the Cenvat Credit Rules, 2002 and the Service Tax Credit Rules, 2002 (7) Yes.The term â€Å"Capital goods† under Cenvat Rules is DIFFERENT from the term capital goods a: understood in accounting or in income-tax (8) Yes. goods cleared for DTA for input credit to be claimed, the finished product should suffer at least Re 1 of excise duty (9) Yes. Single invoice covers goods falling under different sub-heading, separate entries shall be made for each of such sub-heading (10) Yes. Input goods and capital goods Cenvat credit is available as soon as input is received in the factory. 13. Multiple Choice Questions 1)A manufa cturer being eligible for SSI related exemptions is linked to his turnover in the previous year a) Less than Rs. 400 Lakhs b) Less than Rs. 150 Lakhs c) Less than Rs. 90 Lakhs d) Less than Rs. 350 Lakhs (2)SSI Exemption scheme adopted by the manufacturer he is not required to pay the central excise duty up to a) Rs. 150 Lakhs on dutiable goods b) Rs. 300 Lakhs on dutiable goods c) Rs. 400 Lakhs on dutiable goods d) Rs. 100 Lakhs on dutiable goods (3)Value of captive consumption goods is forming part of the Rs. 400 Lakhs turnover, if the final product a) Exempt in any notification ) Not exempt in any notification c) Exempt under Notification 8/2003 d) None of the above (4)Industries are not eligible for SSI exemption irrespective of their turnover. a) Automobiles b) Plastic c) Paper d) Electronic and Electrical (5)The due date for filing Quarterly return ER -3 under Central Excise is a) 20th of the following month. b) 10th of the following month c) 5th of the following month d) 15th of the following month (6)The due date for payment of Central Excise Duty by the SSI unit for the month of April is a) 15th of the following month b) 15th of October c) 10th of the following month ) 5th of the following month (7)Frequency of audit for SSI unit paying central excise duty is less than Rs. 10 Lakhs. a) Once in 2 years b) Once in 5 years c) Once in 10 years d) Every year. (8)Job worker is exempt from basic excise duty if the supplier of raw material had undertaken payment of excise duty under a) Notification 24/86 Central Excise Law b) Notification 214/86 Central Excise Law c) Notification 8/2003 Central Excise Law d) Notification 18/2003 Central Excise Law (9)Registration is not required if the turnover for small scale units a) Less than Rs. 15 0 Lakhs ) Less than Rs. 90 Lakhs c) Less than Rs. 100 Lakhs d) Less than Rs. 10 Lakhs (10)What is to be done if turnover exceeds Rs 90 lakhs but is less than Rs 150 lakhs? a) Declaration to be filed b) No Declaration to be filed c) Declaration may be filed d) Declaration must be filed after attaining Rs. 150 Lakhs Answer: 1) (a) 2) (a) 3) (a) .. 4) (a) 5) (a) 6) (a) 7) (b) 8) (b) 9) (a) 10) (a) 14. Fill in the Blanks 1) SSI exemption is available only when the turnover in the previous year turnover is less than 2) SSI unit can clear the excisable goods uptowithout payment of duty. ) Quarterly returnto be filed before the due dateof the following month by the SSI units claiming the exemption notification (4)Payment of duty is on monthly basis and has to be made on or beforeof the following month 5) No declaration needs to be given to the department if the previous year turnover is less than 6) A Job worker is exempt from basic excise duty if the supplier of raw material had undertaken payment of excise duty under Notificationof Central Excise 7) SSI units will get the Cenvat Credit only over and abovetaxable turnover during the current year. ) Registration is not required for SSI units if the turnover durin g the previous year is less than of taxable turnover. 9) Audit of SSI units is conducted once innumber of years 10) Export turnover isfor the calculation of turnover under the notification 8/2003. Answer: Rs. 400 Lakhs Rs. 150 Lakhs ER-3, 20th 15th of the following month Rs. 90 Lakhs 214/1986 Rs. 150 Lakhs. Rs. 150 Lakhs. Two to five Exempted. 15. Say Yes or No, Give Reasons 1) The Government of India issued Notification No. 8/2003 providing relaxation from central excise duty, without any conditions. ) If in a previous year the turnover of a manufacturer is equal to Rs. 4 crores then he can in the current year claim the exemption benefits available to a SSI. 3) SSI units opted the exemption notification benefit can pay duty if the dutiable goods cleared from the factory exceeds Rs. 150 lakhs and claim Cenvat credit on inputs. 1) Manufacturers who have Cenvat credit (on capital goods plus on other than capital goods) which is more than the duty payable on exempted turnover will opt for SSI exemption benefit. ) Clearance of excisable goods without payment of duty to 100% EOU unit will form part of turnover to calculate the threshold limit of Rs. 4 crores. Sales to Nepal and Bhutan is considered as an export sales. Export procedures are very tough for SSI units. Exempted units from central excise duty are also exempted from registration. Audit of SSI unit is conducted every year. There is no difference between method of calculation of Rs. 400 Lakhs and Rs. 150 Lakhs. Answer: 1) No. The Government of India issued Notification No. 8/2003 providing relaxation from central excise duty, with conditions. ) No. Previous year the turnover of a manufacturer is equal to Rs. 4 crores then he cannot claim in the current year exemption benefits available to a SSI. 3) Yes. SSI units opted the exemption notification benefit can pay duty if the dutiable goods cleared from the factory exceeds Rs. 150 lakhs and claim Cenvat credit on inputs. 4) No. Manufacturers who have Cenvat c redit (on capital goods plus on other than capital goods) which is more than the duty payable on exempted turnover may not opt for SSI exemption benefit. 5) No.Clearance of excisable goods without payment of duty to 100% EOU unit will not form part of turnover to calculate the threshold limit of Rs. 4 crores. No. Sales to Nepal and Bhutan considered as home clearance. No. Export procedures are not tough for SSI units. Yes. Exempted units from central excise duty are also exempted from registration. No. Audit of SSI unit is conducted not on yearly basis. Yes. There is a difference between method of calculation of Rs. 400 Lakhs and Rs. 150 Lakhs. 16. Multiple Choice Questions (1)Registration is compulsory for the dealer who intends to act as a) First Stage Dealer ) Third Stage Dealer c) Dealer d) Purchaser (2)An application for registration under central excise law is required to be made in a) Form A-l b) Form B-1 c) Form CT-1 d) Form ARE-1 (3)The DSA shall be preserved for a) Five Ye ars b) Two Years c) One Year d) Six Months (4)The excise duty payable by the manufacturer is based on a) Invoice b) Gate Pass c) Lorry receipt d) Debit Note (5)Which one of the following is to be submitted by the manufacturer on a monthly basis a) ER – 1 b) ER – 3 c) ER – 5 d) ER – 7 (6)Original invoice has to be issued to the a) Buyer b) Transporter c) Central Excise Department ) Consignment Agent (7)The penalty for non-registration is a) Amount of duty of contravening goods or Rs 10,000 whichever is higher b) Amount of duty of contravening goods or Rs 10,000 whichever is less c) Amount of duty of contravening goods or Rs 1,000 whichever is higher. d) Amount of duty of contravening goods or Rs 5,000 whichever is higher (8)The due date of payment of tax through e-payment is a) 6th of the following month b) 5th of the following month c) 31 st of every month d) 15th of the following month (9)LTU will be headed by a) Chief Commissioner of CBDT or of CBEC ) C hief Commissioner of CBEC c) Commissioner of Central Excise d) Commissioner of Income Tax. (10)CIN stands for a) Challan Identification Number b) Cash Identification Number c) Commission Identification Number d) Central Information Number. Answer: (a) (a) (a) (a) (a) (a) (a) (a) 1) (a) 2) (a) 17. Fill in the Banks The 15 digit PAN based registration number is called 2) Registration under Central Excise can be granted in the name of a minor, provided a legal guardian undertakes to The penalty for delayed submission of return can extend upto The term GAR meansA LTU is an undertaking which has paid central excise or service tax of more thanduring the previous year. (6)The first page and the last page of the DSA shall be duly authenticated by the orperson LTUs will get facilities of payment of tax throughsystem. 8) Every assessee compulsorily files the annual installed capacity statement before 30th April of the succeeding financial year in theForm 7) The due date of payment of tax thro ugh e-payment is 6th of the following month by the manufacturers and by 16th of the following month in the case of SSI units.In the case of March month the due is 8) When goods are removed from the factory of the manufacturer to some other premises for purposes of â€Å"Testing† or for â€Å"any other process not amounting to manufacture†, excise duty need not be paid provided the permission ofof Central Excise is obtained. Answer: Excise control code Conduct the business Rs. 5,000 Government Account (Receipt and Payment) Rules Rs. 5 crore. manufacturer or his authorized person single window ER – 7 31st March Commissioner 18. Say Yes or No, Give ReasonsApplication for registration as a manufacturer should be made Form A-l A 5 digit PAN based registration number (ECC) will be allotted to the assessee There is no penalty for non-registration, even when registration under the statute is compulsory Daily Stock Account can be updated once in month Invoice under centr al excise law is required to be made in triplicate Payment of duty can be made once in six months 7) E-payment is mandatory for those manufactures who have paid central excise duty is Rs 50 lacs or more during the preceding financial year. ) If the assessee mentions CIN in the Return, it is not necessary to attach the copy of challan with the Return. Challan Identification Number (CIN) has three parts. 