Modi is Taking Crucial Decisions for Economy

Modi is Taking Crucial Decisions for Economy

   October 17, 2014       prabhakardalvi

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{{ The Guest Post Blogger organization was not involved in the creation of this content. - Dalvi Prabhakar B, Founder & Digital Manager (SEO,SEM,SMO) }}(M.K. Venu is Executive Editor of Amar Ujala publications group)

Domestic and global investors looking at India with renewed interest had, of late, begun asking this one leading question - when will Narendra Modi return to proper economic management and start taking critical decisions relating to the economy? The Prime Minister has partially answered them with finance minister Arun Jaitley  appointing a new Secretary to head the Department of Economic Affairs (DEA) and finally picking a Chief Economic Advisor known for his strong reforms credentials. The NDA government had oddly been without a Chief Economic Advisor after the post fell vacant last year.

Rajiv Mehrishi, Chief Secretary in Rajasthan, will soon take over as Secretary, DEA and US-based economist Arvind Subramanian will take charge as Chief Economic Advisor. As a matter of protocol, the CEA works very closely with Secretary, Economic Affairs on all macro policy matters. So Arvind Subramanian will work with Rajiv Mehrishi on a day-to-day basis.

Mehrishi also has formidable reforms credentials going by the big policy initiatives he took in Rajasthan under Chief Minister Vasundhara Raje. In fact, Mehrishi is credited for much of the economic reforms initiative undertaken by the chief minister, both in her current term as well as her previous stint in office. In many ways, she found Mehrishi indispensable as her policy advisor. So after taking charge as Chief Minister last year, Vasundhara promptly asked Mehrishi, who was then Secretary, Department of Fertilizer at the Centre, to join her government. He could not say no.

Within months of moving to Rajasthan, Mehrishi made waves with his Labour Law reforms. He also rewrote the newly-amended land acquisition law which many argue is procedurally difficult to implement. Since land is a state subject, the Vasundhara Raje government is rewriting the law without diluting benefits for farmers.

Since States also have concurrent jurisdiction over labour laws, Mehrishi made creative changes in various provisions without losing the essence of the legislation. For instance, the Industrial Disputes Act says a formal trade union can be formed with a minimum 15% of the work force. This resulted in a messy situation of multiple trade unions getting formed with 15% of the total workers. This minimum limit was raised to 30% so that the Labour Union is of a reasonable size and scale. Of course it could still result in two unions getting formed, but it will not be as messy as before.

Mehrishi also tweaked the Factories Act which currently says any establishment with 100 workers or above will mandatorily require government permission before shutting down. Rajasthan has now raised the minimum number of workers' limit to 300. So only factories with 300 workers and above need to take permission from the government before shutting down. These amendments are currently awaiting the President's assent. The spirit of these amendments is now being followed by the Centre which announced changes in labour laws yesterday. Vasundhara Raje will not be very happy to lose Rajiv Mehrishi. But she can't do much about it, as it is her own party which rules at the Centre.

Arvind Subramanian, the former Chief Economist of ADB, is also an interesting choice. Subramanian is a firm believer in the rapid rise of Asia, led by China, in the coming years. While most US-based economists tend to argue that the United States will sooner or later bounce back to its position of economic primacy, Arvind argues that the world may be at an inflection point where China's economy and currency will start to dominate much faster than we all imagine. In his much talked about book, "Eclipse: Living in the shadow of China's dominance", it is argued that just as the United States' economy and currency overtook that of England early 20th century, China might do the same to the US in the 21st century. In fact, Modi may have chosen him partially to understand how China and other emerging Asian economies can convert their economic dominance to a strategic advantage.

Arvind Subramanian also believes in pragmatic reforms. For instance, he has argued India is right to assert its position in WTO in relation to the agriculture sector but says it was a tactical mistake not to sign the Trade Facilitation Agreement. Subramanian believes there is enough scope to transfer cash to our farmers without falling foul of the WTO provisions.

Subramanian is also a strong proponent of shutting down public banks rather than recapitalising them, if they cannot stand on their own feet. He has said the good assets of bad banks must be transferred to other well-run private banks - this, he holds, is preferable to injecting loads of  additional capital in government-owned banks which cannot sustain themselves. He is a strong critic of Indira Gandhi and her policy of bank nationalisation. The Sangh Parivar, however, may have different views in this regard. The RSS always admired Indira Gandhi for many things she stood for. Subramanian may have to wade through these complexities which oversimplified western analyses sometimes do not grasp adequately.

Disclaimer: The opinions expressed within this article are the personal opinions of the author. NDTV is not responsible for the accuracy, completeness, suitability, or validity of any information on this article. All information is provided on an as-is basis. The information, facts or opinions appearing in the article do not reflect the views of NDTV and NDTV does not assume any responsibility or liability for the same.

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Using Distributors with Time and Stratergy - Prabhakar

Using Distributors with Time and Stratergy - Prabhakar

   July 01, 2014       prabhakardalvi

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Over the last few years we have carried out a number of surveys to examine the effectiveness of distributors in industrial marketing. There is no doubt that there are many unhappy marriages between manufacturers and their distributors and that the commonest causes of friction are misunderstandings as to when and where this channel should be used and how to get the best out of it.

Distributors, merchants, dealers or factors are characterized by two features. First, unlike agents who take a commission, they buy stock for re-sale. Second, they are usually but not always appointed by the manufacturer to cover a specific geographical area or sector of the market. Typically the distributor is a small company, perhaps with only one or two branches. It may be privately owned and managed by the proprietor, an ex-salesman who has opted for a life of greater independence.

The ideal environment for a distributor is a market with many small customers and where the level of sales service required is high. The spread of customers is difficult and expensive to reach with a directly employed sales force who are more suited to dealing with a limited number of large buyers. Distributors generally aim to win business on sales rather than technical service. Their stock of products means customers can have instant delivery.

A difficult technical problem may require referring to the manufacturer. Simple repair work may be handled by the distributor. Distributors are, therefore, an efficient means of selling car parts to garages, tools to industry or components to electronic companies. They are inappropriate for selling complex industrial plant, computers or castings. If distributors are not performing well, the manufacturer should ask if their job could be better undertaken by a sales force or agency. Distributors will never prove successful if they are used as a cheap alternative to a sales force - they either fit the conditions or they do not.

