Tuesday, November 6, 2012
business manners, underderstanding etiquette, cross cultural etiquette, tips
Five Business Manners That Matter
The knowledge of business etiquette applies to all, whether you’re a successful business executive or a recent college graduate just entering the business world. We can all use gentle reminders of how to behave appropriately in our day-to-day business life. There may be times when you find the adage true that “you don’t know what you don’t know,” so it behooves you to learn as much as you can about the finer aspects of business protocol, as well.
Some may disagree, but in the twenty-first century, although it is certainly less true than in the past, for a woman to be successful in the business world, she must often work harder, stay later and be more prepared than her male counterparts; unfair, but still, unfortunately, true. There are many things that a woman can do, though, that go a long way in ensuring that she is taken seriously immediately and consistently and that her hard work and knowledge are what her co-workers and superiors know to be true of her.
The following should be your rules to work by:
1. Be Prepared
When meeting with co-workers, superiors or clients, the best strategy is to be prepared—your subject knowledge must be thorough and your written materials impeccable. You never get a second chance to make a good first impression—and in business, as in life, impressions are everything.
When meeting with co-workers, superiors or clients, the best strategy is to be prepared—your subject knowledge must be thorough and your written materials impeccable. You never get a second chance to make a good first impression—and in business, as in life, impressions are everything.
Your written materials must be of the highest standard. Any brochures or handouts must be edited and reviewed keenly. There is no room for error with spelling or grammar. You must also ensure that you have all of the materials that you will need, packaged together neatly ahead of time, and bring extras just in case.
Your business cards must be of the highest quality with up-to-date information and not torn or bent. When presenting your card, turn it around and hand it to the person face-up, so that they can read it easily. Note: Remember to receive materials with respect—read them thoughtfully and treat them carefully. If they have prepared as you have, they have worked hard to ensure that their materials are of the highest caliber, as well; they would not like to see them go unread, scribbled on, or callously shoved into a briefcase.
Depending on the nature of the meeting, be ready to answer your client’s questions, but also be ready to ask relevant questions—this shows that you are well versed on the subject and interested in doing an above-average job. It might even be said that your knowledgeable questions are even more important than your answers. It shows that you are interested in the person or people with whom you are dealing; and everyone appreciates when someone is genuinely interested in them, or their product/service. This is especially true of job interviews. You’ll obviously want to know about the specific aspects of the job, as it relates to salary, etc. but you can also show that you’ve done your research and that you have good working knowledge of the company and position for which you are applying. Ask open-ended questions that will lead to deeper conversation and set you apart from the other candidates because of your demonstrated interest level and initiative.
2. Be Early
Take the time to get directions and find out about parking and other considerations ahead of time. This way, you can determine how much time you’ll need to get to your destination and then can factor in an early arrival time. This will allow you some extra time to collect your thoughts and attend to other personal needs. When you arrive early (9:30–9:45 for a 10:00), you allow yourself time to get to the ladies’ room, get water, or coffee, review your notes—basically time to breathe. This all leads to a more confident and prepared you, and ultimately, your goal of a successful meeting
Take the time to get directions and find out about parking and other considerations ahead of time. This way, you can determine how much time you’ll need to get to your destination and then can factor in an early arrival time. This will allow you some extra time to collect your thoughts and attend to other personal needs. When you arrive early (9:30–9:45 for a 10:00), you allow yourself time to get to the ladies’ room, get water, or coffee, review your notes—basically time to breathe. This all leads to a more confident and prepared you, and ultimately, your goal of a successful meeting
3. Dress Appropriately
When men dress for business, there are few areas where they can go wrong. When a woman dresses for business, there are many more potential errors of judgment that can be made. When in doubt, dress “up” rather than “down” and stay more on the conservative side. You need not dress as a man—dark suit, white shirt, low heels (you get the picture), but if you pay attention to a few important details, you won’t have to worry.
When men dress for business, there are few areas where they can go wrong. When a woman dresses for business, there are many more potential errors of judgment that can be made. When in doubt, dress “up” rather than “down” and stay more on the conservative side. You need not dress as a man—dark suit, white shirt, low heels (you get the picture), but if you pay attention to a few important details, you won’t have to worry.