100% EOU has to submit the monthly return in ER-2 Form. Answer: Yes. Application for registration as a manufacturer should be made in Form A-l No. A 15 digit PAN based registration number (ECC) will be allotted to the assessee 3) No. There is penalty for non-registration which is Rs. 10,000 or duty on contravening goods whichever is higher No. Daily Stock Account should be updated on daily basis, two days delay is allowed. Yes.Invoice under central excise law is required to be made in triplicate No. Payment of duty can be made on monthly basis 7) Yes. E-payment is mandatory for those manufactures who have paid central excise duty is Rs 50 lacs or more during the preceding financial year. 8) Yes. If the assessee mentions CIN in the Return, it is not necessary to attach the copy of challan with the Return. Yes. Challan Identification Number (CIN) has three parts. Yes. 100% EOU has to submit the monthly return in ER-2 Form. 19. Multiple Choice Questions (1)Desk Review audit is a part of a) Special Audit b) C & AG Audit c) Excise Audit 2000 ) Investigation (2)In the case of Excise Audit 2000, selection of assessee is based on a) Risk factor b) Non-risk factor c) Merit of assessee d) Value of goods (3)Time period to issue notice before commencing the audit. a) 20 days b) 5 days c) 25 days d) 15 days (4)Cenvat credit audit can be ordered by a) The Chief Commissioner of Central Excise. b) The Commissioner of Central Excise c) The Assistant Commissioner of Central Excise d) The Deputy Commissioner of Central Excise (5)Yearly audit is applicable for those units who paid the central excise duty by way of cash more than a) Rs. 300 Lakhs b) Rs. 150 Lakhs ) Rs. 100 Lakhs (d) Rs. 90 Lakhs Answer: 1) (c) 2) (a) 3) (d) 4) (b) 5) (a) 20. Fill in the Blanks 1) Units paying duty more than Rs 3 crore has audit 2) C & A G submits the report to the, who causes these to be laid before each House of Parliament. 3) Valuation Audit carried out by. 4) The expenses of Cenvat credit audit and audit fees shall be paid by. 5) The maximum time limit for submission of such cost audit report isdays from the date of receipt of cost audit order by the manufacturer (6) C & AG submits the report to the, who causes these to be laid before each House of Parliament. 7) The audit plan should be documented in the. (8) The Cost Accountant has to submit his audit report within the time specified by the______________. (9) Road checks are carried out by the department authorities to check whether all goods moving are accompanied bydocuments or not. (10)A minimum ofnotice should be give n to the assessee before commencing the audit. (11)Stock taking can be done by the superintendent or Inspector of central excise for ______________and___________. Answer: Yearly The President of India. Cost Accountant Excise Department 180 days The President of India.Working papers Commissioner or Commissioner of Central Excise. Duty paying. 15 days. Finished goods and Cenvat goods 21. Say Yes or No, Give Reasons 1. Excise audit is compulsory every year if the payment of excise duty is more than 3 crores. 2. There are three types of excise audits under Central Excise Law. 3. Desk review audit can be conducted by a practicing Chartered Accountant or a practicing Cost Accountant in the premises of manufacturer. 4. Valuation audit can be ordered by the Superintendent of Central Excise 5. The expenses and audit fees shall be paid by Assessee . Returns are filed by the assessee without verification by the Excise department. Hence no audit is required to be conducted. 7. Central Excise Re venue Audit (known as CERA Audit) conducted by the Cost Accountant or Chartered Accountant. 8. The desk review is a part of the internal audit procedure and the services of the professionals are taken to help the department. 9. Valuation Audit can be ordered only with the prior approval of Chief Commissioner of Central Excise. 10. The desk review audit should be completed in 5-7 working days Answer: 1) Yes.Excise audit is compulsory every year if the payment of excise duty is more than 3 crores. 2) Yes. There are three types of excise audits under Central Excise Law. 1) No. Desk review audit can be conducted by a practicing Chartered Accountant or a practicing Cost Accountant in the premises of Department. 2) No. Valuation audit can be ordered by the Assistant or Deputy Commissioner of central excise after getting the prior permission of Chief Commissioner of Central Excise. 3) No. The expenses and audit fees shall be paid by the department. 3) No.Returns are filed by the assessee w ithout verification by the Excise department. Hence audit is required to be conducted. 4) No. Central Excise Revenue Audit (known as CERA Audit) conducted by the C and A G department. 4) Yes. The desk review is a part of the internal audit procedure and the services of the professionals are taken to help the department. 5) Yes. Valuation Audit can be ordered only with the prior approval of Chief Commissioner of Central Excise. 5) Yes. The desk review audit should be completed in 5-7 working days. 22. Fill in the BlanksService Tax is a tax on. Service Tax is applicable to the whole of India except the statue of. Registration is mandatory if the value of taxable services exceeds Rs. during the financial year. 4) Form________________is used for applying for registration under Service Tax. 5) The Due date of payment of service tax for the month is________________of the succeeding month. 6) The effective rate of service tax including Education Cess is________________. 7) Registered premi ses means all premises from where an assessee is providing____________________. ) The present rate of service tax is___________ plus_______________plus. 9) The Service tax provider is required to issue (within 14 days of completion of service) an_____________ signed by him or a person authorized by him. (10)If service tax payment is made through internet banking, such e-payment can be made by__________ of the following month or following quarter as the case may be. Answer: 1. Value of taxable services 2. Jammu and Kashmir 3. Rs. 9,00,000 4. ST-1 5. 5th 6. 12. 36% 7. Taxable services 8. 12% plus 2% plus 1% 9. Invoice. 10. 6th 23. Say Yes Or No, Give Reasons ) The list of records needs to be maintained is not provided in the Service Tax Rules 2) Single registration in the case of multiple services rendered is possible subject to conditions 3) The due date for monthly return for service tax is the 25th of the succeeding month in the case of a company 4) A service provider is the person who renders the service 5) GAR-7 is the form used to pay Service tax 6) Service tax records are to be maintained at the registered premises of the service provider. 7) For any delayed payment of service tax, interest cannot be levied. 8) If Service tax paid during the previous year is in excess of Rs. 0 lakhs then e-payment is mandatory 9) Single Registration is possible with the permission from Department, only when the assessee maintains centralized billing or centralised accounting for multiple services provided from more than one premises. 10) If the last day of payment and filing return is a public holiday, tax should be paid and return filed on the previous working day. Answer: 1) No. This list is to be submitted once at the time of filing his first S. T. 3 return. Sales register, Purchase register, Cash book, Petty cash book, General ledger, etc. 2) Yes.Single registration in the case of multiple services rendered is possible subject to conditions 3) No. The due date for sub mitting the return is half yearly 25th October and 25th April. There is no monthly return concept in the service tax provisions. 4) Yes. A service provider is the person who renders the service 5) Yes. GAR-7 is the form used to pay Service tax 6) Yes. Service tax records are to be maintained at the registered premises of the service provider. 7) No. For any delayed payment of service tax, interest mandatory. 8) Yes. If Service tax paid during the previous year is in excess of Rs. 0 lakhs then e-payment is mandatory 9) Yes. Single Registration is possible with the permission from Department, only when the assessee maintains centralized billing or centralised accounting for multiple services provided from more than one premises. 10) No. If the last day of payment and filing return is a public holiday, tax can be paid and return can be filed on the next working day. 24. Multiple Choice Questions (1)Service tax can be levied on the a) Taxable services b) Exempted services c) Partly exem pted and partly taxable services d) On purchase of input goods (2)Value of works contract includes ) Cost of consumables, electricity b) Value of transfer of property in goods c) Value of VAT or Sales Tax on the above d) None of the above (3)A person who neither intends to hold nor holds any title to the goods or services is called a) Pure Agent b) Dealer c) Service tax provider d) Manufacturer (4)Under Service Tax (Determination of Value) Rules, 2006, Act means a) The Finance Act, 1994 b) The Central Excise Act, 1944 c) Central Excise Tariff Act, 1985 d) Central Sales Tax Act, 1956 (5)Service tax is not applicable to the state of a) Jharkhand b) Himachal Pradesh c) Tripura d) Jammu and Kashmir 6)The importer of service is liable to pay service tax only when the service provider having a) No place of business in India b) Place of business in India c) Permanent address in India d) None of the above (7)The service tax paid on input services claimed as Cenvat credit after the export of service a) Can be claimed rebate (i. e. duty drawback) b) Cannot be claimed any rebate c) Can be claimed as refund d) None of the above (8)If the immovable property in respect of which service is rendered outside India the service is considered an export a) Irrespective of where the payment has come from ) Only when payment came from overseas. c) Partly from overseas d) Even without payment received from an importer. (9)The value of any taxable service, as the case may be, does not include a) The rail fare collected by rail travel agent b) Value of services collected by rail travel agent c) Services provide by the consultant d) None of the above (10)Which of the following services does not come under export of service? a) Air transport of passengers embarking for international travel b) Export of services with respect to immovable property c) Export of services with respect to management consultancy services d) None of the above.Answer: (a) (a) (a) (a) (d) (a) (b) (a) (a) (a) 25. F ill in the Blanks 1. Service tax liability is dependent upon the type of thewho provides the taxable service 2. Service tax can be levied on theand 3. Services provided by Central or State Government are taxable unless these services are 4. If the value is not ascertainable thenshould be referred for arriving the value of such services. 5. Out of pocket expenses incurred arein the value of taxable service. 6. The expenditure or costs incurred by the service provider as aof the recipient of service shall be excluded from the value of the taxable service . Receipt of advance money is not 8. Taxable event in the case of import is the date of 9. Service tax is payable onof taxable service actually received and not on amount billed, even though taxable event arises. 10. The costs incurred by the service provider as aof the recipient of service shall be excluded from the value of the taxable service Answer: 1) Person. 