...Main Features of Goods and Services Tax (GST) Our Prime Minister, Datuk Seri Najib Razak announced the introduction of the Goods and Services Tax (GST) in Budget 2014 on 25th October 2013. GST will be effective on April, 2015 and replace the current sales and services tax. GST also known as value-added concept, which is multi-stage tax. GST will be charged on all taxable supplies of goods and services trading in Malaysia by a taxable resident. GST is tax neutral to businesses. GST charged to all intermediaries in the production and distribution chain. Businesses which have registered for GST are allowed to claim input tax credit. GST also is a broad-based tax since all supplies of goods and services will involve GST. Exemption is given to zero-rated supplies and exempt supplies, or those fall within particular special schemes. Besides that, imported services will be subject to GST. Standard-rated Supplies Standard rate supply those goods and services that are charged GST at a fixed rate. GST is collected by the seller and paid back to government. They can recover back the difference between the input and output tax when their input tax is higher than their output tax. Zero-rated Supplies Businesses can claim input tax credit in purchasing these supplies. Customer will be charged at zero rate of GST. Most basic food items such as meats, fish, cooking oil, rice, sugar, salt, vegetables and first 200 units of electricity supply used monthly for domestic consumers...
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...For the article, “why service stinks”, please answer the following questions: Does service really stink? What are the negative effects of reducing service to some customer? Please provide an example. Service really stinks. Nowadays company just emphasizes on potential customer and valued customer. If you fall below on these two categories, companies rather lose you than take time to serve you. Company are smart on checking customer background based on existing information and pass transaction history. Based on the pass history can determine customer value. Companies believe that serve a value customer is easier than looking for a new customer to buying the product. Meanwhile, based on checking customer background, company easy to define who will be potential customer. Potential customer need to emphasize because their willingness on buying new product is higher than a new customer. Potential customer know the company very well, they tend to invest more on trying new product. Serving valued and potential customer is easier than looking for a new customer which needs to start from the beginning. It costs 5 times more to obtain a new customer than retain an existing one. There are some negative effects will reduce service to some customer. Tom Unger called the bank’s toll free number to clarify his mysterious service charges showing up on his bank account, he reach a bored representative who try to brush him off. Tom Unger wrote two letter to make a complaint, a First Union...
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...SUMMARY OF THEORETICAL READINGS CHAPTER 5: Design of Goods and Services BUS 502: Design of Goods and Service Many companies create variety of efficient and competitive ideas about their products and services to meet changing customers demand or target specific customer niches. Companies quickly design and create new innovations or new models to appeal to a variety of market niches. They also use new strategies and production techniques to make their product and service more competitive and satisfying to the customers. Product strategy defines the distance or length of the product line and links product decisions to investment and cash flow, market share and dynamics, product life cycle, and the organizations capabilities. GOODS AND SERVICES SELECTION Most companies concentrate or focus in selection of goods and services or product decision. They focus on creating a competitive advantage thru by differentiation in which companies’ can offer unique and high quality products, lower cost than their competitors, and rapid response to customers demand about executing rapid design and product development. Most of the companies give more attention or focus on product life cycle and strategy. Strategies change as product move through their life cycle. Product strategy involves selecting the best strategy for each product based on its position in the life cycle while product life cycle can be divided into four phases. In the introductory phase, product expenses are mostly high...
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...will evolve as various stakeholders and experts are consulted. 1. 1. Table of Contents Preface ...................................................................................................................................................... 1 Introduction ................................................................................................................................... 2 1.1 1.2 The merits of GST ................................................................................................................................ 2 Urgency .................................................................................................................................................... 2 Desirable features of Goods & Service Tax Network (GSTN)........................................... 3 Stakeholders .......................................................................................................................................... 4 Workflows ............................................................................................................................................... 5 A common GST portal ....................................................................................................................... 6 Basic solution architecture ............................................................................................................. 7 Information...