Even in the correct marketing environment the use of distributors is not always successful. Many distributors make the mistake of expanding their product range to an unmanageable level, with the result that selling effort is dissipated. This gives rise to the commonly voiced complaint of manufacturers that distributors are order takers and not order getters. The product range they carry may be deep as well as wide with a variety of items from high to low value. In a recent interview, the marketing manager of an air tool company complained bitterly that his distributors were more interested in selling expensive compressors than tools which cost on average only a couple of hundred pounds each. Distributors are not necessarily the wrong way to sell air tools but certainly this company had the wrong distributors.

After Christmas sale (Photo credit: kevin dooley)

Poor distributors can be recognised by their low level of stocks. Since an important role of the distributor network is to provide immediate access to goods, poor stocks will result in poor service. The same person who carries inadequate stocks is likely to be the one to complain that the manufacturer is letting him down with deliveries which are too slow.

Staff employed by distributors may sometimes leave a great deal to be desired. Counter staff may lack selling experience. A recent survey of packaging distributors asked the proprietors whether they would be prepared to let the manufacturer train their sales staff in one of the product lines. Only a minority were interested in the offer, even though it would have cost them nothing except the opportunity cost of their employees' time.

Distributors do not shrink from criticising manufacturers. They point to the all too frequent practice whereby the manufacturer takes the rich pickings for his own sales force leaving the distributor with the crumbs. Worse, the distributor may be encouraged to build up sizeable accounts only to find this business has been short circuited when it suits the convenience of the manufacturer.

Manufacturers are also accused of being interested only in selling into distributors and providing little help in selling out. Distributors rely on a strong demand puff for their products. Distributors want customers who ask for a product by name and this demands strong branding. Manufacturers should not assume that distributors are interested in switching customers to another brand at the point of sale. Small distributors may lack the time and trained management for planned marketing. Many are glorified shops relying heavily on counter sales. A token entry in Yellow Pages may well be the sum of their marketing effort. ----  The When And How of Using Distributors

It usually falls upon the manufacturer to provide marketing support. This can range from the provision of display material for the showroom through to media advertising or mail shots aimed at drawing a response and directing it to the distributor. A number of distributors in the packaging survey said that not only did they receive little or no support from their principals but they even had to buy their own sales literature!

Territories are a frequent bone of contention. This may be due to the loose definition of boundaries placing one distributor in conflict with another or it could be the result of the carving up of one area into smaller units.

After studying a number of different markets in which distributors are used we have arrived at the conclusion that wherever this sales channel fails it is most likely to be due to shortfalls on the part of the principal. Distributors are, after all, selected by the manufacturer rather than self-appointed. They need a helping hand and may not get it. They can hardly be blamed for placing their own limited time and resources behind products which sell easily and make money rather than those which are hard to sell and provide little profit.

There is no single recipe for the successful appointment and management of distributors but here are some ingredients which are worth considering.

Seek specialists. Distributors who specialize in a narrow field tend to be the most successful. They understand the needs of their customers better and know where in their territory the potential lies.

Treat distributors as part of your own company. In a recent exercise carried out for a manufacturer of solenoid valves it was easy to see that the reason it achieved the lion's share of the market was that it treated its distributors as if they were company employees. Regular conferences bound them together and provided an opportunity for sorting out problems.

Just as a manufacturer would not dream of sending a new salesman on the road without product training, so too should distributors' staff be trained. If the distributors find it inconvenient for their people to visit the principal's factory for this purpose then a scheme should be devised for on the job training.

Set strict codes for merchandising. Contrary to the belief of some manufacturers, distributors are quite prepared to conform to a tightly controlled formula for merchandising goods - as long as they know it works. Snap-on Tools, for example, have hundreds of distributors selling tools to garage mechanics from vans. Snap-on insist that every van is laid out in the same way and that each distributor wears a uniform. And the distributors are happy to comply because they know that this approach sells more tools.

Provide assistance with Marketing. Marketers take it for granted that everyone knows which directories to look in for a list of prospects, how to organise a direct mail campaign and where to place ads. Distributors are likely to be managed by good salesmen and poor marketers. Any assistance that the principal can provide in marketing the products will improve the relationship and help both parties sell more products.

Make the business worthwhile. If a manufacturer decides to use distributors rather than another marketing channel, he should not begrudge the distributor his margin. This margin saves the manufacturer from having to invest in cars, salesmen, depots and expensively high stock levels. The margin he provides should be sufficient to cover the distributor's costs and provide a profit incentive.

Keep the distributor interested. Distributors are under constant pressure to take on a new range or a new supplier. Any manufacturer who becomes complacent about its distributor network is putting it at risk. If it is good there will be many who want to steal it. Distributor incentives and prizes, newsletters and constant support in the form of visits are essential to keep the distributor interested and stop it being tempted away.

{{ The Guest Post Blogger organization was not involved in the creation of this content. - Dalvi Prabhakar B., Founder & Digital Manager (SEO,SEM,SMO) }}

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What is derivative trading - Simplus Information Services

What is derivative trading - Simplus Information Services

   June 11, 2014       prabhakardalvi

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Stock market and speculation are almost synonymous. Many believe that stock market trading is speculation. Some even call it a casino. Stock market prices today are a reflection of tomorrow’s prospects. They rise and fall in tandem with profits of businesses. Indians love to speculate.

The market was introduced to modern ‘derivatives’ trading recently. Stock futures and options or derivatives are used extensively in India for speculation.

Here are five things you need to know about derivatives trading:

1) What are they: A derivative is a security that derives value from an underlying asset. An underlying asset could be an equity share, debt instrument, a currency or a commodity. Derivatives deal with an agreement to trade at a future date or at a certain price.

2) Types of derivatives: There are two types of derivative instruments. Futures and options. Futures allow you to bet on future trends in prices of an underlying instrument at a fraction of the cost of that instrument. Options give you an option to buy or sell the stock, commodity or a debt instrument at a target price. If the price of a stock is Rs 100, you expect it to go up to Rs 110 in a month’s time, then you buy a contract at Rs 100 today and agree to sell it at Rs 110 at the end of the month.