2) Taxable Service and Value of Taxable Service 3) â€Å"statutory ser vices† 4) Service Tax (Determination of Value) Rules, 2006. 5) Includible. 6) Pure Agent 7) a taxable event 8) actual import 9) The value. 10) Pure Agent 6. Say Yes or No, With Reasons 1) If a service is rendered free service tax is not payable because the value of the service is zero and no amount is received from the customer. 2) There is concept of pure agent that exists for the purpose of service tax valuation. 3) The value of goods transferred to the job worker is not included in the assessable value of service. 4) Service Tax can be levied on an advance payment received. 5) The central excise officer has the power to determine the value of the services after providing an opportunity to be heard to the assessee. ) Services delivered by a person having a place of business in Jammu and Kashmir to a person having a place of business in Andhra Pradesh is subject to service tax. 7) Statutory services are also taxable services. 8) Some services are taxable when provided to â₠¬Å"any person†. If a service falls in that category, service provided on sub-contract basis will be liable to pay service tax. 9) A person having a place of business in Andhra Pradesh provides to a person having a place of business in Jammu and Kashmir. Such service is liable to service tax law. 0) The airfare collected by air travel agent in respect of service provided by him does not include in the value of services. Answer: 1) Yes. If a service is rendered free service tax is not payable because the value of the service is zero and no amount is received from the customer. 2) Yes. There is concept of pure agent that exists for the purpose of service tax valuation. 3) Yes. The value of goods transferred to the job worker is not included in the assessable value of service. 4) Yes. Service Tax can be levied on an advance payment received. 5) Yes.The central excise officer has the power to determine the value of the services after providing an opportunity to be heard to the asse ssee. 6) Yes. Services delivered by a person having a place of business in Jammu and Kashmir to a person having a place of business in Andhra Pradesh is subject to service tax, place of delivery of service is important. 7) No. Statutory services are not taxable services 8) Yes. Some services are taxable when provided to â€Å"any person†. If a service falls in that category, service provided on sub-contract basis will be liable to pay service tax. 9) No.A person having a place of business in Andhra Pradesh provides to a person having a place of business in Jammu and Kashmir. Such service is liable to service tax law. 10) Yes. The airfare collected by air travel agent in respect of service provided by him does not include in the value of services. 27. Multiple Choice Questions 1. Service tax liability arises only when the taxable turnover of the previous year exceeds a) Rs. 10,00,000 b) Rs. 9,00,000 c) Rs. 8,00,000, d) Rs. 7,00. 000 2. No service tax will be levied on value of goods and material supplied to the service recipient while roviding service, provided Cenvat Credit on such goods and material is a) not taken b) taken c) partly reversed d) none of the above 3. One of the following services is a â€Å"reverse charge† a) Mutual Fund distributors services b) Management consultancy services c) Telecommunication services d) Information Technology services 4. Services rendered to the Reserve Bank of India is a) taxable service b) exempted service c) partly exempted d) none of the above 5. Importer of service is liable to pay service tax only when a) provider of service has no place of business in India b) provider of service has place of business in India ) import of service is not taxable in India d) provider of service is related to the importer 6. Services are taxable only when defined under a) Section 65( 105) of Finance Act, 1994 b) Section 64( 105) of Finance Act, 1994 c) Service Tax Rules d) Section 4 of the Central Excise Act, 1944 7. Wh ich one of the following service is called reverse charge a) Service provider is liable to pay service tax b) Service receiver is liable to pay service tax c) No one is liable to pay service tax d) Whose services are exempted from service tax 8. Services provided to United Nations employees for their personal purposes is a) Liable to pay service tax ) Not liable to pay service tax c) Partly liable to pay service tax d) None of the above 9. ACA firm had a turnover of Rs. 17 lakhs in Yl. Its turnover was Rs. 5 lakhs in Y2, Rs. 8 lakhs in Y3 and Rs. 5 lakhs in Y4. In which years is the firm liable to pay service tax? a) Yl and Y2 b) Yl,Y2andY3 c) Y2 and Y3 d) None of the above 10. Exemption turnover of Rs. 10 lakhs for previous year it is the value of taxable service rendered and for the current year a) Value of taxable service received b) Value of taxable services rendered c) Value of taxable services partly received and partly rendered d) None of the above. Answer: 1) (a) 2) (a) 3) ( a) ) (b) 5) (a) 6) (a) 7) (b) 8) (b) 9) (a) 10) (a) 28. Fill in the Blanks 1. If the taxable services exceedbut is less thanthen the service provider will have to register with the Superintendent of Central Excise under the Service Tax provisions. 2. For certain services service tax liability is to be paid by the service receiver is called 3. Services provided to Special Economic Zones (or) services provided by Special Economic Zones are 4. Service tax liability is exempted if the turnover is less than or equal to 5. If the taxable turnover during the current year 2008-09 exceedsthen there is no exemption limit in the year 2009-10.Answer: 1) Rs. 9,00,000 but less than Rs. 10,00,000 2) Reverse charge 3) Non Exempted Services 4) Rs. 10,00,000 5) Rs. 10,00,000. 29. Multiple Choice Questions 1. What is the due date for payments of service tax in the case of a partnership firm? a) 5th day of the month immediately following every month b) 25th day of the month immediately following every quarter c) 5th day of the month immediately following every quarter d) 25th day of the month immediately following every month 2. ‘A Ltd' enters into an advertising contract with ‘B Ltd. ‘ for a sum of Rs. 15,000 on 5-6-2006. ‘A Ltd. ‘ receives an advance of Rs. 10,000 on 06. 6. 2006 and the balance amount on the completion services of service on 12. 07. 2006. The service tax payable by ‘AB Ltd. ‘ is: a) Rs. 1836 by 25-8-2006 a) Rs. 1224 by 25-6-2007 and Rs. 612 by 25-8-2006 b) Rs. 1836 by 5-8-2006 b) Rs. 1224 by 5-7-2006 and Rs. 612 by 5-8-2006 3. ‘Y Ltd' provides management consultancy services to ‘X' for a consideration of Rs. 20,000 . ‘Y Ltd. ‘ raises the bill on ‘X' on 05. 06. 2006. ‘Y Ltd. † receives the payment from ‘X† on 15. 07. 2006. When should ‘Y Ltd. ‘ pay the service tax? a) on or before 5-8-2006 b) on or before 5-7-2006 c) on or before 31 -7-2006 d) on or before 30-6-2006 . Service tax is payable to the credit of the Central Government in: a) Form ST-3 b) GAR -7 challan c) Form F d) None of the above 5. Adjustment of excess of service tax can be allowed on the basis of a) Pro-rata b) Total amount at time c) Only 80% d) Only 50% 6. Penalty for not maintaining the proper books of accounts may extend to a) Rs. 5,000 b) Rs. 50,000 c) Rs. 2,500 d) Rs. 1,000 7. An assessee is allowed to rectify mistakes and file revised return a) Within 90 days from the date of filing of the original return b) Within 180 days from the date of filing of the original return c) Without any time limit ) None of the above 8. E- payment of service tax is mandatory only when the payment of service tax exceeds a) Rs. 50 Lakhs b) Rs. 5 Lakhs c) Rs. 10 Lakhs d) Rs. 15 Lakhs 9. How much abatement will be allowed to Mandap Keeper, Hotels and Convention Services providing full catering services a) 40% b) 60% c) 100% d) 50% 10. Cenvat credit is not allowed if the input servic es are exclusively used in the output services a) Exempted service b) Export of services c) Taxable export of services Answer: (c) (d) (a) (b) (a) (a) (a) (a) (a) (b) 30. Fill in the Blanks 1.Abatement is an amount that can befrom the value of the service. 2. In the case of Individuals the due date for payment of service tax for the III quarter is 3. In the case of companies the service tax for October is payable on or before of 4. For all assessees the due date for payment of service tax for the service rendered in the month of March is 5. E-payment of service tax has been made mandatory for assessees who have paid service tax of more than Rs. during the last financial year or during the current financial year 6. Half yearly return has to be filed using Form; The number of copies should be _____ 7.The time limit for filing revised return isdays from the date of 8. Penalty for not obtaining registration is Rs. per day for every day of default or Rs. whichever is higher. 9. The penal ty will be reduced to%, if tax, interest and penalty are paid within 30 days from the date of receipt of order of Central Excise Officer. 10. The facility of e-payment of service tax has also been introduced from Answer: Deducted 5th of January 5th of November 31st March 1) Rs. 50,00. 000 2) ST – 3 , triplicate 3) 90 days from the date of filing the original return. 4) Rs. 00 per day or Rs. 5, 000. 5) 25%. 6) 11. 05. 2005 31. Say Yes or No, Give Reasons It is necessary to specify the heading under which the service being provided is falling. 2) Service provided from India with respect to immovable property situated abroad is called export of services. 1) There can be no reversal of Cenvat credit on input service towards Interior decorator services used to produce partly dutiable goods as well as non dutiable goods. 2) There can be no reversal of Cenvat credit on input services for an output service provider if the final services are deemed exports. ) Due date of payment of se rvice tax for e-payer is the 6th of following month including the dues for March month. Service tax will be paid by an individual on monthly basis Due date of submission of half yearly return ST – 3 is 30th September Revised returns can be filed with in 90 days from the date of original return filed by the assessee E- payment of service tax is compulsory for every assessee Provisional assessment is not applicable at any given case under service tax provisions. Answer: 1) Yes. Specify the heading under which the service being provided is falling is necessary for the purpose of classification. ) Yes. Service provided from India with respect to immovable property situated abroad is called export of services. 3) No. There should be reversal of Cenvat credit on input service towards Interior decorator services used to produce partly dutiable goods as well as non dutiable goods. 