Make sure your skirt is not too short or too tight; knee length or just below the knee is flattering and tasteful—no matter what the current style is on Madison Avenue. Pantyhose should be worn in the winter months—in colder climates; but never with open-toed shoes. Pants should fit well and should be the correct length for the shoes that you are wearing—no hems dragging on the ground. Heels are flattering, but they shouldn’t be too high or too difficult to walk in. Blouses and tops should not be too revealing, too low-cut or too tight. Jewelry should be kept to a minimum; tattoos covered and make-up and perfume subtle.
Note: This is not about sacrificing your individuality—your clothes should be a reflection of (the business) you. Remember that here is a time and place to be your (other) self—outside of work.
4. Be Gracious
Say please and thank you to everyone—always and sincerely; to co-workers, superiors, subordinates, restaurant staff, cab drivers, assistants, etc. You will never go wrong by being courteous and polite. Paying attention to how you treat others and caring about other’s feelings and opinions is the ultimate form of kindness and respect.
Say please and thank you to everyone—always and sincerely; to co-workers, superiors, subordinates, restaurant staff, cab drivers, assistants, etc. You will never go wrong by being courteous and polite. Paying attention to how you treat others and caring about other’s feelings and opinions is the ultimate form of kindness and respect.
A smile, eye contact, and a firm handshake complete the package!
5. Follow Through
Did you tell someone you would get back to them? Then do it. Write reminders to yourself or do whatever it takes to make sure you remember to reply to the people that are expecting to hear back from you. If you forget, apologize, but make sure it doesn’t happen again. Your good reputation is at stake and if your co-workers and superiors can’t count on you, you will lose their valuable trust.
Did you tell someone you would get back to them? Then do it. Write reminders to yourself or do whatever it takes to make sure you remember to reply to the people that are expecting to hear back from you. If you forget, apologize, but make sure it doesn’t happen again. Your good reputation is at stake and if your co-workers and superiors can’t count on you, you will lose their valuable trust.
This is especially important with your clients. You must always get back to the people that you are hoping to or already do business with—you will lose business faster than you can say “lost revenue” if you fail to communicate in a timely manner.
When you remember to follow through, you have gone a long way toward gaining your co-worker and/or client’s trust and respect.
Following through with a handwritten thank you note seems to be a dying art, but it will never be out of style, and the more we rely on technology to help us communicate, the more memorable a handwritten note becomes. Within twenty-four hours of attending an event or receiving a gift, you should jot down a short thank you to your host or hostess. The time and effort you take will be appreciated.
Practicing the above “rules” will help you to act with poise, confidence and courtesy and will solidify your place as a true professional with your present or future employer.
And always remember—kindness is contagious!
The Importance of Good Business Etiquette
Etiquette is a very important factor in determining the success or failure of a business or a person; here are a few Tips on Business etiquettes. Etiquette is the way a person presents himself to others, being comfortable and making other people around comfortable.
Good Business Etiquettes - Recipe to Success
It is very important to practice good manners and etiquettes in order to succeed in your business, be liked by people and maintain good relationships with clients, customers and employees.When you do not practice good etiquette intentionally or unintentionally, you are bound to face lot of obstacles on the path to success. But if a person is generally considerate and attentive to the needs of those who work for him/her by following the basic rules of etiquette, he/she will definitely be successful in any venture.
It is easier to make money than to earn respect and accolade from people who know and interact with you like colleagues and employees. Life will definitely be easier if you follow the following Tips on Business etiquettes.
- Make sure to treat each person you interact with such as a secretary or a janitor, no matter what his or her position in the corporation, with respect and make it a rule to be pleasant to everybody no matter what the situation is.
- Let people know that you appreciate what they do which will boost morale and improve work quality.
- Keep records of people who matter to you and acknowledge if they receive a promotion and wish them on their birthdays.
- When organizing meetings make sure that all the participants know about the schedule, the objective of the meeting, matter that is to be discussed and the expected duration of the meeting.
- Distribution of minutes and summaries of meetings and thanking each participant after meetings is a basic courtesy.
- Always return calls, if you are unable to answer have a polite message on the answering machine that will be returned at the earliest. Never be rude or impatient with anyone on the phone.
- Never make anyone wait, be it an employee or employer, or a business acquaintance. Never be late for a meeting or for work.
- Dress is also a very important aspect in maintaining good business etiquette. Businessmen have to appear impeccably groomed.
