The Role of Others in the Formation of the Self Essay

To many, it may seem others play an important role in the formation of self. When we interact with others, make comparisons with others and live out our social roles we seem to be affected – so we assume that so is the formation of our â€Å"self†. In reality, it isn’t affected. With an idealist view of a non-physical self, that also possesses continuity and unity it can be exposed how flawed this view of self is, and how others play no role whatsoever in the formation of the self. However, our sensory knowledge which is deceptive, leads us to believe in an incorrect view of self, causing the illusion of the importance of the role of others in the formation of the self. Initially, we must realise our view of self may be mistaken, so before†¦show more content†¦Dualists, such as Descartes have presented fairly weak responses to the problem, who stated that the casual interaction takes place in a physical gland in the brain. Hence, most plausible is idealism, which presents a purely non-physical self, and outlines how the so-called â€Å"real-world† is inseparable from our mind and its perceptions, and we are simply deluded to believe that it is the ultimate reality on its own. Just as when we are sub-conscious or in a dream, what we experience seems to exist and is real – only until our awakening into a conscious state do we realise it is not. For the only difference between experiencing a â€Å"dream† and â€Å"worldly reality† is our doubt of events that may occur (we know we cannot fly in reality but may accept we can in a dream). Similarly, it is our ignorance and false perception that leads us to believe in the world as the ultimate reality. Only if we reach a â€Å"super conscious† state that is, to unite with our true self – the ultimate reality, can we understand the fallacy of our perceptions about the world. But an idealist view of a non-physical self is not enough to answer the problem. For, it could be our ego, or the mind but we must realize the self is deeper than this. The â€Å"Self† is not only deep and immaterial, but an absolute, eternal and indestructible entity that is the pure consciousness and ultimate reality - free from illusion and falseShow MoreRelatedAdolescence Is A Transitional Period Of Physical And Psychological Development1313 Words   |  6 Pagesexploratory developmental experiences including, identity formation, development and growth. During this period adolescents are in the process of furthering social relationships, of finding their place in society, and of making important choices for their future lives. While it’s a time for tremendous growth and potential, on the path of identity, the individual encounter many challenges such as struggling with the idea of self-concept or/and self-esteem which exert powerful influences. The psychologistsRead MoreSpiritual Formation1595 Words   |   7 PagesSPIRITUAL FORMATION THROUGHOUT THE LIFESPAN BY SOMMER BARNES LIBERTY UNIVERSITY ONLINE Abstract In this research paper, I will try to illustrate my hypothesis of spiritual formation throughout the lifespan by using my interpretation of a collection of theories. The theories I will refer to include Piaget’s Cognitive Development Theory, Erikson’s Psychosocial Theory, and Kohlberg’s Development of Moral Reasoning Theory. In Piaget’s Theory of Cognitive Development, he develops a theory of cognitiveRead MoreCreating Meaning and Identity through Consumption Essay1307 Words   |  6 Pagesidentities through consumption, this means more than to consume products which are needed to survive, consumption can also link to self-identity formation and expression. People are imperceptibly influenced by the mass media that self-identity can be shaped and formed through consuming specific products. 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Persuasive Essay On Homeschool - 834 Words

Imagine a child who has never experienced the joys of a school dance, never had the chance to participate in a formal graduation, and was never able to experience the small joys of pleasant cafeteria banter: this is the life of most homeschooled children. Today, most students will attend typical public or private schools, but a few students choose to travel down different paths like homeschooling. Homeschooling is a form of education that is primarily taught at home and typically involves one-on-one learning from a private teacher or educated parent. Each homeschooled student follows a somewhat structured curriculum based on state guidelines. Homeschool is very much like public school except, with few distractions. I, personally, would†¦show more content†¦As the year progressed though, she seemed to wilt like a flower. She was no longer happy and preferred to be alone. She transferred out of my elementary school the next year, and I never saw her again. I only found out yea rs later that she was tirelessly bullied for her delayed speech and odd behavior. It saddens me to think that she left school because of that, but it’s probably for the best since the bullying may have gotten worse if she stayed. I’m sure she is very happy in her new homeschooling program. My other friend, Sam is the complete opposite of Cali, yet he still ended up being homeschooled. Sam decided to leave school around the third grade because