4) Yes. There can be no reversal of Cenvat credit on input services for an output service provider if th e final services are deemed exports. 5) No. Due date of payment of service tax for e-payer is the 6th of following month except the dues for March month. No. Service tax will be paid by an individual on quarterly basis No.Due date of submission of half yearly return ST-3 is 25th October and 25th April. Yes. Revised returns can be filed within 90 days from the date of original return filed by the assessee No. E- payment of service tax is not compulsory for every assessee No. Provisional assessment is applicable under service tax provisions. 32. Multiple Choice Questions (1)Voluntary registration if turnover does not exceed a) Rs. 10,00,000 b) Rs. 1. 00,000 c) Rs. 12,00,000 d) Rs. 50,00,000 (2)Registration is Compulsory based on transactions (irrespective of turnover) if the dealer falls under the following categories ) Dealer is an importer b) Dealer selling goods within the state c) Dealer is dealing with the exempted goods d) None of the above. (3)Dealer is liable to pay tax at Spe cial rates as specified in Schedule. a) Eligible to avail the VAT credit b) Not eligible to avail the VAT credit c) 50% of VAT eligible for credit d) Eligible to avail the VAT credit after registered under VAT (4)The prescribed authority may cancel the registration of a VAT dealer, where the VAT dealer: a) Has no fixed place of business b) Has place of business c) Has place of residence d) None of the above 5)Compulsory registration under VAT applicable if the dealer a) deals with inter-state sales b) deals with exempted goods c) buying and selling goods in the state d) none of the above Answer: 1) (a) 2) (a) 3) (b) 4) (a) 5) (a) 33. Say Yes or No, With Reasons 1) There are two types of registration (i) Compulsory Registration (ii) Voluntary Registration. 2) Dealers whose Voluntary Registration always rejected by the department 3) Dealer dealing with inter-state sales has to compulsorily register under the State VAT. 4) Registration is also available under VAT for TOT dealers or com pounding tax opted dealer. ) A certificate of registration under VAT is not available. Answer: Yes. There are two types of registration (i) Compulsory Registration (ii) Voluntary Registration. No. Dealers whose Voluntary Registration always not rejected by the department Yes. Dealer dealing with inter-state sales has to compulsorily register under VAT. Yes. Registration is also available under APVAT for TOT dealers Yes. A certificate of registration under VAT is in the Form VAT 105 34. Multiple Choice Questions (1)How many Schedules are there under the VAT Act. a) Five Schedules b) Six Schedules c) Seven Schedules ) Eight Schedules (2)Goods specified under Schedule V will be taxed at the rate of a) 0% b) 1% (c) 4% (d) 12. 5% (3)Under which Schedule do Bullion and Specie come? a) Schedule 1 b) Schedule II c) Schedule III d) Schedule IV (4)The point of levy of tax for Aviation and other motor spirit is the point of a) First sale in the State b) Second sale in the State c) First and Se cond sale in the State d) Third sale in the State (5)Sale of taxable goods in the course of inter-state trade or commerce falling within the scope of section 3 of the Central Sales Tax Act, 1956 are called ) Zero rated sales b) Exempted sales (c). Non-exempted sales (d) Taxable sales (6)VAT rate on all kinds of Pulses and Dhalls is a) 1% b) 4% c) 12. 5% d) 0% (7)At the point of first sale in the state the following product attracts 32. 55% of VAT a) Petrol b) Machinery c) Liquor d) Diesel Oil (8)Abbreviate ITC a) Input Tax Code b) Input Tax Credit c) Initial Tax Credit d) In-house Tax Credit (9)Sale of vegetables and fruits other than those cured, frozen, preserved, processed, dried, dehydrated or canned are called a) Exempted sales b) Taxable sales c) Partly exempted sales d) Special sales 10)Kerosene sold through public distribution system will attract VAT rate a) 0% b) 1% c) 4% d) 12. 50% Answer: 1) (b) 2) (d) 1) (c) 3) (a) 4) (d) 5) (b) 6) (a) 7) (b) 8) (a) 9) (c) 35. Say Yes or No, Give Reasons 1) Input Tax Credit can be allowed in respect of Schedule VI goods 2) Gold and Jewellery are liable to tax under VAT @ 1% 3) Goods that fall under the Schedule I will get Input Tax Credit 4) Generally sale of books, periodicals and journals are exempted goods under VAT. 5) VAT rates are common for all the products specified in Schedule V 6) The first seller of special goods in Andhra Pradesh is liable to pay.The second seller of these goods is not liable to charge and pay tax on his sales. 7) Liquor, at the point of first sale in the State of Andhra Pradesh, is subject to VAT @ 70% 8) VAT rate is zero in respect of sales of goods to any unit located in the Special Economic Zone. 9) Sugar product is listed in the First Schedule and is exempt from VAT. 10) All intangible goods including copyright, patent, rep license, DEPB are subject to VAT @4% Answer: No. Input Tax Credit can not be allowed in respect of Schedule VI goods. These goods are subjected to tax at specia l rates.Yes. Gold and Jewellery are liable to tax under VAT @ 1%. No. Goods that fall under Schedule I will not get Input Tax Credit. Because these goods are exempted goods. Yes. Generally sale of books, periodicals and journals are exempted goods under APVAT. Yes. VAT rates are common for all the products specified in Schedule V. Yes. The first seller of special goods in Andhra Pradesh is liable to pay. The second seller of these goods is not liable to charge and pay tax on his sales. Yes. Liquor, at the point of first sale in the State of Andhra Pradesh, is subject to VAT @ 70%. Yes.VAT rate is zero in respect of sales of goods to any unit located in the Special Economic Zone. Yes. Sugar product is listed in the First Schedule and is exempt from VAT. Yes. All intangible goods including copyright, patent, rep license, DEPB are subject to VAT @4%. 36. Multiple Choice Questions (1) Input Tax Credit (ITC) can be claimed if the inputs are used for a) business purpose b) personnel purpo se c) distributing as free sample d) captive consumption (2)Every registered dealer must file return for each month on or before a) 20th of the succeeding month b) 10th of the succeeding month ) 5th of the succeeding month d) End of the current month (3)ITC can be claimed against inter-state sale only when those sales are supported by a) Form C b) Form D c) Form H d) Form I (4)The period covered by the return is called a Tax Period and will cover a a) Calendar month b) Calendar year c) Half a month d) Six months (5)The method under which tax is imposed at each stage of sales on the entire sale value and the tax paid at the earlier stage is allowed as set-off is called a) Invoice method b) Subtraction method c) Deductive method d) Value addition and deletion method 6)Under Invoice method, tax credit can't be claimed unless and until the a) Tax Invoice is produced b) Tax amount paid c) Goods are delivered d) Actual sales take place (7)VAT paid at reduced rate is called a) Compounding Levy of tax b) Non-compounding levy of tax c) Value added tax d) Sales tax (8)Sales returns is allowed as a deduction from the taxable turnover of goods if the goods are returned with in a) Six months of sales b) Twelve months of sales c) Three months of sales d) One month of sales (9)Product X is taxable @ 4% and Product Y is taxable @12. 5%. Product X is sold for Rs. 100,000 and Product Y for Rs. 0. 000. Total input tax credit is available for Rs. 5,000. What would be the net VAT payable? a) Rs. 5,250 b) Rs. 5,000 c) Rs. 2,500 d) Rs. 10,250 (10)A dealer in Andhra Pradesh paid CST of Rs. 1,000 on inter-state purchases. VAT payable by him on local sales is Rs. 1,250. The Net VAT payable is. a) Rs. 250 b) Rs. 1,250 c) Rs. 1,000 d) Rs. 750 Answer: (A) (a) (a) (a) (a) (a) (a) (b) (a) (b) 37. Fill up the Blanks 1) VAT is apoint tax and helps to removeeffect. 2) There are two types of dealersand. 3) Input Tax is applicable only to. 4) Application for registration under APVAT can be made using Form No.. ) Schedule I lists the items that arefrom the VAT 6) The Input Tax Credit for VAT paid goods is not available for goods not meant for. 7) The due date for filing of Monthly VAT return isin the Form. 8) There are three methods for computation of VAT namelyand 9) Input Tax Credit can be claimed against inter-state sale only when those sales are supported by Form 10) The Department can reject the Voluntary Registration application made by dealer if he does not have a Answer: 1) Multi point, cascading effect. 2) VAT Dealer and TOT Dealer. 3) VAT Dealer 4) VAT 100 5) Exempt 6) Business ) 20th of the succeeding month, Form 200 8) Addition method, Invoice method and subtraction method 9) Form ‘C’ 10) Place of business 38. Say Yes or No, Give Reasons Taxable sales does not included Zero rated Sales Zero rates and Exempted sales are one and the same There is no such concept as Voluntary registration in VAT Schedule VI lists the items that are charged to tax at Sp ecial rates 5) Schedule V is a residuary head. Any items that does not find a place under Schedule I, II, III or IV can be classified under this schedule Input Tax credit can also be availed on Capital Goods ) TIN means Tax Identification Number which is nothing but the Unique VAT registration number allotted to all registered dealers Input Tax Credit can be availed for the Zero rates Sales 9) Input Tax Credit can be availed on Inter state purchases, or goods received by consignment sales or stock transfer to this s

Criminal Justice What Does it Mean to Provide Justice