3) Why derivatives: There are many advantages of derivatives trading. Most use it to hedge their losses or safeguarding their investments from fluctuations in the market. So if you have bought Reliance Industries shares and suddenly due to an external event not related to Reliance Industries its share price is likely to fall, you could use derivatives to sell Reliance stock futures and hedge your loss in the equity market. Importers and exporters often hedge their currency risk.

So when they import goods, they pay in foreign exchange. If the rupee value falls against the US dollar, imported goods get expensive. Hedging in currency derivatives helps in cutting these losses. Traders also use the secondary market for arbitrage – buy cheap in one market and sell at a higher price in another or vice versa. There is always a price difference in markets.

4) How do I start: Derivative instruments are available with registered trading members of stock exchanges like brokerage firms. You will have to fill the Know Your Client (KYC) form if you are a first time investor, along with other forms for purchasing the contract you wish. You are allotted a client identification number, after which you must deposit cash to initiate trade.

5) How it works: Trading is a simple ‘buy and sell’ process. 

The only difference is that you will not have to pay the entire sum, but just a margin. For example, if you are buying 100 contracts of Nifty 50 October futures with a value of 5000, and if the margin is 5%, then you don’t have to pay Rs 5,00,000, but just Rs 25,000. All such transactions are settled at the end of every trading day. Investors are not required to hold any stock of the underlying asset for trading in the derivatives market.

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Women do more research for be a Better Investor - why

Women do more research for be a Better Investor - why

   May 28, 2014       prabhakardalvi

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According to The Economist, a recent study has apparently found that hedge funds managed by women performed better than those managed by men. The women, it turned out, delivered a gain of 9.8% in 2013, against an average of 6.1% for both sexes.

       Such claims aren’t new. And in the hedge fund market, it seems that the same result has been seen in earlier years. But is there anything in it?

      LouAnn Lofton — author of Warren Buffett Invests Like a Girl: And Why You Should, Too — clearly thinks so. According to Lofton — a contributor to the American arm of The Motley Fool — women spend more time on research, trade less and take fewer risks.

Over-trading saps wealth

But do such traits make a difference? Here, we’re on firmer ground.

American researchers Brad Barber and Terry Odean analysed the trading records of 10,000 brokerage accounts of individual investors spanning a seven‑year period.

And their findings — pithily entitled Trading is Hazardous to Your Wealth — make fascinating reading. Those investors who traded the most, it transpired, earned an annual return of 11.4%, in a period in which the market returned 17.9%. A shocking degree of underperformance, in short.

“It is difficult to reconcile the volume of trading observed in equity markets with the trading needs of rational investors,” sardonically observe Barber and Odean. “Rational (Xetra: RAA.DE - news) investors make periodic contributions and withdrawals from their investment portfolios, rebalance their portfolios, and trade to minimize their taxes.”

Irrational investors, on the other hand, pursue the latest investment fads, splurge on a share tip picked up at the golf club, and speculatively buy and sell in the hope of making a quick profit.

Buy high, sell low

And even here, in buying and selling to make a quick gain, they get it wrong.

Just ask Nobel prizewinner Daniel Kahneman, who with his colleague Amos Tversky laid the bedrock on which a lot of behavioural economics is based.

In his recent best-seller Thinking, Fast and Slow, Kahneman has this to say of Barber and Odean’s analysis of how the shares that investors sold performed versus the shares that they subsequently bought with the proceeds.

“On average, the shares that individual traders sold did better than those they bought, by a very substantial margin: 3.2 percentage points per year, above and beyond the significant costs of executing the trades… It is clear that for the large majority of individual investors, taking a shower and doing nothing would have been a better policy than implementing the ideas that came to their minds.”

Misplaced confidence

So all those over-trading, speculative types tend to get inferior returns. But are those over-trading, speculative types necessarily male?

Apparently so, suggest researchers. Because such behaviour is associated with overconfidence — and misplaced confidence — and these are male traits.

Women, goes the argument, are less confident, and so not only do more research to begin with, but aren’t subsequently tempted to chop and change.

Which helpfully has a ‘double whammy’ positive impact, of course: not only are they backing well-researched winners, they aren’t incurring the wealth-sapping costs of trading commissions and stamp duty.

Whew! Put away the dress

It all sounds plausible to me. The trouble is, as a man, I’m not attracted to the prospect of a gender-change operation. And I suspect I’m not alone.

Thankfully, LouAnn Lofton doesn’t say that we have to be girls — just invest like girls.

So as a start, if you'd like to replace share tips picked up in the Sunday newspapers and on the golf course with more solidly researched recommendations, then you could do worse than read the Motley Fool's very latest free wealth report -- which, as I write these words, has been out for less than 24 hours.

I think you'll be shocked at how poorly some of 2014's most popular investor picks have performed -- and intrigued to read about the alternatives that the Fool's top analysts have uncovered. - published on finance.yahoo Malcolm Wheatley

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How to Build an Email List for B2B and B2C

How to Build an Email List for B2B and B2C

   May 20, 2014       prabhakardalvi

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Step 1:   Specific to Business-to-Business (B2B)

- Define your ideal prospects – who are likely to buy your product/services

- Set criteria and filters – company criteria (firmographic – size, LOB, Location, Markets, product/service, financials, company purchase pattern, etc.) and contact criteria (job role, designation, location, authority, etc.)

- Define the data fields you want including Email id and first name (typically emails are addressed by first name)

- Use your in-house team or outsource to a data vendor the task of sourcing new email ids; as well as appending your existing data

- Verify Email id through verifier tool (many data vendors provide verification technology). A few vendors provide verification of email data through tele-calling

- Once the list is built – tag and segment for your various marketing campaigns

- Certain country regulations require ‘opt-in’ for B2B commercial email too. For such countries one needs to deploy a data provider having experience in generating consent based data. 

Step 2 : Specific to Business-to-Consumer (B2C)

- Building individual consumer email list is more difficult as well as governed by stringent regulations

- Best practice is to build ‘Opt-in’ Email list through various channels like ‘point of sales consent’ (requesting permission during an online or offline purchase), Online initiatives like Sweepstakes, Social media activities like surveys, contents, Polls, etc. The basic idea is to incentivize/ reward consumers/prospective buyers for sharing their information as well as inputs.