he simply wasn’t challenged enough and grew uninterested in school altogether. It was rumored that he had a IQ of around 190 and was working on Algebra II at home with the textbooks his parents got him for Christmas. He spoke Spanish and Chinese and he seemed to have no flaws besides the fact that he was socially awkward. After he transferred out of our school, he started experimenting with chemicals during his free time after homeschool. He discovered that McDonalds chicken nuggets have traces of plastic in them and he won a national prize for his discovery. He finished homeschool and graduated in two years. I now hear that he is attending some tiny unnamed college in Canada studying to be a STEM researcher. Sometimes people can accomplish the craziest of things if you just give them the opportunities toShow MoreRelatedPersuasive Essay On Homeschool1764 Words   |  8 Pagesa bad/poor parent did. However, for many reasons, between 2007 and 2013, the number of homeschooled students raised 17% (Carter, 2015). Have you ever wondered why people would choose to homeschool when it has commonly had a less than positive reputation? A significant number of people who choose to homeschool have said that they chose that route due to moral or religious reasons, however, the National Center for Education reports that 74% of homeschooling parents said it is due to the environment

An International Marketing Management Commerce Essay Free Essays

International Marketing Management assignment gave me the chance to larn and research on this interesting subject. I have some cognition already about that how companies enter into new markets and how they capture and attract new markets but this chance helped me to cognize more about how companies go globally with the aid of available different market entry schemes and expand their concerns. Part-1 Discuss the normally held belief that there is no individual market entry scheme which is appropriate in all fortunes. We will write a custom essay sample on An International Marketing Management Commerce Essay or any similar topic only for you Order Now Different market entry schemes available throughout the universe depend which state you are. There are different methods and processs geographically, the nature of the concern is besides the chief point and particularly the worth and compatibility between two or more involved parties. The celebrated good known market entry scheme regulations are same globally. Companies ever go for different market schemes to come in to new markets it ‘s non possible to follow the same market entry scheme for all concerns and for all organisations. When any company plans to come in in other abroad market there are assortment of options available for companies but it involves really high costs, hazard and takes long clip to detect and take concluding measure to acquire in. The simplest and the traditional entry scheme is exporting utilizing both ways direct or indirect methods such as agent or an intermediary individual. hypertext transfer protocol: //www.fao.org/docrep/w5973e/w5973e0b.htm Further below I have mentioned and explained the market entry schemes which are normally followed by organisations to come in to abroad and international markets. There are following schemes largely used by big, SMEs and fabrication companies which are: Licensing Exporting Foreign Direct Investment Joint Venture A ; Alliances Franchising Mergers A ; Acquisition Green Field Strategy Green Field Strategy A green field scheme is to come in into a new market without the aid of another concern who is already at that place. An acquisition is the antonym of a green field entry. Exporting Exporting is described as the selling and the gross revenues of local manufactured goods in abroad which is traditional and good cognize established method to capture abroad markets. The advantage is that in exporting it is non required that the specific merchandise must be produced in the mark state, during exporting no foreign investing is required but the disbursals and costs involves for exporting and holding a good concern is that exporter demands to pass on selling. Licensing The proprietor of any trade name or the company who holds the rights and they give the permission to utilize rights against money in order to selling those different merchandises to the universe by different parties. These sorts of merchandises are largely intangible and non possible to copy by others because of hallmarks, patents and merchandise techniques. The licensee is the individual who pays to acquire rights of utilizing license rights. Licensing is good for licenser and licensee both earns good net incomes but there is hazard for licenser if the licensee does n’t maintain the criterions and good quality controls because this will damage the image of trade name. Joint Venture Joint venture is a celebrated term and we have many illustrations in our practical life. It helps companies to turn like one plus one is equal to three. When same nature of concern articulations and work together it assist a batch and opportunities of positive results addition. The aims involved in joint venture are: Market Entry Risk/Reward Sharing Technology Sharing Joint Product Development Skills A ; cognition sharing Conforming authorities ordinances Few issues are