What does it mean to provide justice? Criminal justice is a term that is often used to describe topics such as the procedure by which criminal conduct is investigated, charges brought, arrests made, evidence gathered, trials conducted, sentences rendered and punishment carried out. The â€Å"British philosopher and statesman Benjamin Disraeli (1804–1881) defined justice as â€Å"truth in action.† A popular dictionary defines it as â€Å"the principle of moral rightness, or conformity to truth (Schmalleger F., 2013).† Justices is the process of making those who have been wronged whole. It is the process of giving the victims the relief, that the wrong doer is being punished for their unlawful actions. Was justice applied in the scenario discussed Dale and Mike Parak case, the answer is both yes and no (Schmalleger F., 2013). Yes, because Dale did commit a crime when he choose to use the 38-caliber revolver to complete the suicide. Mike did not agree to death by gun so there for this is an act against his will. Both participates agree to death by tranquilizers neither Mike nor Dale gave consent to use a gun. No, because the charges that where filed against Dale where incorrect (in my opinion). The charges where elements for 1st-degree, premeditated murder are 1) the unlawful killing; 2) with malice aforethought; 3) of another human being. The element that must be present to charge one with 1st-degree is when one kills an individual without lawful justification. â€Å"In order to convict ofShow MoreRelatedEye For An Eye Is The Best Way Of Dealing With Criminal Behavior856 Words   |  4 Pagesdespite the existence of law. However, someone may ask what is the best way of dealing with criminal behavior? Should the society embrace the concept of â€Å"an eye for an eye† or â€Å"get to the root† of the problem, or just simply to focus on and assist the victim (Schmalleger Smykla, 2012 pg. 12)? 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Regardless what the process is called criminal justice will continue to serve with discretion, conviction, and correction. When first presented with the question whether criminal justice is a system, non-system, and network I leaned toward aRead MoreCriminal Justice Essay985 Words   |  4 PagesCriminal Justice Essay Jeremy Hanes CJA/204 10 June2013 Erica Veljic In today’s society crime is increasing every day and the types of crime are changing. It seems more and more that crimes of identity theft and organized crime are on the rise. 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One of these accounts is presented by Socrates, in which he believes that justice is not harming anyone under any circumstances. Socrates first presents this argument when he questions if it is just to treat anyone badly (335b). Polemarchus, based on his account of justice – in which justice is treating friends well and harmingRead MoreEffectiveness of the Criminal Trial Process as a Means of Achieving Justice977 Words   |  4 PagesThe effectiveness of the criminal trial process as a means of achieving justice The criminal trial process aims to provide justice for all those involved, while it succeeds in the majority of cases, it effectiveness is influenced and reduced by certain factors. These include the legal representation involved in a case and the availability of legal aid, the capacity of the jury assessing the trial, the credibility of scientific evidence and the impact of social media on the trial process. Due toRead MoreMurder On The Orient Express1307 Words   |  6 PagesCorrelating crime to its appropriate punishment often differentiates based on the crime committed and impacts felt by those affected. Criminals are not always fully punished and on occasion are able to escape persecution without receiving any measurable punishment. A theme of justice connects punishment and crime in Agatha Christie’s detective novel, Murder on the Orient Express. Set on a snow-trapped train, Christie tells the story of detective Hercule Poirot’s work to determine who murdered Mr

The Commercialisation, Professionalization And Equity Of...

This piece of work will explain how the commercialisation, professionalization and equity of sport has changed from the 1950s to today. This piece of work will also discuss the different techniques and strategies that organisations within sport used to commercialise, professionalise and set social stratification. The worldwide interest in sport is phenomenal, regardless of your skin colour, religion, health, social status, gender and home nation. Sport is a universal platform for happiness, revenue and success. Even though sport has made the leap from just love and passion, to revenue and business, sport has never been without its business factors â€Å"Business sport have never been entirely unconnected in Britain† (Mason, 19888, cited in Horne, 2006: 20). For example, sport can attract audience but also sell their goods via the viewing platform. More specifically a great example of this would be Manchester United’s Jersey sales, having the largest amount of sales in England (1,750,000). This is a direct link from commercialisation and media coverage. Media moved from covering sport gaining from it indirectly, to effectively controlling it (Burstyn, 1999, cited in Horne, 2006: 21). From one side of the world to another, sport thrives and is forever growing. From America’s â€Å"4 sports†, to England’s top flight level of football, the premier league. Another substantial factor that will be discussed from 1950 onwards is equity. An example of how equity has been apparent in sportShow MoreRelatedI Love Reading Essay69689 Words   |  279 Pages6.3 : Figure 6.4 : Figure 6.5 : Figure 6.6 : Figure 6.7 : Figure 6.8 : Figure 7.1 : Figure A.1 : Figure A.2 : Figure A.3 : Figure A.4 : Figure A.5 : PE/VC investments by industry in 2007(Total US$ 14.2 Bn) Growth of venture capital and private equity in India, 2000-2007 Investments by stage– Number of deals Building synergies Importance of education Qualiï ¬ cation of entrepreneurs Qualiï ¬ cation of entrepreneurs – Variations according to time period MBA and entrepreneurship – Variations according

Caffeine as a Drug Essay - 2841 Words

Waking up to a hot cup of coffee, relishing the cool tingling sensation of a cola with your lunch, or relaxing in the afternoon over a cup of tea, all have similar ingredient caffeine. Caffeine has been consumed ever since the 2700 BC, with its conjunction in tea, for the Chinese Emperor Shen Nung. In 575 AD, the first use of coffee beans where in Africa where it was used as currency and food. Even more today, caffeine consumption has become an integral part of millions of peoples daily lives. According to David Weaver, Caffeine and theophylline are among the most widely consumed neuroactive substances. These drugs are consumed most frequently in beverages, but also are present in certain over-the-counter diet aids, alertness†¦show more content†¦Especially students that depend on caffeine to support their study habits should carefully monitor such information. Many college students use caffeine byproducts such as sodas, coffee, and caffeine pills as supplements to maintain a more alert state. However, a lot of students lose count of how many cups of coffee or soda they have intake. Students tend to gear their consumption of these caffeine products by the products effectiveness rather than their caffeine dosage. This may result in the abuse of this substance, however minimal deaths have been reported due to this. In most cases, overdoses will result in tremendous discomfort and rarely cause death or permanent damage. However, a number of people have died from an overdose of caffeine. According to DSM-3-R, the toxic dose or lethal dosage to kill fifty percent of the population is estimated at ten grams. Although the lethal dose varies between each individual the basic guidelines tend to fall at one hundred and fifty milligrams per kilogram of body weight. A more animated description of the lethal overdose would range from fifty to two hundred cups of coffee or fifty caffeine pills. In lethal overdoses physiological effects such as seizures, tachycardia, or cardia arrhythmia can occur. Tachycardia and cardia arrhythmia can also occur with an intake of greater than one thousand milligrams of caffeine. Dosages between five hundredShow MoreRelatedEffects Of Caffeine On A Drug2393 Words   |  10 Pages In the beginning of the semester we were told to write down any drugs we had taken in the last 30 days. When I wrote down the drugs that I had taken over the last 30 days I never once considered caffeine a drug. I never saw caffeine as a drug until this class.The purpose of this project is to get a better understanding of someone who is attempting the abstinence process. For this project we had to get rid of one substance we consume daily or at least frequently. 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In fact, â€Å"caffeine is the most consumed psychoactive substance in the world† (Ruxton How is this instead (Caffeine is especially common throughout†¦) 15). It is found very especially commonly throughout every day foods and consumed mostly though through coffee, tea, soda, and chocolate (Spiller 200). Many Americans participate in the use of caffeine; it is estimated that 90% of adultsRead MoreThe Effects Of Drugs And Its Effects On Society1670 Words   |  7 Pageseffects of drugs when they are about to use it. In today’s society, there are various types of drugs or substances that are either on the legal or illegal side. Just because a substance is legal does not make it beneficial and vice versa. The main categories of drugs are stimulants, depressants, and hallucinogens. The drug category that I would like to focus on is stimulants. The most heavily and frequently used stimulant, which is caffeine. 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Promotional Strategies for Cars in India free essay sample

This project is an effort to understand these promotional strategies adopted by different automobile companies in India. This project concerns with the study of choosing the 6 most appropriate mix of advertising, sales promotion, personal selling and publicity for cars in India with a detailed study of promotional strategy of Ford Fiesta. This project also targets the customers in India regarding the promotions of cars in India by reviewing and interpreting a questionnaire. Chapter 2 Literature Survey 7 Theoretical Framework and Review of Literature Promotional Strategy A successful product or service means nothing unless the benefit of such a service can be communicated clearly to the target market. An organizations promotional strategy can consist of: Advertising: Is any non personal paid form of communication using any form of mass media. Public relations: Involves developing positive relationships with the organization media public. The art of good public relations is not only to obtain favorable publicity within the media, but it is also involves being able to handle successfully negative attention. Sales promotion: Commonly used to obtain an increase in sales short term. It could involve using money off coupons or special offers. 8 Personal selling: Selling a product service one to one. Direct Mail: Is the sending of publicity material to a named person within an organization. There has been a massive growth in direct mail campaigns over the last 5 years. Spending on direct mail now amounts to ? 18 bn a year representing 11. 