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Univision taps T-Mobile to create Hispanic wireless service - CNET

Univision taps T-Mobile to create Hispanic wireless service - CNET

   May 15, 2014       prabhakardalvi

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Spanish-language entertainment giant Univision is getting into the wireless business -- courtesy of T-Mobile. Univision and T-Mobile on Thursday announced Univision Mobile, a wireless service targeting the Hispanic market with specific plans and Univision content. Univision is hoping to extend its entertainment brand into the mobile world, while the move could potentially net T-Mobile a larger share of the market for Hispanic consumers even as the competition for new customers heats up. Financial terms weren't disclosed. The service launches May 19.

Entertainment brands have attempted to get into the wireless business before -- ESPN and Disney famously tried to become wireless service providers before they both crashed and burned. But those brands struck a reseller, or mobile virtual network operator, agreement in which they would handle all of the work related to being a wireless provider.

Univision and T-Mobile are instead partnering together, which would allow Univision to focus on the promotion and brand while T-Mobile handles customer support, billing, and other logistical needs. Customers would get Univision ringtones and wallpapers, a sneak peak at Univision shows, as well as a Univision Mobile portal for access to news, sports, and entertainment, and access to its apps.

Univision's "exclusive" content will include quick access to Rodner Figueroa's "fashionómetro," showcasing the best and worst of Hispanic celebrities on the red carpet by one of Univision's fashion experts; or even deliver personalized horoscopes by Univision's clairvoyant Victor Florencio, also known as El niño prodigio.

Univision Mobile's plans aren't just a clone of T-Mobile's offerings. They specifically target Hispanic customers with families overseas, and all include 100 minutes to call a mobile or landline number from the US to Mexico, Dominican Republic, Colombia, Chile, Costa Rica, Panama, Peru, and Venezuela. As with the typical T-Mobile plan, the Univision Mobile plans all include unlimited text messages from the US to select Latin American countries and more than 200 countries around the world.

There is also the option to pay an additional $10 a month for unlimited calls to landlines and 1,000 mobile-to-mobile minutes to Mexico. The plans start at $30 a month for just voice calls and text messages. A plan that includes 2.5 gigabytes of 3G data costs $45 a month, while one that includes 2.5GB of 4G data costs $55 a month.

Univision Mobile will launch on May 19 in Walmart stores and dealer locations in the US and Puerto Rico.

T-Mobile isn't the only carrier that has attempted to cater to the Hispanic market. Verizon Wireless partnered with Jennifer Lopez to open Viva Mobil, a Hispanic-focused retail store that sold Verizon phones and services. Verizon had previously called the market a key strategic growth platform. But T-Mobile believes it can do better with Univision.

"We've looked at all the offerings in the marketplace and we think others are getting it wrong," said Mike Sievert, chief marketing officer of T-Mobile.

Univision Mobile will launch in 1,000 Walmart stores and 3,000 dealer stores, with distribution expected to double by the end of June. Sievert said there might be an option to have Univision Mobile show up in T-Mobile's stores too.

"(Univision Mobile) will be on every platform available to us," said Rick Alessandri, executive vice president of Univision.

The Hispanic market represents the fastest growing demographic in the US, and tends to skew younger and more tech-savvy, Alessandri said.

"Obviously, building a product with them first in mind is what this has been about," he said.

Sievert said T-Mobile has a higher mix of Hispanic customers than the other national carriers.

While any T-Mobile phone would work on the service, the Univision Mobile packages will come with more affordable phones such as the Samsung Galaxy Light, Galaxy S III, and, as well the Alcatel Island and Evolve.

Related articles

• T-Mobile targets budget-conscious with $40 'Simple Starter' plan

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US economic outlook — May D&B Health Tracker reveals business services growth

US economic outlook — May D&B Health Tracker reveals business services growth

   May 15, 2014       prabhakardalvi

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Strong gains in the business services and manufacturing segments are driving US job growth, according to the D&B May US Economic Health Tracker.

The tracker report highlighted some industries performing better than expected, as well as those underperforming expectations. The strongest job growth gains were in the business services and manufacturing segments, with retail, manufacturing, and construction also posting growth. 

Business services firms provide services to businesses such as office administration, personnel placement, security services, cleaning and waste disposal. According to First Research, major business service companies include Automatic Data Processing, Carlson Wagonlit, Manpower, and Waste Management (all based in the US), along with Adecco (Switzerland), G4S and TUI Travel (UK), and Randstad (the Netherlands). 

According to First Research, the staffing industry is the largest segment of the business services sector and will continue healthy growth in 2014 as companies take advantage of the flexiblity of using temporary workers.

The real estate sector, however, still lagged, as some regions continue a slow recovery from the housing crisis.

Ballew said he was pleased to see employment gains in some cyclical areas of the economy and in some areas that lagged in the first quarter, namely retail. US-based businesses added jobs at a stronger pace in April compared to March, with 208,000 nonfarm jobs added to the US payroll.

The Small Business Heath Index stabilized after several months of deterioration, according to the tracker. Critical weather-sensitive verticals such as construction and real estate were showing initial recovery signs at the end of 2013 but have lagged in early 2014. The construction vertical showed a slight bounce back in April 2014, but “nothing to write home about,” Ballew said.

Regions performing well include Miami, Atlanta, and Nashville, while lagging areas include Chicago, Phoenix, and Salt Lake City. “Those laggards remain laggards,” Ballew said.

Overall US business health continued to improve in April, signaling a lower risk of overall business failure. Ballew said he was pleased by the “pervasive” improvement and says the bottom line is that the private sector is “extremely healthy.” Business health in the US strengthened by 8.6 percent year over year in April 2014, the highest recorded level since December 2010.

The D&B US Economic Health Tracker offers analysis of the following three macro indicators: the D&B Small Business Health Index, D&B Jobs Health Indicator, and D&B US Business Heath Indicator. Read more in the report infographic and follow the reports on Twitter, using the #DnBEconBrief hashtag.