thinkable before go for joint ventures like ownership, contract length, control, pricing, engineering transportation and resources. Foreign Direct Investment ( FDI ) Foreign Direct Investment is investing which you can do straight in any state but different things includes before you go for FDI like regulations A ; ordinances, permissions, transportation of capital, forces and engineering. FDI can go on with the aid of constitution of the new endeavor or may be through the acquisition of an bing entity. Direct ownership helps to hold a good control in the operations, competitory environment and to better cognize the consumers. A good illustration of FDI is Euro Disney when Walt Disney had a challenge to construct Disney park in Europe they chose the foreign direct investing. Mergers A ; Acquisition Merger word merely explains the assemblage of something. Mergers is concern word is when different companies manus shingle and promise to work together called amalgamations. One plus one is equal to three, this sentence is rather celebrated in amalgamations state of affairs. It works to make stockholder value over and above that Sun of the two companies. After unifying the worth of both companies is more valuable than two separate entities. There is somewhat difference between amalgamations and acquisition. When a company takes over other company and go a new proprietor it is called as acquisition and when two companies ‘ merges and work together is called amalgamations. A good illustration of meeting is YouTube amalgamations with google.com. Franchising Franchising is a method of utilizing successful available concern theoretical accounts. Franchisor gives permission to Franchisee to utilize the rights of that concern theoretical account. With the aid of that theoretical account franchisee sells and markets the merchandises and services. It ‘s more like to hold distribution of specific hallmark and the franchisee pays in return what services and merchandises they use in their concern. Very good illustrations of franchise in today universe are McDonalds, Burger King, KFC, Subway and New York Pizza. hypertext transfer protocol: //www.quickmba.com/strategy/global/marketentry/ hypertext transfer protocol: //www.magnetsigns.com/franchising.php hypertext transfer protocol: //en.wikipedia.org/wiki/Market_entry_strategy hypertext transfer protocol: //www.investopedia.com/university/mergers/mergers1.asp Above mentioned different market entry schemes help different concerns to turn but it depends on the nature and size of the concern besides. This is really of import how large or little is the company and how much it deserving. Different types of houses are: Different types of houses constructions fundamentally used which are called, Small A ; Medium Enterprises, Manufacturing, Services Based, and Multinational corporations or Global houses. Small and Medium Enterprises Small and medium endeavors ( SMEs or Small A ; Medium Buisness ) are the companies who have limited turnover and below certain bounds. This term is widely used in EU and in international organisations such as UN and WTO. This term is predominately used in USA and Canada. Traditionally in EU it was different and they had their ain definitions bit non they have standardized the construct. e.g.. Companies with less than 10 employees called micro, companies holding employees less than 50 called little and 250 employees as medium. Manufacturing Firm Manufacturing house can be from any industry which produces merchandises from natural stuffs utilizing labour land, machines and capital. In other manner fabricating house is a company who assembles goods into finished signifier for terminal users to carry through their demands. Fabrication houses can be automotive, vesture, electronics, furniture, machinery, steel, crude oil merchandises and tools etc. hypertext transfer protocol: //www.answers.com/topic/manufacturing Service Based Firm Any services based house is a concern that provides installations and work attempts for the others and charges them for these services and most of the times the services based houses provides their services harmonizing to contract footings. Netherlands is the really good illustration of supplying services, they supplying their accomplishments and techniques worldwide. hypertext transfer protocol: //www.answers.com/topic/business-service-firm Multinational Corporations Multinational Corporation is a house that has its installations, operations and assets in at least one state other than its place state. This type of house has offices and mills in different parts of the universe. One caput office in center of all and from their control and instruct planetary direction. Above I have explained and mentioned besides when its utile to utilize which market entry scheme and for what type of an organisation. But there is something else besides really considerable issue like before come ining to any market demand to mensurate degree of hazards, political hazard, fiscal, civilization factors and geographic distance. Plague is used to mensurate different hazards and larn how its possible to get by that hazards. But I have used a revised version called PESTLE analysis which is more suited in this instance: PESTLE Analysis PESTLE stands for â€Å" Political, Economic, Sociological, Technological, Legal