8% of advertising expenditure (Source: Royal Mail 2000). Organizations can pay thousands of pounds for databases, which contain names and addresses of potential customers. Direct mail allows an organization to use their resources more effectively by llowing them to send publicity material to a named person within their target segment. By personalizing advertising, response rates increase thus increasing the chance of improving sales. Listed below are links to organization whose business involves direct mail. Promotional Mix 9 Message and Media Strategy An effective communication campaign should comprise of a well thought out mess age strategy. What message are you trying to put across to your target audience? How will you deliver that message? Will it be through the appropriate use of branding? Logos or slogan design? The message should reinforce the benefit of the product and should also help the company in developing the positioning strategy of the product. Companies with effective message strategies include: Nike: Just do it. Honda City: The race lies within. Media strategy refers to how the organization is going to deliver their message. What aspects of the promotional mix will the company use to deliver their message strategy. Where will they promote? Clearly the company must take into account the readership and general behavior of their target audience before they select their media strategy. What newspapers does their target market read? What TV programmes do they watch? Effective targeting of their media campaign could save the company on valuable financial resources. Communication Model- AIDA 10 AIDA is a communication model which can be used by firms to aid them in selling their product or services. AIDA is an Acronym for Attention, Interest, Desire, and Action. When a product is launched the first goal is to grab attention. Think, how can an organization use it skills to do this? Use well-known personalities to sell products? Once you grab attention how can you hold Interest, through promoting features, clearly stating the benefit the product has to offer? The third stage is desire, how can you make the product desirable to the consumer? By demonstrating it? The final stage is the purchase action; if the company has been successful with its strategy then the target customer should purchase the product. Internet Promotion The development of the World Wide Web has changed the business environment forever. Dot com fever has taken the industry and stock markets by storm. The ecommerce revolution promises to deliver a more efficient way of conducting business. Shoppers can now purchase from the comfort of their home 24 hours a day 7 days a week. 11 Owning a website is a now a crucial ingredient to the marketing mix strategy of an organization. Consumers can now obtain instant information on products or services to aid them in their crucial purchase decision. Sony Japan took pre-orders of their popular Play Station 2 console over the net, which topped a 1 million after a few days, European football stars are now issuing press releases over the web with the sites registered under their own names. Hit rates are phenomenal. Advertisers have now moved their money over to the internet as customers are on average spending more time online then watching TV. Popular ways to advertise seem to be with banners and pop ups. Promotion Process for Cars Selecting the Target Market To say that target market selection is a part of promotional/marketing strategy development is just stating the obvious. Marketing targeting simply means choosing one? s target market. It needs to be clarified at the outset that market targeting is not synonymous with market segmentation. Segmentation is actually tee prelude to target market selection. One has to carry out several tasks besides segmentation before choosing the target market. Through segmentation, a firm divides the market into many segments. But all these segments need not form its target market. Target market signifies only those segments that it wants to adopt as its market. A selection is thus involved in it. 12 Marketing segmentation is a process that throws up not one but several market segments. There may be segments that are sizeable and the ones that are not so sizeable. There may be segments assuring immediate profits and the ones that call for heavy investments in market development. There may also be segments that show great potential, but display tough barriers to entry. As such, the question, which segment/segments, the firm should select as its target market, assumes crucial importance. Markets can be segmented using several relevant bases. For example, demographic characteristics of consumers, such as age, sex, income/purchasing capacity, education level etc, form one base for segmentation. Geographic characteristics constitute another; and buying behavior of the consumers forms yet another base. The various types of segmentations are Geographic segmentation, Demographic segmentation, Psychographic segmentation, etc. Product Positioning and Brand Positioning It is essential to understand the relationship between products positioning and brand positioning. Though in discussions, the two terms are synonymously and interchangeable used, technically they are different. Product positioning denotes the specific product category/product class in which the given product is opting to compete. And brand positioning denotes the positioning of the brand viz-a viz the competing brands in the chosen product category. It is evident that for any product, before entering the market it has to sequentially carry out the two exercises, product positioning and brand positioning. In the first 13 step, the product category where the new entrant should enter and compete, i. e. against what all products it has to compete, has to be decided. In this step, it is the broad function that the product is trying to serve that matters. This choice of product category will decide the nature of the competition the product is going to face. Once product category positioning is decided, the position for the new entrant against competing brands in the chosen product category has to be analyzed and fixed. Issues in Brand Positioning In deciding the brand positioning, the issues are: Which are the competing brands in the chosen product category? What are the unique claims/strengths of the various brands? What position do they enjoy in consumer? s evaluation and perception? What is the most favored position†¦? And yet vacant? Can the new brand claim the needed distinction and take the position and satisfy the need? Promotional Decisions Promotion has been defined as the coordination of all seller initiated efforts to set up channels of information and persuasion in order to sell goods and services or promote an idea. While implicit communication occurs through the various elements of the marketing mix, most of an organization? s communications with the market. The basic tools used to accomplish an organization? s communication objectives are often referred to as the promotional mix. 14 Advertising Advertising is defined as any paid form of non personal communication about an organization, product, service, or idea by an identified sponsor. The paid aspect of this definition reflects the fact that the space or time for an advertising message generally must be bought. An occasional exception to this is the public service announcement, whose advertising space or time is donated by the media. Advertising is the best-known and most widely discussed form of promotion, probably because of its pervasiveness. It is also very important promotional tool, particularly for companies, whose products and services are targeted at mass consumer markets. It is a very cost-effective method for communicating with large audiences. It can be used to create brand images and symbolic appeals for a company or brand. Direct Marketing One of the fastest-growing sectors of the U. S. economy is direct marketing, in which organizations communicate directly with target customers to generate a response and a transaction. It has become such an integral part of the IMC program of many organizations and often involves separate objectives, budgets, and strategies; we view direct marketing as a component of the promotional mix. 5 Direct Marketing is much more than direct mail and mail order catalogs. It involves a variety of activities, including database management, direct selling, telemarketing and direct response ads through direct mail, the Internet, and various broadcast and print media. One of the major tools of direct marketing is direct response advertising, whereby a product is promoted through an ad that encourages the consumer to purchase di rectly from the manufacturer. Interactive/Internet Marketing Interactive media allow for the back-and-forth flow of information whereby users can participate in and modify the form and content of the information they receive in real time. Unlike traditional forms of marketing communications such as advertising, which are one-way in nature, the new media allow users to perform a variety of functions such as receive and alter information and images, make inquiries, respond to questions and of course make purchases. In addition to the Internet, other forms of interactive media include CDROMs, Kiosks, and interactive television. Sales Promotion The next variable in the promotional mix is sales promotion, which is generally defined as those marketing activities that provide extra value or incentives to the sales force, the distributors, or the ultimate consumer and can stimulate immediate sales, 16 sales promotion is generally broken into Consumer-oriented and Trade-oriented activities. Consumer-oriented sales promotion is targeted to the ultimate user of a product or service and includes couponing, sampling, premiums, rebates, contests, sweepstakes, and various point-of-purchase materials. Trade-oriented sales promotions are targeted towards marketing intermediaries such as wholesalers, distributors and retailers. Effective Sales Promotion Sales promotion consists of diverse collection of incentive tools mostly short term, designed to stimulate quicker and greater purchase of particular products of services by the consumer. Sales promotion is the only method that makes use of incentives to complete the push-pull promotional strategy of motivating the sale force, the dealer and the consumer in transacting a sale. Price-Off Offers Price-off offers refers to offering the product at lower than the normal price. This encourages immediate sales, attracts non-users, induces product trail and counters competition. Premium Premium refers to the offer of an article of merchandise as an incentive in or to sell the product. Coupons In order to encourage product trail, stimulate re-purchase rate and build loyalty through news papers. 