- Women have to dress appropriately and take care that they do not give a wrong impression to their colleagues. Proper care taken can avert a lot of embarrassment.
- Make sure your employees practice good etiquettes to customers and to each other to be able to work in a friction free atmosphere. Smiling courteous service will definitely help improve business and make a customer become regular.
Tips on Business etiquettes while traveling to a foreign place:
- Make sure you learn all you can about their customs and be aware of social no no's, if there are any.
- While giving gifts make sure that it is appropriate and not a social taboo in their part of the world.
Business etiquette tips for success
Some quick, top-of-mind nuggets for you on various topics - come back often, we’ll keep adding to the list.
- During a business discussion direct eye contact should be made 40 to 60 percent of the time. Less than that and a person is seen as shy or shifty, hiding something, or lacking self-confidence and authority.
- In business introductions, who is introduced to whom is determined by precedence. Persons of lesser authority are introduced to persons of greater authority, regardless of gender.
- “Ms.” is the correct form of address or honorific for a woman in the business arena regardless of what she chooses to call herself in public.
- If someone doesn’t remember your name , come to their rescue immediately. Extend your hand, smile, and say your name.
- Your business card is part of your visual communications package. It should be given to someone in such a way that the recipient remembers the giver.
- Present the card with the print facing the recipient so the recipient will not have to turn it around to read it.
- When extending an invitation to a client for lunch or dinner, the burden of choice of where to dine belongs to the host.
- If leaving the table briefly, place your napkin on the seat of the chair.
- During a meeting or interview, cell phones and BlackBerry devices should be left in your office or briefcase. The only exception would be on your belt. They should not be placed on a desk or boardroom table.
- The person who is physically present with you takes precedence over a cell phone call.
Cross-Cultural Business Etiquette
Every culture is different, and has different styles of etiquette. Every day deals are lost through misunderstandings, even between relatively similar cultures. These misunderstandings do not have to be huge to have an effect on your business – a poor first impression could leave your prospective partner or customer with a bad feeling. Knowing the right etiquette can help you avoid this and save you a great deal of wasted time and money.
Clothing
Wearing the appropriate clothing makes a good first impression and sets the tone for how you will be seen. If you work in an industry in which casual dress is the norm, make sure it is also the norm in the country and company you are visiting. For example, men tend not to wear suit jackets and ties in Colombia and the Middle East , but are still expected to be dressed smartly. Women may also need to think about the appropriate skirt length, makeup, jewelry and heel height. When in doubt, it is always best to dress conservatively, and in dark colors.
Conversation
Communicating in a foreign country can be difficult. Often you may find that your business colleague speaks English -- but if they speak imperfectly, you will need to remember not to correct them as that mat be seen as impolite. You should also determine what makes an appropriate topic of conversation in the country you are visiting. For example, in Japan , people do not tend to talk about money, and in Switzerland
Greetings
Many countries have their own style of greeting, and there is nothing more off-putting than than try to kiss someone who is only expecting a handshake, or holding out your hand pointlessly while the other person bows. In many countries, it is also polite to give small gifts when meeting someone. Make sure you find out the local custom and avoid giving an overly expensive gift that the other person will feel the need to reciprocate. In many Southeast Asian cultures, business cards are usually exchanged and no one is taken seriously who does not have a business card. The cards must also be treated with respect, and not shoved immediately into a pocket.
Forms of Address
While people in the U.S.
Time And Space
In some cultures, it is not expected that people will be on time. If your colleague or customer is late for a meeting, it is best to take a relaxed view. People from different cultures also have different ideas about personal space. Standing close or touching another person may be considered appropriate. However, this may not apply to those of the other sex. For example, in the Middle East , men often hug each other and hold hands, but do not touch women they are not related too, and the same is true of women. In Mexico , it is OK to give a friendly pat on the back, but in China Thailand and India
Monday, November 5, 2012
importance of fire insurance
Importance Of Fire Insurance
Fire insurance is the type of insurance coverage, in which an individual pays some sum of money to the company, in exchange to receive advantages for the fireplace losses.
Fire insurance provides the security for home, share, home furniture, enterprise buildings, etc,. Fireplace insurance provides the price of alternative of properties and assets, which gets broken due to the fireplace incident.