and Environmental † factors. Its utile tool to understand the state of affairs of any market and larn good before you step in to that market it helps to hold a clear position for your concern. The possible inquiries for any house are: What are the cardinal political factors likely to impact the industry? What are the of import economic factors? What cultural facets are most of import? What technological inventions are likely to happen? What current and at hand statute law may impact the industry? What are the environmental considerations? A A Political Current revenue enhancement policy Future revenue enhancement policy The current and future political support Grants, support and enterprises Trade organic structures Consequence of wars or declining dealingss with peculiar states Economic Overall economic state of affairs Strength of consumer disbursement Current and future degrees of authorities disbursement Ease of entree to loans Current and future degree of involvement rates, rising prices and unemployment Specific revenue enhancement policies and tendencies Exchange rates Sociological Demographics Lifestyle forms and alterations Attitudes towards issues such as instruction, corporate duty and the environment Social mobility Media positions and perceptual experiences Cultural and spiritual differences Technological Relevant current and future engineering inventions The degree of research support The ways in which consumers make purchases Intellectual belongings rights and right of first publication violations Global communicating technological progresss Legal Legislation in countries such as employment, competition and wellness A ; safety Future statute law alterations Changes in European jurisprudence Trading policies Regulative organic structures Environmental The degree of pollution created by the merchandise or service Recycling considerations Attitudes to the environment from the authorities, media and consumers Current and future environmental legislative alterations hypertext transfer protocol: //www.marketingminefield.co.uk/marketing-plan/pestle-analysis.html Part-2 Franchising is the common method of come ining services markets abroad. What is the particular attractive force of International franchising to both spouses? What is franchising? Franchising is a signifier of entrepreneurship. Harmonizing to Shane and Hoy ( 1996, p 325 ) there have been surveies about entrepreneurship, but the country of franchising has stayed rather undiscovered. There are many things that make franchising particular compared to other signifiers of entrepreneurship. Franchising can be described as a strategic cooperation between two parts – the franchiser and the franchisee. They are runing under the same company name every bit good as utilizing an indistinguishable concern thought and a concern construct. The franchiser is the chief proprietor of the concern construct and the company name and licences the right of utilizing these further to the franchisee against certain fees and royalties. The franchiser normally has a contract with several franchisees at the same clip. ( Shane and Hoy, 1996, p 325 A ; 326 ) . Franchising is a popular concern format in the retail concern ( Kaufmann and Dant, 1999, p 11 ) . In 2003, 43 per centum of all franchising activities in Finland took topographic point in retail concern ( see figure 1 on the following page ) . This is 76 per centum of the registered franchising ironss wholly. ( The Finish Franchising Association, 7.7.2006 ) Franchising can be really attractive to franchisees since many franchisin g companies offer and even necessitate much cooperation along the manner. In comparing to a pure entrepreneurship, with franchising relationship the new franchisee is provided with a complete and tried concern thought, established hallmark and aid with startup. In add-on, the franchisee gets supplier price reductions every bit good as support from experienced subdivision and market experts through a web of other franchisees and company employees. ( Franchisenet, 7.7.2006 ) This said, the franchisee gets multiple competitory advantages compared to pure enterprisers on the concern ( Kaufmann and Dant, 1999, P 1112 ) . For the licensee, the negative side of franchising is that the franchisee is bind to obey the general understanding, which is normally really rigorous. Therefore the franchisee has an highly limited freedom to run. ( Franchisenet, 7.7.2006 ) For the franchisee the relation can be said to be something between a regular payjob and pure entrepreneurship and is frequently a measure in passage from the former to the latter. Franchising is a manner to pattern entrepreneurship. In a franchising relationship the franchisee is the proprietor of his ain concern but is still connected to a bigger organisation and being supervised. It has to be noted, though, that the franchisee is the one bearing the fiscal hazards of the concern. However, since franchising companies normally select their franchisees carefully the hazard for neglecting in this concern is less important than in the pure entrepreneurship. ( Kaufmann and Dant, 1999 ) More information about franchising and franchising chances can be found in following web pages: www.franchiset.net, www.franchising.org and www.franchising.com. Professionals of