Tags:business health, business services, Construction, D&B economic tracker, job tracking, manufacturing, real estate, retail

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Gifts Handicrafts and Beauty Care with Home And Office Products

Gifts Handicrafts and Beauty Care with Home And Office Products

   May 07, 2014       prabhakardalvi

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Categories  : Fashion, Beauty, Cosmetic Items , Gift And Novelties , Handicrafts , Home Appliances , Stationery , Sport, Play And Leisure , Toys And Games , Advertising And Promotion , Office Automation Products , Festive, Holiday, Party Supplies , Jeweler Products

Subcategories for : Sports, Play, Leisure

• Abdominal Training Equipment 
• Aerobic Exercise Equipment 
• Archery Crossbow Equipment Accessories
• Arms Ammunition Accessories
• Ball Games
• Baseball Bats And Balls
• Basket Balls
• Basketball Hoops 
• Beach Balls
• Beach Wear
• Bicycles And Cycling Supplies
• Billiard Snooker Tables And Equipment
• Body Building Equipments
• Body Strength Training Equipment 
• Boxingtraining Equipment 
• Camping Beds
• Camping Field Gear
• Camping Track And Field
• Cardiovascular Gymnastic Training Equipment
• Cricket Equipment Supplies
• Cross Trainers Ellipticals
• Darts Dartboards
• Diving Gear 
• Exercise Bikes
• Fishing Lures Baits
• Fishing Poles And Rods 
• Fishing Reels
• Fit Balls And Swiss Balls 
• Golf Apparel
• Golf Bags
• Golf Balls And Tees
• Golf Club Head Covers
• Golf Gadgets Training Accessories
• Gymnastic Fitness Mats
• Hammocks
• Hiking Backpacks And Rucksacks
• Ice Field Hockey Gear 
• Inflatable Boats Accessories
• Inflatable Floaters 
• Jump Ropes
• Leisure Goods
• Motorcycle Auto Racers Wear
• Musical Instrument
• Oil Kerosene Gas Lamps
• Outdoor Adventure And Leisure Supplies
• Outdoor Beach Sleeping Mats
• Outdoor Camping Tents
• Outdoor Survival Kits
• Pedometers Pace Meters
• Picnicware Supplies
• Play Games
• Push-pull Or Motorized Golf Caddie Carts 
• Racquets 
• Rock Climbing Gear And Equipment
• Roller Skates Or Skateboards And Accessories
• Rollerblades Or Roller Shoes 
• Rowing Machines
• Rugby Balls , American Footballs
• Sailing , Windsurfing Equipment
• Skiwear
• Sleeping Bags
• Soccer Balls
• Sports Caps
• Sports Flasks 
• Sports Gloves
• Sports Jerseys And Track Tops
• Sports Safety Or Protection Body Padding And Guards
• Sports Safety Or Protection Goggles And Masks, Helmets And Hats
• Sports Shorts And Trousers
• Sports Socks
• Sports Visors
• Sportswear And Accessories
• Swimwear
• Table Tennis Tables And Accessories
• Telescopes
• Tennis Balls 
• Tent Setting Supplies
• Training And Jogging Suits
• Trampolines
• Travel Mugs
• Treadmills 
• Volleyballs
• Water Or Aquatic Sports Accessories
• Water Or Aquatic Sports Goggles And Masks
• Water Sport
• Wetsuits 
• Winter Sports Accessories And Equipment

These are our Futures  Sports, Play, Leisure for all Worlds.

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A Complete guide on Income Tax for Indian bloggers & Freelancers - denharsh

A Complete guide on Income Tax for Indian bloggers & Freelancers - denharsh

   May 06, 2013       Unknown

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A new profession that has emerged in the past few years is blogging wherein people write articles and blogs. A major source of Income of such bloggers engaged in the profession of blogging is through

• Advertisements (Google Adsense, Direct Ad Sales etc.)
• Affiliate Sales
• Services like Blog Consultancy, Blog Designing, SEO Services, Content Services etc
• Any other Source like Freelance income etc

The best thing about earning from blogging is, it doesn’t require any age limit, and you can earn it all of your own. Many budding bloggers, who are earning handsome from blogging, are unsure about paying taxes on income from blogging in India. Here in this article I will try to give an overview of the manner in which tax is payable on Income from blogging.

Taxes payable on Income earned from Blogging in India

Income Tax and Service Tax are liable to be paid on income earned from blogging in India. In this article, I would mainly be focussing on the manner in which income tax is levied on blogging and in my next article I’ll try to explain service tax on blogging. The manner of computation of Income Tax has been explained in detail below in this Article.

(Please Note: If a person is earning income from salaries/ rent / interest from bank/ capital gains computation of Tax payable on his Income won’t be done in the following manner. This article has been specifically directed towards explaining the manner of computation of income earned from any blogging and other online sources which form a part of income from any business or profession)

Benefits of Filing Income Tax Return

The most important benefit of paying taxes and filing your income tax return is that only the income disclosed by you in your income tax return is considered your true income. If you are required to show your income at any place in future, only the amount disclosed in your income tax return would be considered as a valid proof of your income.

Moreover, even if you apply for any Loan from a Bank, you are mandatorily required to show them your income tax return and only the income disclosed in this income tax return would be considered as a valid source of income.

Secondly, there are many expenses which are done by the Govt. like construction of roads, airports etc. The Govt incurs these expenses from the taxes collected. It is a legal right of the govt to collect Income Tax and in case you don’t pay your income tax they may issue you a scrutiny notice and demand you to pay your Income Tax along with Interest and huge penalties.

Therefore, it is highly advisable for all income earning individuals to file their income tax returns before the due date with the Govt.

Computation of Income Tax in India

Any person earning income from any source is liable to pay income tax as per the tax rates prescribed by the govt. While computing the income on which tax is to be paid, the total of all Incomes earned by a Blogger are to be taken into account. You are requested to note that Income Tax is not payable on the Total Revenue earned but is payable on the Total Income earned. Total Revenue is the Gross Amount received and Total Income is the amount earned after Depreciation and Payment of Expenses incurred for the purpose of earning the Revenue.