Fire insurance provides the advantages for the homeowner in these ways
Fire insurance provides advantages to the enterprise in the following ways
Fire accidents are very much unexpected but are heavily destructive. Hence, having a fireplace insurance is very much essential.
The expectations of living have definitely modified with the times and this only indicates that more people look for any paths that can lead to benefits. With there being so many kinds of insurance available in the market, some select to leave fireplace insurance, stating that the threats of a fireplace developing are more distant, than say a enter. True, auto insurance, insurance all seem to take main concern, but that does not make fireplace insurance any less important.
Protecting property or home from fireplace is essential, more so if you know the chance of one developing is very real. Mature qualities usually bring more possibility with them. Their age predisposes them to have some substandard electrical wiring, or some leaking plumbing, which would all end up producing a fireplace. Modern, more latest qualities are at less possibility, but random shoots can happen, like during hefty stormy weather when super hits. A fireplace insurance coverage protects for the harm due to a fireplace in two ways. One is paying out the sum of money comparative to the value of the home or business, after the fireplace is out. The other is by getting together with the costs of changing the piece of property or home, and in this case, that indicates fixing and restocking.
It’s bad enough when your home uses up down due to some inevitable incident, but when you do not have an insurance plan to help you move back to your typical life, its even more intense. With that being said, it is well to consider the significance of a fireplace insurance plan, especially if you know you cannot manage to change the home in your own financial initiatives. You get a chance to explain the essentials of the insurance plan you want, showing what you want protected in the insurance plan, and what to be overlooked. If you can not get your kind of insurance plan with one insurance provider, there are always so many others to select from.
Fire insurance provides the security for home, share, home furniture, enterprise buildings, etc,. Fireplace insurance provides the price of alternative of properties and assets, which gets broken due to the fireplace incident.
Fire insurance provides the advantages for the homeowner in these ways
- It provides the price of damage for the building
- It provides the rc, if any home furnishings are damaged due to the fireplace incident, like plywood home furniture, carpets, clothes.
- It provides alternative or maintenance price for the electronic items,which is broken due to fireplace, like television, computer, air coolers.
Fire insurance provides advantages to the enterprise in the following ways
- It covers the price of share broken due to the fire
- It provides the loss of life advantages to employee, in case of loss of life occurred due to the fireplace incident.
- It provides the alternative or maintenance price for the machines, if they get broken due to fireplace incident.
- It provides the medical expenses for the employees, if they get injured due to the fireplace incident.
Fire accidents are very much unexpected but are heavily destructive. Hence, having a fireplace insurance is very much essential.
The expectations of living have definitely modified with the times and this only indicates that more people look for any paths that can lead to benefits. With there being so many kinds of insurance available in the market, some select to leave fireplace insurance, stating that the threats of a fireplace developing are more distant, than say a enter. True, auto insurance, insurance all seem to take main concern, but that does not make fireplace insurance any less important.
Protecting property or home from fireplace is essential, more so if you know the chance of one developing is very real. Mature qualities usually bring more possibility with them. Their age predisposes them to have some substandard electrical wiring, or some leaking plumbing, which would all end up producing a fireplace. Modern, more latest qualities are at less possibility, but random shoots can happen, like during hefty stormy weather when super hits. A fireplace insurance coverage protects for the harm due to a fireplace in two ways. One is paying out the sum of money comparative to the value of the home or business, after the fireplace is out. The other is by getting together with the costs of changing the piece of property or home, and in this case, that indicates fixing and restocking.
It’s bad enough when your home uses up down due to some inevitable incident, but when you do not have an insurance plan to help you move back to your typical life, its even more intense. With that being said, it is well to consider the significance of a fireplace insurance plan, especially if you know you cannot manage to change the home in your own financial initiatives. You get a chance to explain the essentials of the insurance plan you want, showing what you want protected in the insurance plan, and what to be overlooked. If you can not get your kind of insurance plan with one insurance provider, there are always so many others to select from.
Importance of Fire Insurance for Businesses
No type of risk is more dangerous than fireplace and arson that intends enterprise building in the U. s. Business. This is why high-risk enterprise qualities like dining establishments are recommended to take additional fireplace insurance to make sure they are well ready for such harmful activities.
Basically, fireplace insurance can provide complete take care of against fireplace and smoking damage to the property and its items. Since the actual features and price of take care of will differ on the level of take care of you used for, it is important to make sure that you are effectively protected. Thus, conditions and insurance plan information must be tested before carrying out to a fireplace insurance coverage.