Franchising, how it helps franchisee to derive capital and how it allows houses to spread out fundamentally utilizing the possible franchisees ain capital. Opportunities of Success The opportunities of success are high when you are holding franchise sort of concern because you do concern of that merchandises and services which are worldwide celebrated, proven and recognized. Its easy to see how successful franchising and this sort of concern are ever expand and turn really fast, franchising usher you through the whole procedure of concern and usher you with their experiences and makes you successful besides by independent concern. In short in franchising the opportunities of success are ever high. Avoid Start up Mistakes Franchising helps you and do really easy to star up your franchise, this is truly helpful and salvage you from initial which largely happen when you start new concern. But while franchising the experts already experienced that sort of hurdlings so they know really good how to salvage your ego from loses and hazard while get downing new concern at new location. Brand Awareness This is the large great impact for you when you buy any constituted local, national, international or planetary trade name, you do n’t necessitate to make selling battles because people are already cognizant of that brands gustatory sensation and cognize good the value. Franchisee enjoys the name acknowledgment and the big familiar company associated with you. Product and Service Acceptance Franchise contains standard merchandises and provides the same criterion merchandises to their all franchisees ; due to the extremely established standard the merchandises are extremely acceptable. This is a large benefit of client consciousness which usually takes ling clip to construct this sort of trust for your clients. Mugwump but non entirely To be franchise proprietor is a great thing because you do n’t necessitate to worry that much, you work hard but on the other manus the franchisor squad helps you a batch to construct your concern strong. You get fiscal security for your household, earn more money and all is yours after paying other costs. This franchising web reduces your hazard and allows you to bask the success of that clip what you have word hard. Training and Support Franchisor provides besides different preparation Sessionss and different sort of support at each measure where you face any job. These preparation and support helps to be successful in your concern and salvage you in future signifier dearly-won errors and cut down hazards for you at all degrees. Peer to peer networking Peer to peer networking give you entree to the web of concern proprietors who are in the same concern and have experienced and sing the state of affairs which you might confront besides. So this networking helps each others how to acquire rid from different difficult times and jobs. Its great advantage and invaluable chance for proprietors. Buying Power It involves the economic systems of graduated table the franchisor maintain criterion and purchase merchandises from good known and trusted provider where they can answer they will hold the same gustatory sensation and size of merchandises ever. The franchisor ever have good and high degree relationships with providers and providers besides cares a batch because of holding large purchasers for their merchandises. In the same manner the franchisor provides the good value of goods to their franchises and clients. Ongoing Development Development in any concern is really of import otherwise companies do n’t last for long clip. Better criterions, working conditions ; add new engineerings and accomplishments are really of import. Another advantage for the franchisee is that franchisor provides the costs for these sort of developments and seek their best with the aid of their development squads to procure the hereafter of the concern. It a large support for single and these supports are really supportive and sufficient to merchandise development. Fiscal Support If fiscal support is needed and you are in concern with a recognized and good cognize franchisor it will assist you to acquire finance really easy. Because the loaners believe that you are linked with a good web concern and they can trust and experience less hazard to impart money if the concern is a portion of the well structured concern theoretical account and system. Company Wide Connections If you clients demands occupation and you are non able to supply or assist so there are still possibilities to utilize your franchises web and that will assist you to happen the needed demands. They try their best to assist you and happen similar concern for you. Individual Roles with Common Goals Every concern major jail is net income if there is non net income than no concern besides. Franchisees aim is to run a profitable concern and grow with seeable alterations and back up the franchisor concern systems and to give more value to trade name. Oppositely franchisor has to give a healthy leading and clear ends to assist franchisees to turn and protect the trade name. This common apprehension and aid physiques trade name stronger. Deriving a Competitive Edge Business gets competitory border with the aid of sharing resources, accomplishments and cognition. Selling your Business First there