The difference between Total Revenue and Total Income has been explained with the help of an example below:-

• Total Revenue/ Total Turnover: Rs. 13,00,000
• (Less) Total Expenses Incurred for the purpose of earning Revenue: Rs. 2,00,000
• (Less) Total Depreciation on all Assets: Rs. 1,50,000
• (=) Gross Total Income: Rs. 9,50,000
• (Less) Deductions allowed for specified Investments: Rs. 1,00,000
• (=) Total Taxable Income: Rs. 8,50,000

In the above example, income tax would be levied as per the income tax slabs on the total taxable income (i.e. Rs. 8,50,000) and not on total revenue (i.e. Rs. 13,00,000). The Income Tax Slab Rates keep changing are announced by the Govt in every budget.

Expenses allowed to be deducted while computing Income Tax

Any amount which has been paid for the purpose of earning revenue is allowed to be deducted as an expense. A few examples of the expenses allowed are as follows:-

• Domain Hosting Expense, Domain Purchase Expense, Blog Designing Expense etc
• Rent Expense
• Electricity Expense/ Telephone Expense/ Internet Expense/ Water Expense
• Salary to Employees
• Payment to Freelance Consultants
• Petrol/ Diesel Expenses
• Any other expense incurred for the purpose of earning Revenue

Here, you are requested to note that only those expenses incurred for the purpose of earning Revenue are allowed to be deducted as an expense. For e.g.: If you invite a client for a meeting in a 5 star hotel, the payment made to the 5 star hotel is allowed to be deducted as an expense as this meeting would help you in increasing your business and would help you earn extra income. It is irrelevant whether you get extra business from this meeting or not, the point to be taken into account is that this expense was incurred for the purpose of gaining extra business.

But, if you go to a 5 Star Hotel for your personal purpose and not for business purpose, it would not be allowed to be deducted as an expense.

For the purpose of claiming these expenses, you are also required to provide proof of such expenses. Therefore, you are required to maintain a file showing bills of all the expenses incurred.

Depreciation on Assets

For the purpose of earning revenue, bloggers also purchase some assets. So for the purpose of earning revenue, if you’ve purchased any assets like mobile/ laptop/ car/ office furniture etc you are also allowed to reduce this form of expense incurred for the computation of total income.

However, the benefit arising from the expense incurred on the above mentioned assets would be arising for more than 1 year as these assets usually have a life span of more than 1 year. As the benefit would be arising for more than 1 year, the expense incurred shall also be attributed to more than 1 year.

In such cases where the expense has been incurred for purchase of any Asset, you are not allowed to claim the whole expense at one go. The total expenditure incurred for purchasing the asset is allocated over the life of the asset and you are allowed to claim this expenditure proportionately over the life of the asset. This can be explained with the help of an example below:-

For e.g.: If you purchase a laptop for Rs. 30,000 and the expected life of the laptop is 3 years, you cannot claim the whole Rs. 30,000 as an expense in one year as the life of the Asset is more than 1 year and this laptop would be giving you benefits for more than 1 year. In this case you would only be allowed to claim Rs. 10,000 (i.e. Rs. 30,000/3)

This method of proportionately claiming an expense based on the life of the Asset is called depreciation of asset. You are required to show the proof of expenditures made on purchase of Assets by showing requisite bills for the same.

Please Note: The Individual cannot himself decide the life of an asset and the Govt has already pre-defined the life of all the Assets.

Deductions allowed for Specified Investments

To promote the habit of savings amongst taxpayers and to channelize the resources in the right direction, the Govt also allows for Deduction for amount invested in specified investments. If a taxpayer makes an Investment in any of the Investment Options as specified by the Govt., he shall be allowed to claim deduction for the same. Income Tax would be levied on the amount so arrived after reducing the Deductions from the Gross Total Income.

Deductions for Investments made in specified Instruments are allowed and the most popular forms of Investment for claiming Deductions are Mutual Funds, PPF Accounts, Life Insurance Premium, Health Insurance Premium etc. The whole lists of Investments which are allowed to be claimed as a Deduction are given here.

Exemption from Payment of Income Tax

If the Total Taxable Income after deducting all expenses, depreciation & deductions allowed is less than the minimum income which is chargeable to tax, the individual is not mandatorily required to file his income tax return.

As per the current Income Tax Slabs, no tax is payable if the Total Taxable Income of an Individual is less than Rs. 2,00,000. Therefore after deducting everything stated above, if the Total Taxable Income is less than Rs. 2,00,000 he is not mandatorily required to file his Income Tax Return and it is optional for him to file his Income Tax Return.

In cases wherein it is optional for the taxpayer to file his income tax return and he still files his Income Tax Return, in such cases he will file an Income Tax Return stating that the Tax payable by him is Nil.

PAN Card for filing Income Tax Return and Payment of Taxes

In India, there are many people by the same name. Let’s take the case of Harsh Agrawal. There are many people in India by the name of Harsh Agrawal. So if Harsh Agrawal goes and pays his Income Tax, how would the govt come to know which Harsh Agrawal has paid the tax?

So as to avoid this confusion, the govt issues a PAN Card to every taxpayer. PAN Card is a unique no allotted to every taxpayer. Only 1 PAN Card No is issued per person and for each Harsh Agrawal in this country, the PAN Card No would be different and it is through the PAN Card No that the govt would come to know which Harsh Agarwal has paid his Income Tax.

Every taxpayer has to apply for a PAN card no and this application can be made online as well. This is a one-time process and the PAN card no allotted to you would stay the same throughout your lifetime. Applying for pan card is a fairly easy process and application for the same can be made online as well as offline. The Charges for applying for a PAN card are very nominal and are Rs. 96 only.

The request for applying for a PAN Card is required to be made in Form 49A and online request for PAN Card No can be made through the TIN Portal on the NSDL Website. You are requested to note here that without PAN Card No. you cannot pay Income Tax.

As against popular belief, I would here also like to clarify that it’s not necessary for you to be 18 years of age to be applying for a PAN Card. You can apply for a PAN Card even before you are 18 years of age and this income would be counted as your income and not your parents income as you are earning this income out of your own skill.

Due Date for Payment of Income Tax

Every taxpayer is required to make payment of income tax during the year itself in which the income is earned. He is required to make the payment in instalments during the Year if the total tax payable during the year is more than Rs. 10,000.