Furthermore, there are other accessories that go with fireplace insurance that you have to involve in your take care of. Although they will price you a little bit more on charges, these will confirm to be important in the future. Such involve legal take care of, personal belongings, and old for new take care of. Just take be aware of administration accepted fireplace protection products that you can use, which will help bring down the price of your fireplace expenses.
Basically, fireplace insurance can provide complete take care of against fireplace and smoking damage to the property and its items. Since the actual features and price of take care of will differ on the level of take care of you used for, it is important to make sure that you are effectively protected. Thus, conditions and insurance plan information must be tested before carrying out to a fireplace insurance coverage.
Furthermore, there are other accessories that go with fireplace insurance that you have to involve in your take care of. Although they will price you a little bit more on charges, these will confirm to be important in the future. Such involve legal take care of, personal belongings, and old for new take care of. Just take be aware of administration accepted fireplace protection products that you can use, which will help bring down the price of your fireplace expenses.
Sunday, November 4, 2012
Monday, October 29, 2012
Registration and Rate of CST
Registration and Rate of CST
The Dealers are provided with an option to register themselves under the provisions of Central Sales Tax Act, 1957.
The Act provides special benefits to the Registered dealers like
charging lower or NIL rate of CST on submission of Statutory Forms as
prescribed for various types of Interstate Sales.
The unregistered dealers engaged in interstate
transactions are required to pay CST at higher rates than the rates
applicable to the Registered dealers. Also the unregistered dealers
cannot claim any exemptions on the basis of Statutory Forms as specified
by the CST Act.
The Basic Central Sales Tax Rate as applicable to
the Interstate transactions made by the Registered Dealers is 2%. The
interstate transactions are charged at this rate, if the purchasing
dealer issues the Statutory Form – Form C to the selling dealer. The selling dealer submits this Form C with his sales tax authorities for payment of 2%
and the forms are supplied by the Department on an application by the
Registered dealers. Also the interstate sales are exempted from CST, if
such sales are made to specified persons or organisations, on
submission of Forms like Form H, I, J etc,
In case of unregistered dealers, all the interstate
purchases or sales made by them will attract the local sales tax rates
of the selling state. No concessions or exemptions can be given for
sales in the course of interstate trade made to any category of persons
or organisations.
Some of the points relating to CST rates are as follows:
-
For an inter-state sale to a registered dealer against form C, the rate of CST is 2% or local sales tax rate whichever is lower.
-
Under the local sales tax law, if the sale or purchase is exempt or Nil, the rate of CST applicable in case of sale to unregistered dealer or registered dealers, will also be exempt or Nil.
-
The Sales Tax rates applicable for sale of declared goods, w.e.f 1-4-2007 is as follows:
-
The sale of declared goods made to registered dealer, will attract levy of CST at local sales tax rate or 2%, whichever is lower.
-
The inter-state sale made to unregistered dealer, will be liable to CST at rates which is equal to VAT/sales tax rates as applicable within the State.
DIFFERENCE BETWEEN VAT AND SALES TAX IN INDIA
Difference Between VAT & Sales Tax in India
Value added tax and sales tax are a
source of revenue for India's government.
The purpose of a taxation system is
to enable the state treasury of a country to provide basic services and certain
amenities to its people. India, as a nation, has a well-organized tax structure
which is managed by two federal bodies: the Central and State Governments.
Taxes are provisioned and implemented as per the Constitution of India, with
the main being Customs Duties, Income Tax, State Excise, Stamp Duty, Service
Tax, Entertainment Tax, Sales Tax and VAT (value added tax). VAT and sales tax
are primarily levied as a source of revenue for the government.
1.
Characteristics
o
VAT is an indirect tax that is
imposed on each stage of production of an item. It is reflected in the final
price of an item, which is usually more than its cost of production.
Sales tax
is a direct tax that is levied on a the price of a finished product, or
service, and imposed on a buyer.
2.
Mechanism
o
VAT is calculated by subtracting the
cost of output from the value of output. This can be written as: VAT = Value of
Output -- Cost of Output.
VAT can
also be calculated by subtracting the input tax from the output tax, or VAT =
Output Tax -- Input Tax.