are really few opportunities that a franchisee would wish to sell because they want to lose a fixed sort net incomes and a good concern. But sometimes it happens proprietors came in fiscal job and decided to sell. Whenever you decide to sell a franchise it is attractive and likely to sell really fast at higher monetary value. Working together is Smart and Fun Working together in squads and with common apprehension is great and large merriment besides. Franchise provides people chance and opportunities to run their egos independently. Gives more bravery and experience free to work and utilize their divine ideas. This is because of the big organisation regulations criterions and good relation of employees. Some disadvantages of franchising and hazard involved for franchisee. To follow a system All Franchises have their ain concern theoretical accounts and they operate and require their franchisees besides to follow the the same concern theoretical account in all state of affairs and there is no flexibleness in that instance. If person found pretermiting the regulation and ordinances of that theoretical account they will penalized. The processs, regulations and ordinances vary between franchise concerns. Fees The franchise is bound to pay for the initial colony and franchise fees, preparation, selling and other costs which incurred during puting up new franchise. Trading Area Before you get settled franchises the franchisee provide a feasibleness study and inquire for the permission to hold concern at coveted country or location. If they accept so you can continue farther otherwise you need to subject a new location program. Restrictions Many limitations involved besides which bound the franchisee to take different actions. Franchisee non allowed to purchase merchandises or services from any station, there is listed and recognized provider which you can utilize to purchase needed merchandises. You can non sell straight your concern you need a permission of franchisor and so you can take farther stairss to sell your concern. Controls You need to command on regular bases and the squad of from franchisor is sent on a regular basis besides for controls. If they found any irresponsibility and lack you can be in large job and it non acceptable at any cost because this sort of sloppiness amendss the trade name image and concern. Franchising is spread outing rapidly in developing states besides and it ‘s good to both parties. It provided occupations and the trade names proprietors gaining money and turning their name worldwide. There are some hazards involved besides for investors and the trade name proprietors which I described above. Franchises get engineering, accomplishments and concern transportation in their states and it helps to better state economic system. The local concern attempt to copy that concern theoretical account but they are non allowed to make 100 per centum but still they do it increase competition but still the universe recognised trade names have more penchant among clients that why franchisee take hazard of investing. How to cite An International Marketing Management Commerce Essay, Essay examples

Impact of Gst free essay sample

FMCG sector with a market size of $13. 1 billion is the fourth largest sector in the economy. A well established distribution network, intense competition between the organised and unorganised segments characterises the sector and makes it a unique sector. Even at the time of recession, growth in FMCG sector has not slowed down which makes it an important contributor for tax revenue. In fact, among the MNCs, their Indian arms have contributed more to parent entities than foreign counterparts because of the large market size and domestic consumption. This is one of the reasons why the government has never provided much direct incentives or benefits to this sector. From a tax perspective, FMCG sector has been constantly contributing at the highest rate to the government kitty, more so from the perspective of indirect tax on account of its nature of taxation which is levied on consumption rather than income. In India, indirect tax has a multiple tax structure — taxes at central level such as excise, service tax and customs, and taxes at state level such as VAT and entry tax. Further, there are local levies like octroi. On account of various taxes, the total tax impact on FMCGs is almost 20-30% which is among the highest in the world. From time to time, the government has provided certain benefits in the form of location incentive which has been utilised by the FMCG sector. For example, excise benefit granted in the state of Himachal Pradesh and Uttarakhand has made most of the FMCG companies to locate their manufacturing facility in the hilly states. These benefits were limited to companies that had set up their operations prior to March 31, 2010, due to which the companies were not able to expand their operations since the benefit would have not accrued to them. However, by a recent circular, the ambiguity has been cleared. Now, even expansion would be eligible for the benefit though the same would be restricted to the initial period of 10 years. This has brought a new lifeline to the FMCG sector, which would help them to expand their capacity. In addition to these multiple taxes, the real complexity for the sector is the variance in tax rates. Excise duty rate varies from 4% to 10%, and VAT rate varies from 4% to 15%. Further, what is more worrying is that there is no consistency of VAT rate for a same product in all the states. For example, health drink is taxable at 5% in Maharashtra, while the same product is taxable at 12. 