Such payment of Income Tax during the year is called Advance Tax and due dates have been specified for the payment of advance tax during the year. The Payment of advance tax can be made online by submitting the requisite Challan Form on the NSDL Website.

The Due Dates for Payment of Advance Tax for all taxpayers (except Companies) is as follows:-

Due Date	Amount Payable
On or before 15th Sept	Not less than 30% of the Total Tax Liability
On or before 15th Dec	Not less than 60% of the Total Tax Liability
On or before 15th March	100% of the Total Tax Liability

Filing of Income Tax Return

At the end of the year, every taxpayer is required to file a statement of his taxes. This statement of taxes is called the Income Tax Return and this Statement should indicate:-

1. The revenues earned and the sources from where they are earned
2. The expenditures incurred
3. The depreciation claimed on assets
4. The investments made which have been claimed as a Deduction
5. The Total Taxes paid incl. the Advance Tax paid or the TDS deducted (if any)

• Recommended Read: Procedure for Income Tax e-filing

Delay in payment of income tax and filing of Income Tax Return would enforce levy of Interest and Penalty for the delay. In case a person has by mistake paid excess tax, he can also claim Refund of the excess tax paid.

The above article is only an overview of the computation of income tax on earnings from Blogging and it has been simplified so as to make it easier to understand for non-finance people. You are requested to refer to the Income Tax Act for exact interpretations.

In case of any query, feel free to ask them in the comments section below and I would be happy to help. If you find this guide useful, do share it on Facebook and Google plus.

This is a guest post by Blogger and Chartered accountant Karan Batra from Chartered Club. If you would like to write an original guide for ShoutMeLoud, check our guest submission guidelines. - denharsh

Read More

A Complete guide on Income Tax for Indian bloggers & Freelancers - denharsh

A Complete guide on Income Tax for Indian bloggers & Freelancers - denharsh

   May 06, 2013       Unknown

---

A new profession that has emerged in the past few years is blogging wherein people write articles and blogs. A major source of Income of such bloggers engaged in the profession of blogging is through

• Advertisements (Google Adsense, Direct Ad Sales etc.)
• Affiliate Sales
• Services like Blog Consultancy, Blog Designing, SEO Services, Content Services etc
• Any other Source like Freelance income etc

The best thing about earning from blogging is, it doesn’t require any age limit, and you can earn it all of your own. Many budding bloggers, who are earning handsome from blogging, are unsure about paying taxes on income from blogging in India. Here in this article I will try to give an overview of the manner in which tax is payable on Income from blogging.

Taxes payable on Income earned from Blogging in India

Income Tax and Service Tax are liable to be paid on income earned from blogging in India. In this article, I would mainly be focussing on the manner in which income tax is levied on blogging and in my next article I’ll try to explain service tax on blogging. The manner of computation of Income Tax has been explained in detail below in this Article.

(Please Note: If a person is earning income from salaries/ rent / interest from bank/ capital gains computation of Tax payable on his Income won’t be done in the following manner. This article has been specifically directed towards explaining the manner of computation of income earned from any blogging and other online sources which form a part of income from any business or profession)

Benefits of Filing Income Tax Return

The most important benefit of paying taxes and filing your income tax return is that only the income disclosed by you in your income tax return is considered your true income. If you are required to show your income at any place in future, only the amount disclosed in your income tax return would be considered as a valid proof of your income.

Moreover, even if you apply for any Loan from a Bank, you are mandatorily required to show them your income tax return and only the income disclosed in this income tax return would be considered as a valid source of income.

Secondly, there are many expenses which are done by the Govt. like construction of roads, airports etc. The Govt incurs these expenses from the taxes collected. It is a legal right of the govt to collect Income Tax and in case you don’t pay your income tax they may issue you a scrutiny notice and demand you to pay your Income Tax along with Interest and huge penalties.

Therefore, it is highly advisable for all income earning individuals to file their income tax returns before the due date with the Govt.

Computation of Income Tax in India

Any person earning income from any source is liable to pay income tax as per the tax rates prescribed by the govt. While computing the income on which tax is to be paid, the total of all Incomes earned by a Blogger are to be taken into account. You are requested to note that Income Tax is not payable on the Total Revenue earned but is payable on the Total Income earned. Total Revenue is the Gross Amount received and Total Income is the amount earned after Depreciation and Payment of Expenses incurred for the purpose of earning the Revenue.

The difference between Total Revenue and Total Income has been explained with the help of an example below:-

• Total Revenue/ Total Turnover: Rs. 13,00,000
• (Less) Total Expenses Incurred for the purpose of earning Revenue: Rs. 2,00,000
• (Less) Total Depreciation on all Assets: Rs. 1,50,000
• (=) Gross Total Income: Rs. 9,50,000
• (Less) Deductions allowed for specified Investments: Rs. 1,00,000
• (=) Total Taxable Income: Rs. 8,50,000

In the above example, income tax would be levied as per the income tax slabs on the total taxable income (i.e. Rs. 8,50,000) and not on total revenue (i.e. Rs. 13,00,000). The Income Tax Slab Rates keep changing are announced by the Govt in every budget.

Expenses allowed to be deducted while computing Income Tax

Any amount which has been paid for the purpose of earning revenue is allowed to be deducted as an expense. A few examples of the expenses allowed are as follows:-

• Domain Hosting Expense, Domain Purchase Expense, Blog Designing Expense etc
• Rent Expense
• Electricity Expense/ Telephone Expense/ Internet Expense/ Water Expense
• Salary to Employees
• Payment to Freelance Consultants
• Petrol/ Diesel Expenses
• Any other expense incurred for the purpose of earning Revenue

Here, you are requested to note that only those expenses incurred for the purpose of earning Revenue are allowed to be deducted as an expense. For e.g.: If you invite a client for a meeting in a 5 star hotel, the payment made to the 5 star hotel is allowed to be deducted as an expense as this meeting would help you in increasing your business and would help you earn extra income. It is irrelevant whether you get extra business from this meeting or not, the point to be taken into account is that this expense was incurred for the purpose of gaining extra business.

But, if you go to a 5 Star Hotel for your personal purpose and not for business purpose, it would not be allowed to be deducted as an expense.