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...What is GST? Goods and Services Tax is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level. Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain .The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain. What are the benefits of GST? 1. Credit Scheme: GST will be levied on supply of goods and services and the supplier will be allowed credit for the GST paid on purchases. The credit would be seamless except that the credit of CGST paid will not be allowed for set-off against SGST payable and vice versa. This will eliminate the he cascading effect and reduce the price. 2. Subsuming all Taxes: GST should subsume all major indirect taxes levied by the Central Government i.e. central excise, customs and service tax and majority of the taxes levied by the State Government i.e. VAT, luxury tax, entertainment tax, etc. In this regard, tax on petroleum products and alcohol are intended to be kept either outside or tax additionally under GST. 3. Export-oriented industries -internationally more competitive as entire taxes in supply chain would be refunded (zero-rating) 4. Import-substituting industries would also become competitive as prices of Indian ...
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...Goods and Services Tax-What it is! Folks! Goods and Services Taxes or simply put GST is believed to solve many issues when it comes to the taxation policy in India. Before we jump into the technicalities of GST, let me set some pretext for those who have little idea about this topic. Our country, India, is a land of Taxes! Currently, we have numerous taxes like Sales Tax, Value Added Tax, Service Tax, Income Tax, Central Excise, Customs, Countervailing Duty, Special Additional Duty and what not. As a manufacturer, one need to pay these many taxes to government and the total amount that goes into taxes is fairly large. The reason being, the manufactured goods has to go through several stages (intermediate parties) before it finally reaches to the customer. And, the taxes are levied on the goods at each stage. That means same tax is levied on the product more that once before it reaches to the end customer. We call this scenario-Tax on Tax. In 2004, the government came up with an idea of VAT where in this problem of tax on tax was taken care of. In VAT the dealer only adds the tax on the value added on goods by him and does not pay the taxes on the values added on the goods by previous customers. But, as you can figure it out, VAT deals with the taxes only on goods. What about tax on services? Further, the VAT was implemented on the state level. Centre continued to charge the central taxes on the goods and services. To solve this problem, government came up with the idea were...
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...Design of Goods and Services The concept of product life cycle applies to Regal Marine because Regal is constantly under pressure to introduce new products and those products have life cycles of relatively few years. This life cycle is a matter of typically less than five years before a boat is out of style and its life cycle terminated. This is a long life cycle compared to a newspaper or magazine, but if you are the production manager it seems rather short. Every product has a life cycle. Products are born. They live and they die. As the figure on the TUI case page shows, a product's life cycle can be divided into four phases: introduction, growth, maturity, and decline. We also see the four life cycle stages and the relationship of product sales, costs, and profit over. Regal Marine uses the strategy of differentiation. It differentiates its products through constant innovation, unique features, and high quality. Increasing sales at the Orlando, Florida, family-owned firm suggests that the strategy is working. Differentiation goes beyond physical characteristics to encompass everything about the boat that influences the value that the customers derive from it. Operations managers at Regal assist in defining everything about their boats that will influence the potential value to the customer. This may be the convenience of a broad product line, product features, or product service. Product service can manifest itself through convenience (location of boat distributors...
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...Introduction On 10th October 2014, Dato’ Sri Najib Tun Razak, a Prime and Finance Minister, unveiled Budget 2015 addressing key issues on promoting fiscal sustainability and easing the transition to GST for business and consumers, while placing the nation on a firmer growth trajectory towards Vision 2020. Part 1 The three key issues concerning the individuals and sole-proprietor business have been introduced in 2015 budget. The first issue is about individual tax. The first change is that the income tax rate is reduced by 1 to 3% for resident individuals depending on different levels of chargeable income since Year of Assessment (YA) 2015 (KPMG, 2014). This results in that tax payers with family and income of Rm4,000 per month will not have tax liability. Besides, the income tax rate for non-resident individuals is reduced by 1% from 26% to 25% (KPMG, 2014) Chargeable Income(RM) | Current Tax Rate (%) | Proposed Tax Rate (%) | Reduction(%) | 1—5,000 | 0 | 0 | - | 5,000—20,000 | 2 | 1 | 1 | 20,001—35,000 | 6 | 5 | 1 | 35,001—50,000 | 11 | 10 | 1 | 50,001—70,000 | 19 | 16 | 3 | 70,001—100,000 | 24 | 21 | 3 | 100,001—250,000 | 26 | 24 | 2 | 250,001—400,000 | 26 | 24.5 | 1.5 | Exceeding 400,000 | 26 | 25 | 1 | This tax brackets illustrates the chargeable income is raised from RM100,000 to RM400,000 and the rate for chargeable income band exceeding RM100,000 is structured into three bands with reduced rates of 24%, 24.5% and 25%, which results in existing...