625% in Kerala. Though VAT was expected to have a unified tax rate system across the country, the same could not stand up to its expectation. Even after almost six years of the introduction of VAT, instead of moving forward from an ill-fated sales tax regime to a coherent VAT regime, we seem to be going backwards. The states have forgotten the basic principle of having standard tax rate across the nation. Most of the states have changed the agreed VAT rate of 4%/12. 5% by either enhancing the VAT rate or toting up taxes in addition to VAT. Gujarat was the first state to increase the rate, followed by Andhra Pradesh, Haryana, New Delhi, Maharashtra and others. Also, there are various classification disputes which have not been settled under the VAT period. For example, whether ghee, which is used by both consumer and industries, can be classified under industrial input schedule? Also, whether entry for drugs and medicines would cover even medicated goods. Some states include the same while in other states the dispute continues. There are many such instances for which there is no answer. In such a scenario, tax authorities continue to levy tax on a whim and the industry has no alternative but to litigate with a hope that at some level good sense shall prevail. In addition to VAT and excise duty, there is Central sales tax. To trounce the CST impact, businesses have located themselves in each state, though the same was also done to get closer to customers. Presence of FMCG sector in almost all states has created other challenges in obtaining entry permit/way bill, which hampers free movement of goods. It is still difficult to answer why a country needs to have so many barriers for movement of goods. It can be understood that states want to have some checks to control tax leakages but that should not be at the cost of business. The real reason for having check post and permits has vanished and is being misused by tax authorities. Today, in states like Uttar Pradesh, authorities are holding business at ransom for way bills. Such controls have only created hassles for the industry. It’s time we learn from global economies the way to provide freedom to businesses. For example, the European Union still does not have such complex procedures and barriers for movement of goods from one member country to another. However, a silver lining is the advent of GST. GST promises to be the most significant initiative of independent India. GST would result in a major rationalisation and simplification of the consumption tax structure at both the Centre and state level by replacing all central and state level indirect taxes such as VAT, excise duty and service tax. GST is the most ambitious indirect tax reform in India ever attempted and aims to create one â€Å"borderless† domestic market. It will tax â€Å"consumption† against â€Å"production†, which is the current norm. GST would have immense impact on the industry, especially the FMCG sector. GST would be a tax on transaction, which would be neutral to factors of production, business processes, business models, organisational structures, product substitutes and geographical locations. Business can function and take decision based on commercial perspective rather than tax impact. Business would have to start challenging the existing business structure and start planning whether the same needs to be continued in GST scenario, for example whether depots are required in all states, since CST would not be in existence. It is a fact that the government has to take various steps on IT and administrative set up so that GST is implemented. There is continuous discussion on GST model, rate structure and other attributes but there are no clear answers. It is critical that industry starts identifying various areas such as classification, rates, treatment of present incentives, faith in check post to represent before the empowered committee and the government so that there is a smooth transition to GST and there is no adverse impact. We hope that in the coming Budget, the government gives a clear direction on the implementation of GST so that air of ambiguity gets clear. Companies investing Rs 100 crore or more in plant and machinery during the period FY14 and FY15 will be entitled to deduct an investment allowance of 15% of the investment. Increase surcharge from 5% to 10% on domestic companies whose taxable income exceed Rs 10 crore. In case of foreign companies who pay a higher rate of corporate tax, surcharge to increase from 2% to 5%, if the taxable income exceeds Rs 10 crore. Current surcharge increased from 5% to 10% on dividend distribution tax or tax on distributed income. Concessional rate of tax of 15% on dividend received by an Indian company from its foreign subsidiary proposed to continue for one more year. Removal of cascading effect of DDT in a multi-tier structure where dividend received by a domestic company from its subsidiary (which is also a domestic company) is distributed to its