17 Dealer stock display context It is a type of point of purchase advertising which uses the show windows of the dealer for providing exposure to the sponsor? s products. Dealer participating enthusiastically and creatively are awarded. Publicity/ Public Relations Publicity refers to non personal communications regarding an organization, product, service, or idea not directly paid for or run under identified sponsorship. It usually comes in the form of a news story, editorial or announcement about an organization and its products and services. Like advertising, publicity is not directly paid for by the company. An advantage of publicity over other forms of promotion is its credibility. Another advantage of publicity is its low cost, since the company is not paying its time or space in a mass medium such as TV, radio or newspapers. Public relations are defined as â€Å"the management function which evaluates public attitudes, identifies the policies and procedures of an individual or organization with the public interests and executes a program of action to earn public understanding and acceptance†. Public relations generally have a broader objective than publicity, as its purpose is to establish and maintain a positive image of the company among its various publics. Personal Selling 18 It is a form of person-to-person communication in which a seller attempts to assist and persuade prospective buyers to purchase the company? product or service or to act on an idea. Unlike advertising, personal selling involves direct contact between buyer and seller, either face-to-face or through some form of telecommunications such as telephone sales. Personal selling involves more immediate and precise feedback because the impact of the sales presentation can generally be assessed from the customer? s reactions. FORD FIESTA About Ford The modern Ford India began production in 1998, although the roots trace back to 1907 when the Model A was launched. Its manufacturing facilities are in Maraimalai Nagar near Chennai. Ford India began production in 1926, but was shut down in 1954. Production began again with the joint venture Mahindra Ford India, Limited (MIFL) in 1995, a 50-50 venture with Mahindra Mahindra Limited. Ford increased its interest to 72% in 1998 and renamed the company Ford India Limited. 19 The first model was the Ford Escort, which was later replaced by locally produced Ford Ikon in 2001. It has since added Fusion, Fiesta, Mondeo, Endeavour and Endeavour Thunder+ to its product line. Key Products Ford Ikon Ford Fiesta Ford Fusion Ford Endeavour Ford Fiesta While Fiesta continued to impress people all over the globe, Ford had different plans for the Indian market. Ford engineers in Melbourne, Australia, designed a car from scratch specifically for the Indian market and badged it as Fiesta (2005). This sedan was sold with two engine options, 1. 4 Diesel (TDCI) and 1. 4/1. 6 Petrol. The 1. 6 Petrol version was marketed for its acceleration and performance to keep it competitive with other car makers. The Diesel version saw much success as its main 20 selling point was the fuel efficiency. Ford test delivered a whopping 30+Km/L Since cost of fuel was rising this was the right time for Ford to showcase its turbocharged direct-injection diesel technology. Ford claims to have sold more diesel variants than its petrol ones. Recently Ford gave some minor facial uplift to the well sold Fiesta and also reworked on safety features. Dual Airbag was included because the competitors the Suzuki SX4 and Hyundai Verna had this and other safety features. Ford Fiesta is engineered specifically to adapt the demanding Indian road conditions. It is a mid-sized car having a perfect combination of style and solidity. Politicians, Students, Doctors, any successful professional. Income: Upper Middle Income Group, High Income Group On the basis of Psychographic Lifestyle: Exciting, Trendy, Outdoor Oriented Social Class: Upper Middle On the basis of Geographic Region: Northern, Southern, Eastern, Western region of India Area: Metro cities, Semi-Urban and other Urban areas Adopting Offer to suit Target Segment Ford modifies its models for Indian target segments as shown below: 24 Higher ground clearance to make the car more compatible to the rougher road surface in India. Stiffer rear springs to enable negotiating the ubiquitous potholes on Indian roads. Changes in cooling requirement, with greater airflow to the rear. Higher resistance to dust. Compatibility of engine with the quality of fuel available in India. Location of horn buttons on the steering vehicles. (As the India motorist uses the horn more frequently, for cars sold in India, the horn buttons are kept on the steering wheel and not on a lever on the side as in the models sold in Europe. ) Market Competition Ford Fiesta comes in â€Å"C† segment „Sedan? and is available in both Diesel and Petrol variants in Indian Market. Along with Fiesta, other cars in this segment are Hyundai Verna, Maruti Suzuki SX4, Chevrolet Aveo and Tata Indigo Manza. Strategic Promotions by Ford 25 Ford follows the promotions at two levels, they a 1) Promotions of product directly by the manufacturer. 2) Promotions at dealer level. In the first step the products of vehicles manufactured by the Ford Automotives are directly promoted by the manufacturer by himself. He follows many promotional strategies like 1. Advertising through television and newspaper. 2. Internet or interactive marketing. 3. Direct marketing. In the second step the dealer of the vehicles promotes the vehicles. The various promotional strategies followed by the dealers are 1. Advertising though news papers, radios, palm plates. In this all the features of the product and its prices are given in detail to the customer. 2. By Hoardings, the promotion about the product and its features. Hoardings A heavy picture of the product which comprises of its attributes and special features are displayed on the roadsides in the form of hoardings. It is a bit expensive strategy but attracts many people who pass by that roadside. This type of advertisement is prepared for those segments of people who cannot afford their time in reading newspapers and watching televisions. While travelling from their home to office, moving on their business activities they may watch these hoardings. These hoarding are especially setup at the road signal stops. Maintaining Data Bank 26 In this the dealer collects personal/bio-data (address and contact number) of many people from various organizations and different sector who are ready to buy the vehicles and who change the vehicles regularly. These people are met-in person or contacted through their contact number. The various new features and new offers regarding the vehicles are advocated to them and are given discounts on group purchase of vehicles, i. e. if 5 or more friends in the group purchase the cars at a time then they are given special discounts on the vehicles. Free Insurance The dealers of Ford may give a special offer of free insurance on the purchase of each vehicle to its new customers. Relationship Marketing Fortune Ford pays a special attention towards its old customers. To retain the old and existing customers it conducts a corporate meet at a luxurious hotel. The event aims at knowing the problems of the customers regarding the vehicles and also service feedback. In this way it maintains an effective relationship with the customers and gains the reputation and goodwill in the minds of the customers. Sales Promotion 27 The sales promotion is done by ford at three levels: 1) Showroom Sales: In this the customers walk in to the showrooms to know about the details of the product. Specially trained sales executives who are present in the showrooms give a detailed explanation about the product to the customers. Sales executives give a detailed note on the products features, various offers given by the manufacturer and also by the dealer to the customer and enhance the sales of the vehicles. 2) Corporate sales: A special team of sales executives are sent to some big corporate sectors and there they personally meet the heads of the organizations like C. E. O? s, Managers, etc. , and explain about the vehicles and the offers and special schemes provided by the dealer to them on bulk purchase of the vehicles and try to promote the sales of the vehicles. ) Field sales: The sales executives conduct some events with the corporate working people and try to demonstrate the product features and its benefits and try to promote the product and increase its sales. Conducting Customer Delight Program 28 This is a unique program conducted by the dealers of Ford. This is a program conducted to retain the old customers of the Ford. The old customers of Ford are meeting personally and they are requested to g ive their feedback by filling in the questionnaire which is specially prepared for them. In this questionnaire their problems regarding the vehicle and also their post sale service experience are taken. If there exists any problem, then the Fortune Ford service men try to resolve the problems of their customers as soon as possible and makes the customer satisfied. This is a technique to attract the new customers by satisfying the old customers and gaining goodwill in the market. Extended Warranty The dealers of Ford Fiesta give an extended warranty to its customers where there will be extended time duration in the warranty. What is Extended Warranty? Factory Warranty covers only for a specific period of time/mileage. After the factory warranty expires, customer is exposed to the risk of parts failures. This is applicable for any machine/equipment/vehicle. Extended Warranty: Is an extension of Factory Warranty Offers almost similar coverage as Factory Warranty Comes with a time-bound (eg. 1yr/2yrs but unlimited mileage cap) 29 Covers all Mechanical and Electrical Failures Covers labor Why is extended warranty needed? Offers peace of mind motoring Protects against unexpected and non-budgeted expenses Can be transferred, hence increases the resale value. What does it NOT cover? Does not cover wear and tear of parts Does not cover scheduled service items Does not cover accident repairs Benefits to customer Protection from manufacturing and material defects Car can be repaired at any Ford out let across the country Unlimited number of claims No excess to pay One up-front payment only Inflation protection from rising costs of parts and labor All repairs carried out by qualified Ford technicians Warranty can be transferred when vehicle is sold – better resale value Total peace of mind.