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...1.Introduction Billed as India’s biggest indirect tax reform since independence- Goods and Service Tax once introduced has the potential to boost economic growth and according to analyst add around 0.9%-1.5% to our GDP. GST has been implemented by over 150 countries owing to its transparency and revenue increasing capabilities. The idea of GST is almost a decade old and was first proposed by a committee chaired by tax expert Vijay Kelkar in March 2004 after much deliberations and delays P.Chidambaram and Pranab Mukherjee formally introduced the legislation in Lok Sabha in March 2011. Thereafter the Bill has been stuck up in a quagmire of political opportunism and delay. The law, if finally passed by both houses of parliament will come into force from April 2016. 2.Nuanced understanding of GST As opposed to a single comprehensive tax which is a global norm India has decided to adopt the dual GST model where there are two components- central GST (CGST) and a state GST (SGST) hence the Centre and state will legislate and administer the taxes concurrently. GST will subsume various disparate taxes viz. Central excise duty, VAT, Service tax and also other taxes like luxury tax, entry tax thereby reducing the compliance cost and at the same time simplifying the tax structure. GST is primarily a destination based tax and requires that the SGST accrues to the destination state this caused dissent among some predominantly manufacturing states like Maharashtra, Gujarat and Tamil...
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...Chick-fil-A: Great Food, Better Service. Chicken and the Cost to Growers Chick-fil-A is much more than a restaurant that serves good chicken, it is my sanctuary and a part of who I am. Being welcomed with a smile, as soon as I enter the doors, instantly makes my day better. Chick-fil-A prides itself in taking care of the customer. I am on a first name basis with the breakfast, lunch and dinner shift at my local branch. Chick-fil-A, founded by S. Truett Cathy stays true to its core purpose: “To have a positive influence on all who come in contact with Chick-fil-A” (Cathy 124). Throughout my time with Chick-fil-A I always found this to be true. Chick-fil-A’s quality of food, along with their quality of service, is shifting the industry of fast food all together by emphasizing how important living out the vision of your company is. Lessons and Principles S. Truett Cathy grew up watching his mother put a lot of effort into ensuring every one she cooked for would be incredibly satisfied with the meal (Cathy 15). At a young age Truett was in charge of building a newspaper route. He found that the key to his paper route success was “to take care of the customer” (Cathy 24). To do this he had to deliver the papers regardless of the circumstances (Cathy 24). Truett also found that “it’s always easier to keep a customer than to replace one”, and therefore he would treat every single customer like the most important one (Cathy 26). These two lessons influenced his restaurant...
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...Online Purchasing of Goods and Services Amr El Sayed 900091985 Maie Kandeel 900100546 MGMT 311 Business Law Dr. Ahmed Sallam Fall 2013 Abstract: Online purchasing of goods and services has become increasingly common with the increased use of Internet and online services, enhancements in technology and globalization of the world. Because this issue has become more common, security of buyers and sellers is a pressing issue that needs to be looked into. Online contracts and payments play a big role in the purchasing of online goods and services and this will be the main purpose of this paper. Table of Contents I. Introduction to online purchasing of goods and services II. Contract Formation III. E-Signature IV. Laws related to online purchasing of goods and services a. Traditional Consumer Protection Regulations b. Online Regulations V. Advantages and disadvantages c. Advantages d. Disadvantages VI. Fair contract terms and conditions VII. Protection e. Protection against stealing f. What to do if you have a complaint VIII. Case Study IX. Bibliography I. Introduction to online purchasing of goods and services Online purchasing of goods and services is basically electronic commerce, where consumers directly buy goods and services over the Internet using a web browser. Or in more recent years, through a phone application, this is known as mobile commerce or m-commerce. Online commerce substitutes for the activity...