For the purpose of claiming these expenses, you are also required to provide proof of such expenses. Therefore, you are required to maintain a file showing bills of all the expenses incurred.

Depreciation on Assets

For the purpose of earning revenue, bloggers also purchase some assets. So for the purpose of earning revenue, if you’ve purchased any assets like mobile/ laptop/ car/ office furniture etc you are also allowed to reduce this form of expense incurred for the computation of total income.

However, the benefit arising from the expense incurred on the above mentioned assets would be arising for more than 1 year as these assets usually have a life span of more than 1 year. As the benefit would be arising for more than 1 year, the expense incurred shall also be attributed to more than 1 year.

In such cases where the expense has been incurred for purchase of any Asset, you are not allowed to claim the whole expense at one go. The total expenditure incurred for purchasing the asset is allocated over the life of the asset and you are allowed to claim this expenditure proportionately over the life of the asset. This can be explained with the help of an example below:-

For e.g.: If you purchase a laptop for Rs. 30,000 and the expected life of the laptop is 3 years, you cannot claim the whole Rs. 30,000 as an expense in one year as the life of the Asset is more than 1 year and this laptop would be giving you benefits for more than 1 year. In this case you would only be allowed to claim Rs. 10,000 (i.e. Rs. 30,000/3)

This method of proportionately claiming an expense based on the life of the Asset is called depreciation of asset. You are required to show the proof of expenditures made on purchase of Assets by showing requisite bills for the same.

Please Note: The Individual cannot himself decide the life of an asset and the Govt has already pre-defined the life of all the Assets.

Deductions allowed for Specified Investments

To promote the habit of savings amongst taxpayers and to channelize the resources in the right direction, the Govt also allows for Deduction for amount invested in specified investments. If a taxpayer makes an Investment in any of the Investment Options as specified by the Govt., he shall be allowed to claim deduction for the same. Income Tax would be levied on the amount so arrived after reducing the Deductions from the Gross Total Income.

Deductions for Investments made in specified Instruments are allowed and the most popular forms of Investment for claiming Deductions are Mutual Funds, PPF Accounts, Life Insurance Premium, Health Insurance Premium etc. The whole lists of Investments which are allowed to be claimed as a Deduction are given here.

Exemption from Payment of Income Tax

If the Total Taxable Income after deducting all expenses, depreciation & deductions allowed is less than the minimum income which is chargeable to tax, the individual is not mandatorily required to file his income tax return.

As per the current Income Tax Slabs, no tax is payable if the Total Taxable Income of an Individual is less than Rs. 2,00,000. Therefore after deducting everything stated above, if the Total Taxable Income is less than Rs. 2,00,000 he is not mandatorily required to file his Income Tax Return and it is optional for him to file his Income Tax Return.

In cases wherein it is optional for the taxpayer to file his income tax return and he still files his Income Tax Return, in such cases he will file an Income Tax Return stating that the Tax payable by him is Nil.

PAN Card for filing Income Tax Return and Payment of Taxes

In India, there are many people by the same name. Let’s take the case of Harsh Agrawal. There are many people in India by the name of Harsh Agrawal. So if Harsh Agrawal goes and pays his Income Tax, how would the govt come to know which Harsh Agrawal has paid the tax?

So as to avoid this confusion, the govt issues a PAN Card to every taxpayer. PAN Card is a unique no allotted to every taxpayer. Only 1 PAN Card No is issued per person and for each Harsh Agrawal in this country, the PAN Card No would be different and it is through the PAN Card No that the govt would come to know which Harsh Agarwal has paid his Income Tax.

Every taxpayer has to apply for a PAN card no and this application can be made online as well. This is a one-time process and the PAN card no allotted to you would stay the same throughout your lifetime. Applying for pan card is a fairly easy process and application for the same can be made online as well as offline. The Charges for applying for a PAN card are very nominal and are Rs. 96 only.

The request for applying for a PAN Card is required to be made in Form 49A and online request for PAN Card No can be made through the TIN Portal on the NSDL Website. You are requested to note here that without PAN Card No. you cannot pay Income Tax.

As against popular belief, I would here also like to clarify that it’s not necessary for you to be 18 years of age to be applying for a PAN Card. You can apply for a PAN Card even before you are 18 years of age and this income would be counted as your income and not your parents income as you are earning this income out of your own skill.

Due Date for Payment of Income Tax

Every taxpayer is required to make payment of income tax during the year itself in which the income is earned. He is required to make the payment in instalments during the Year if the total tax payable during the year is more than Rs. 10,000.

Such payment of Income Tax during the year is called Advance Tax and due dates have been specified for the payment of advance tax during the year. The Payment of advance tax can be made online by submitting the requisite Challan Form on the NSDL Website.

The Due Dates for Payment of Advance Tax for all taxpayers (except Companies) is as follows:-

Due Date	Amount Payable
On or before 15th Sept	Not less than 30% of the Total Tax Liability
On or before 15th Dec	Not less than 60% of the Total Tax Liability
On or before 15th March	100% of the Total Tax Liability

Filing of Income Tax Return

At the end of the year, every taxpayer is required to file a statement of his taxes. This statement of taxes is called the Income Tax Return and this Statement should indicate:-

1. The revenues earned and the sources from where they are earned
2. The expenditures incurred
3. The depreciation claimed on assets
4. The investments made which have been claimed as a Deduction
5. The Total Taxes paid incl. the Advance Tax paid or the TDS deducted (if any)

• Recommended Read: Procedure for Income Tax e-filing

Delay in payment of income tax and filing of Income Tax Return would enforce levy of Interest and Penalty for the delay. In case a person has by mistake paid excess tax, he can also claim Refund of the excess tax paid.

The above article is only an overview of the computation of income tax on earnings from Blogging and it has been simplified so as to make it easier to understand for non-finance people. You are requested to refer to the Income Tax Act for exact interpretations.

In case of any query, feel free to ask them in the comments section below and I would be happy to help. If you find this guide useful, do share it on Facebook and Google plus.

This is a guest post by Blogger and Chartered accountant Karan Batra from Chartered Club. If you would like to write an original guide for ShoutMeLoud, check our guest submission guidelines. - denharsh

Read More