Recruitment in Management

Introduction Recruitment is one of the management functions that are usually conducted through the human resource department. Technically, recruitment is defined as the â€Å"process of identifying and hiring the best qualified candidate from within or outside an organisation for a job opening in the most timely and cost effective manner† (French Rumbles 2005, p.170).Advertising We will write a custom research paper sample on Recruitment in Management specifically for you for only $16.05 $11/page Learn More In this process, the management plays pivotal roles in ensuring that the process is administered effectively and efficiently so that an organisation reaps optimally from the benefits of the candidate selected from a pool of applicants who possess different experiences and technical expertise. The implementation of the recruitment process is also done in a manner that ensures precise compliance to the set recruitment policies. Some of these pol icies include â€Å"affirmative action, equal opportunity employment, and non-discrimination† (French Rumbles 2005, p.170). For this reason, the specific things that the recruiting personnel look out from the applicants are set out before the recruitment is done. These specifics are laid out in the form of the job description. To come up with a concise and accurate job description, the human resource must work in collaboration within the hiring manager to develop it. In the same light, Fernando (2008) argues, â€Å"reviewing a job description is an efficient procedure to continually improve an organisation’s structure, as well as evaluating the competencies and wages for each position within the organisation† (p.8). Given the set out procedures and policies by an organisation for the administration of the process of recruitment, the main interrogative is how effective the concepts of recruitment are in ensuring that an organisation only hires those persons who only have outstanding qualifications. The focus of the paper is to give response to this query. Effectiveness of concepts of recruitment Merging talent management with recruitment An immense scholarly body of knowledge exists that attempts to set out the roles of recruitment in management of an organisation. Many approaches and models of recruitment have also been proposed with the chief intention of availing paradigms of approaching recruitment so that an organisation would secure highly professional capable workforce. These models include executive search, RPO, retained search, outplacement, and contingency hiring among others. While fully aware of the alternative ways through which an organisation can conduct recruitment, Fernando (2008) argues that talent management is a noble function that the recruitment team needs to consider (p.2).Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn M ore Indeed, he advocates for adoption of a holistic approach by management as the most suitable, effective and efficient approach of conducting recruitment. The main reason why an organisation commits its resources to conduct the recruitment process by either delegating the responsibility to the human resource department or outsourcing the service externally is to make sure that only the best candidates fill the job openings (French Rumbles 2005, p.170). Apparently, an organisation utilises people as capital so that it can generate more services and goods, which is necessary for organisations to become more profitable. Arguably, this entails commoditisation of people within an organisation. When this concept is applied to the recruitment process, it infers that the persons who would stand the highest probability of being selected are those who show and prove to the recruiting personnel that, through their physical effort, mental effort, or both, they can take the organisation to the next level in terms of enhancing its profitability. The argument here is that the central focus of recruitment is to tap professional talent from the pool of existing potential employees so that it can be utilised in the realisation of goals, missions, and aims of organisations. In recruitment, talent management is critical in enhancing the capacity of an organisation to select the right persons to fill job vacancies. The concept of talents management has three paradigms: talent identification, development of talent and talent motivation, and retention and engagement (Fernando 2008, p.1). The human resource management arm of an organisation enhances all these three aspects. Ideally, for effectiveness of recruitment in helping to enhance talent management in organisations, it is significant for it to be modeled to assume a central position in the entire process of talent development. This way, it can be utilised to ensure that it can be â€Å"directed to support strategic manage ment efforts to address the competitive dynamics of businesses enabling the organisation to win the market† (Fernando 2008, p.2).Advertising We will write a custom research paper sample on Recruitment in Management specifically for you for only $16.05 $11/page Learn More Wining the market implies increased potential of an organisation to place successfully its products and services. Therefore, the whole idea of talent management and its relationship with recruitment revolves around the needs to enhance the growth of an organisation’s productivity through commoditisation of the workforce. The success of recruitment functions in enabling an organisation to acquire human resources that would help it to face interactively with the future business dynamics is owed to the capacity of management to establish a link between recruitment and the future needs of the organisation in question. Fernando (2008) supports this argument by further positing, â€Å"Talent gaps to be filled through recruitment need to be defined from a strategic perspective† (p.3). Therefore, in case recruitment functions such as selecting and sourcing are accomplished from the dimension of old approaches that are outdated and narrow, a possibility surfaces that the concept of alignment of talent management with recruitment would be impaired. Consequently, â€Å"each key position filled needs to result to the organisation having a better aligned talent pool in terms of current competencies and or access to high potentials with the capability of being developed to meet the future strategic needs† (Fernando 2008, pp. 3-4). In the quest to achieve this, integration of a holistic approach to selection becomes crucial. Many organisations conduct recruitment after clearly defining the profiles of the desired person to fill a job opening, which is the approach of ‘ideal candidate’ recruitment. It seeks to â€Å"find the candidates wit h the required knowledge, skills, experience, behaviour, and attitude† (Fernando 2008, p.4). Comparatively, for the case of deployment of the holistic approach/model in recruitment, the chief concern is to evaluate and make sure that the selected candidate strongly fits with the organisation, the boss, work team, and the job requirements coupled with the anticipations of the position for which he or she is being recruited. After successfully recruiting the desired candidate, induction and training follow. However, through a holistic approach, such training would arguably consume less time since the model holds that the best candidate is the one who meets the demand of the organisational culture and values that guide the performance of the existing workforce of an organisation. Besides, he/she should fit well and work with a diverse work team.Advertising Looking for research paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Nevertheless, under the holistic approach/model to recruitment, the traditional approach is also not negated. Therefore, the selected candidate must also meet the experience, knowledge competencies, contacts, and skills that are set for the position. The tools that are deployed in the selection process under the holistic approach make the approach highly effective in enabling an organisation to get the right person who not only has the requisite professional qualification but one who can easily articulate with the set out codes of ethics and organisational culture. Such tools include psychometric tests, interviews that are competency-based, and skill tests among others. Psychometric tests are conducted to facilitate the evaluation of aspects such as personality, values, altitudes, and beliefs of the potential employee. On the other hand, skill testing is conducted to provide a means of evaluating the past behaviour and the particular skills possessed by the candidate. Consequently, the concept of the holistic approach to recruitment is enormously significant in ensuring that an organisation is capable to recruit a learning workforce. Such a workforce would introduce less friction when it comes to compliance with organisational culture. Recruitment: Leading, Developing, and Managing people Stemming from the arguments of the above section, the concept of the holistic approach to recruitment is ingrained within the concerns of providing mechanisms of enhancing the management to achieve one of its noble functions: recruiting in a manner that is efficient and effective. However, management has additional functions, which more often than not are interrelated. Such functions include leading, developing, and managing people. Consequently, it is crucial to examine how recruitment relates to these functions. In chapter 9 of Recruitment and Selection, French and Rumbles argue out that recruitment coupled with selection â€Å"play pivotal roles in the process of leading, managing, and developing people† ( 2005, p.171). The connection between leading, developing, and managing people is pegged on the argument that, in the absence of recruitment, people cannot be availed to an organisation for being developed, managed, and or led. Arguably, therefore, the entire idea of either employing or choosing not to employ is enshrined within the umbrella of managing people effectively within an organisation to realise the goals, aims, and missions of an organisation. However, in the recruitment process, fairness is of utmost importance. In this regard, French and Rumbles lament, â€Å"issues associated with exclusion from the work place also highlight the need for professionalism, fairness, and ethical behaviour on the part of those engaged in the activity† (2005, p.173 ). Consequently, the model deployed to acquire human resource in an organisation (recruitment) does not matter. Rather, recruiting the right persons is dependent on factors such as fairness and elimination of unethical conducts during the recruiting process. For the success of an organisation in executing its managerial functions of leading and managing people to yield optimal performance, the available workforce should be committed to the organisational culture and strategic goals. Such a workforce is availed through recruitment. In support this line of argument, French and Rumbles argue, â€Å"Recruitment occurs not just to replace departmental employees or to add workforce, rather, it aims to put in place workers who can perform at a high level and demonstrate commitment† (2005, p.171). This implies that recruitment plays proactive roles in making it possible for an organisation to attain organisational performance and outcomes that are positive. Fernando (2008) argues that recruitment needs to be factored in organisation’s approaches to strategic management (p.4). French and Rumbles also recognise the significance of this concern by further a sserting, â€Å"recruitment is often presented as a planned rational activity comprising certain sequentially-linked phases within a process of employee resourcing, which itself may be located within a wider HR management strategy† (p.178). In this sense, recruitment may be perceived as involving a topical issue while attempting to seek the manner in which it enhances the management to achieve its noble functions. Apparently, when the discipline of human resource emerged, recruitment has significantly contributed towards helping the management to cutely manage and lead the organisation’s workforce because, without the right workforce, orienting it to the desired ends (leading) is a nightmare. Essentially, the contribution of an enhanced recruitment process in aiding the management to execute its managerial functions is more significant in the age where many organisations are considering the employees as the most subtle resources for achieving a competitive advantage. C onclusion In any organisation, the management has a number of responsibilities. Among them is the need to lead, develop, and management people. The people who are led, developed, and managed are acquired through the process of recruitment and selection. In this paper, it has been argued that the organisation’s workforce is an essential resource that enables the organisation to produce services and goods. For optimal profitability of the organisation, the paper has held that it is crucial that recruitment is done so that only persons who can be oriented to the specific missions, goals, and aims of an organisation are hired. Consequently, the paper discussed that it is crucial to conduct recruitment from the concept that an organisation seeks people who would provide easy grounds for the management to conduct its functions of management among them being leading, developing, and managing of people. In this end, the concept of talent management and its relationship with recruitme nt is crucial. References Fernando, K 2008, ‘Aligning Recruitment to Talent Management Efforts’, Asia Pacific Journal of Management, vol.3 no.1, pp. 1-7. French, R Rumbles, S 2005, Recruitment and Selection, Mc Graw- Hill, New York, NY. This research paper on Recruitment in Management was written and submitted by user Phasma to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.