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...What is GST? The Goods and service tax is an initiative towards a reform in which this tax will replace all the indirect taxes in the Centre as well as the State, which can be levied in case of a sale being made or a service being provided. It is especially necessary in the current scenario, due to the degrading effects of the present tax system of CENVAT and State Vat system and the other complexities that prevail in the tax system of India. Some of the taxes that will be replaced under the central taxes are Service Tax, Surcharges, Central Excise Duty, Customs Duties and other Excise Duties. Some of the taxes that will be replaced under the state taxes are Luxury Tax, Entertainment Taxes, Tax on gambling and betting, Lottery Taxes, surcharges etc., as long as they are related to entry tax and the supply of goods and services. Due to reasons, which are social, environment related as well as those related to import dependence, certain products like high-speed diesel, alcohol (human consumption) is not included. Also, the direct taxes will be exempted from the GST, including capital gains, corporate and income tax. To better understand GST, consider the following: There exists a manufacturer, retailer and dealer (wholesaler). Goods and Service Tax is 10%. Now assume that the manufacturer buys the raw materials worth Rs 100 for Rs 140. Therefore, the total GST he will pay is Rs 4 by getting a tax credit of Rs 10 on the raw materials he had purchased. Now, the...
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...Design of goods and services at nestle As consumers become increasingly demanding of more social and environmental sustainability efforts from their favorite brands, Nestlé is one multinational that is responding in kind. The challenges for the world’s largest food company, however, are as complicated as the company’s long and tangled supply chain. Nestle is turning to lifecycle assessments, the latest in eco-design software and more sustainable innovations across the company’s operations and supply chain. From agriculture to packaging, Nestlé now competes with other leading consumer goods companies such as Unilever and P&G that are mitigating their impact on the environment and society while still providing value to consumers. Now Nestlé is in the midst of a massive reset as it reevaluates everything from its energy portfolio to the impact of water scarcity on its suppliers across the globe. Ecodex Nestlé’s sustainability and product development teams start with software programs such as Ecodex, which allows users to evaluate products’ impacts based on a variety of hypothetical criteria. By simulating changes in a design, recipe or manufacturing process, or even geographic shifts in sourcing, a Nestlé employee can view that proposed redesigned product’s ramifications on climate change, energy consumption, land use and effects on local water supplies and waste streams. The tool uses information specific to the food and beverage industry to provide rapid and accurate...
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...1. Introduction Services’ marketing is a sub field of marketing which covers the marketing of both goods and services. Goods marketing include the marketing of fast moving consumer goods (FMCG) and durables. Services marketing typically refer to the marketing of both business to consumer and business to business services. Common examples of service marketing are found in telecommunications, air travel, health care, financial services, all types of hospitality services, car rental services, and professional services. Services are economic activities, rather than tangible products, offered by one party to another. Rendering a service to recipients, objects, or other assets depends on a time-sensitive performance to bring about the desired result. In exchange for money, time, and effort, service customers expect value from access to goods, labor, professional skills, facilities, networks, and systems; but they do not normally take ownership of any of the physical elements involved. Services’ marketing is a form of marketing that focuses on selling services. They can be tricky to sell, and the marketing approach for them is much different than the approach for products. Some companies offer both products and services and must use a mixture of styles; for example, a store that sells computers also tends to also help people select computers and provide computer repair. Such a store must market both its products and the supporting services it offers to appeal to customers. 1.1 Origin...
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...KRISTINE PALINGAYAN ABLAZA BST1 HISTORY OF THE TRAVEL AGENCY AND GENERATION A travel agency is a private retailer or public service that provides tourism related services to the public on behalf of suppliers such as airlines, car rentals, cruise lines, hotels, railways, and package tours. In addition to dealing with ordinary tourists most travel agencies have a separate department devoted to making travel arrangements for business travelers and some travel agencies specialize in commercial and business travel only. There are also travel agencies that serve as general sales agents for foreign travel companies, allowing them to have offices in countries other than where their headquarters are located. The British company Cox & Kings is sometimes said to be the oldest travel agency in the world, but this rests upon the services that the original bank, established in 1758, supplied to its wealthy clients. The modern travel agency first appeared in the second half of the 19th century. Thomas Cook, in addition to developing the package tour, established a chain of agencies in the last quarter of the 19th century, in association with the Midland Railway. They not only sold their own tours to the public, but in addition, represented other tour companies. Other British pioneer travel agencies were Dean & Dawson,the Polytechnic Touring Association and the Co-operative Wholesale Society. The oldest travel agency in North America is Brownell Travel; on July 4, 1887, Walter T....
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