shareholders. Work on draft GST Constitutional amendment bill and GST law expected to be taken forward. sum  of Rs 9,000 crore is set apart in the budget towards the first installment of the balance of CST compensation No change in the normal rates of 12% for excise duty and service tax. No change in the peak rate of basic customs duty of 10% for non-agricultural products. Education cess to continue at 3% No revise either the slabs or the rates of Personal Income Tax. However, relief for Tax Payers in the first bracket of Rs 2 lakh to Rs 5 lakh. A tax credit of Rs 2000 to every person with total income upto Rs 5 lakh. Surcharge of 10% percent on persons (other than companies) whose taxable income exceed Rs 1 crore to augment revenues. Allocation of Rs 80194 crore in 2013-14 for Ministry of Rural Development marking an increase of 46%. The tax rate in case of non-resident taxpayer, in respect of income by way of royalty and fees for technical services as provided under section 115A, is proposed to be increased from 10% to 25%. This amendment will take effect from 1st April, 2014 and will, accordingly, apply in relation to the assessment year 2014-15 and subsequent assessment years. Custom Duty on specified machinery for manufacture of leather and leather goods including footwear reduced from 7. 5% to 5%. Excise duty on cigarettes is being increased by about 18% on all cigarettes except cigarettes of length not exceeding 65 mm. Cigars and cigarillos duty is also being similarly raised. Basic customs duty on hazel nuts is being reduced from 30% to 10%. Basic customs duty on dehulled oat grain is being reduced from 30% to 15%. Export duty of 10% on de-oiled rice bran oil cake is being withdrawn Industry Expectations No hike in excise duty hike on FMCG products The rate of central excise duty on the 65 mm filter cigarette slab be reduced from the existing level of Rs 689 per thousand cigarettes to Rs 200 per thousand cigarettes. The rates of central excise duty for the other slabs of filter cigarette be reduced, or, at the very least, no further increases in duty for these slabs. A hike in Gold import duty Existing exemptions being granted to Food Processing Industry (either in the form of Nil rate of duty / 2% rate of duty) should be continued and no new levy introduced in the forthcoming Union Budget on Food Processing industry Expects to provide some relief by reducing excise duty on Packaging materials used in the food industry Printed Laminates, Pet Jars, Corrugated Cartons from 12% to 6%. Increase in allocation of resources towards NREGA and Bharat Nirman Concrete announcement regarding roll-out of GST Rural focus of the budget and direct tax relief for the middle class Budget Impact Budget imposed excise duty on cigarettes is being increased by about 18% on all cigarettes. Last year there was 21% excise duty hike in cigarette. ITC is expected to pass on this entire 18% hike to consumer. The MNC company’s subsidiaries which pay royalty and fees for technical services to their parents companies outside India will have to 25% tax on it. A 46% rise in allocation for Ministry of Rural Development augment well for FMCG companies, as rural region contributes around 25% to 50% of total revenue to FMCG companies. Stock to watch ITC, Marico, Nestle [ Get Quote ], GSK [ Get Quote ] Consumer, Colgate Palmolive, HUL Outlook The budget was negative for the FMCG sector. There was no major announcement for the sector. There was no rise in income tax slab this time which was very essential looking at less discretionary income in hand of consumer and fall in volume of FMCG companies. However, rise in allocation for Ministry of Rural Development augment well for FMCG companies. The budget is a negative development for the cigarette industry particularly for ITC considering that after last year’s 21% excise duty, this year also there was 18% rise. ITC is left with no choice except to pass on the hike to consumer. Volume are expected to see dip initially, before recovering. Challenges With the growth drivers in place, there are many issues and challenges the sector grapples with. The key challenges faced by FMCG sector players in. India are as follows: Tax Structure Complicated tax structure, high indirect tax, lack of uniformity, high octroi entry 1. tax and changing tax policies. Infrastructural Bottlenecks Agriculture infrastructure, power cost, transportation infrastructure and 2. cost of infrastructure. 89 India China Thailand Ta iwan US 188 210 1301 2766 0 1000 2000 3000 Exhibit IX 18 : Labour cost (US$ per month ) Labour cost (US$ per month) 18. CEIC, Morgan Stanley Research and Investment commission of India, 2008 10 Counterfeits and Pass-offs 3. Emergence of Private Labels 4. Regulatory Constraints Price of Inputs 6. Tax Structure 1. Complicated Tax Structure i. In India, problems are exacerbated by the complicated tax structure. There is a VAT which is to be levied at state level, there are other state taxes such as octroi and entry taxes and then centre levies excise duties and service tax. As a result, no product cost is exactly the same from one state to the next. High Indirect Tax ii. Indirect Tax levels are quite high, especially in light of the fact that the sector provides goods meant for daily consumption. China, for instance, levies a tax of 10% 19.