Sales tax
is calculated by multiplying the current tax rate with the cost of an item, or
Sales Tax = Tax Rate x Cost of an Item.
3.
Types
o
India's main types of sales tax are
retail sales tax, luxury or selective sales tax, general sales tax, gross
income tax and gross receipts tax.
According
to James M. Bickley in the book "Value Added Tax," the main types of
VAT include consumption VAT, gross product VAT and income VAT.
4.
Benefits
o
According to Alan S. Blinder in the
book "The Economics of Public Finance," sales taxes are easy to
administer, convenient to pay, preserve incentives, reach the fluid population
(tourists, commuters and others on the move who typically evade income tax and
other direct taxes due to their transient state), harmonize fiscal objectives
by controlling extravagance to a certain degree, are correlated with
progressive income tax and contribute to the government."
According
to Dinesh Maidasani in the book "Straight to the Point - Tally 8.1,"
the VAT is a fairly straight forward tax that was implemented to reduce the
complexities associated with the sales tax system. VAT is transparent, simple,
flexible, equitable, fair and provides some revenue to India's government as
compared to sales tax.
5.
Drawbacks
o
According to Blinder, sales taxes
are regressive as they tend to burden poorer and larger families more heavily
than richer and smaller families; and heighten deflation and depression in
periods of financial crisis and unemployment.
VAT is
often difficult to administer from business and administrative perspectives;
and has a higher negative impact on labor intensive businesses as compared to
capital intensive businesses.
NOTES ON CST ACT
OBJECTIVES OF CST ACT
(I) Objects of Enacting the Central Sales Tax Act, 1956
The act has been enacted to formulate the principles regarding the following:
(A) To formulate principles for determining when a sale or purchase of goods takes place:
i) in the course of Inter-State trade or commerce u/s 3; or
ii) outside a state u/s 4; or
iii) in the course of import into or export from India u/s 5.
(B) To provide for levy u/s 9(1) and 9(2) and distribution of taxes u/s 9(3) on sale of goods in the
course of Inter-State trade or commerce.
(C) To declare certain goods to be of a special importance in Inter-State trade or Commerce u/s 14.
(D) To specify the restriction and condition to which state laws imposing taxes on sale or purchase of
goods of special importance in the course of Inter-State trade and commerce shall be subjected
to u/s 15.
FEATURES OF CST ACT
(II) Features of the Central Sales Tax Act, 1956
These are the important features of the Act:
(a) This Act extends to the whole of India.
(b) There are 26 sections in this Act.
(c) It contains the provision for single point tax.
(d) It also contains the provision for multiple-point tax.
(e) The declared goods (goods of special importance in inter-state trader or commerce) are taxed at
lower rate in comparison to other goods.
(f) The dealer, who have inter-state trade, is subject to tax without no exemption limit.
(g) The dealers, who are dealing in inter-state trade, are require to get themselves registered and
they should display the registration certificate at all places of business.
(h) Where the goods have been sold outside the state, the tax shall be levied by the Central
Government but it is collected by that State Government from where the goods have been sold
outside the state.
(i) The tax collected is given to the same State Government which has collected the tax.
(j) Tax collected is deposited in the ‘Consolidated Fund of India’, in case of Union Territories.
(k) For proper implementation of various provisions of this Act, the Central Government and the
State Government are empowered to frame rules and regulations.
1. Explain the Nexus theory Concept and discuss the remedies to the practical problems posed by
the nexus theory in case of taxability of inter-State transactions.
The nexus Theory in commodity taxation means that there should be a territorial nexus between the
person sought to be taxed and the State seeking the tax, i.e., territorial connection. (Nexus means
connection or relationship).
Elements of territorial connection:
(a) The connection must be real, not imaginary.
(b) The liability sought to be imposed must be pertinent to the connection.
However, nexus theory is not a licence for States to assume extra-territorial jurisdiction and levy tax on
transactions outside the State for simple reasons, such as:
· Mere presence of goods in the taxing State on the date of agreement even though property may
have passed elsewhere.
· Mere production or manufacture of goods in a State.
The limited utility of the Nexus Theory was discussed at length by the Supreme Court in the following
cases:
· Bengal Immunity Co. State of Bihar.
· Tata Iron and Steel Co. Ltd. vs. State of Bihar.
Article 286 was introduced in the Constitution to remedy this problem. It provides that:
No law of a State shall impose, or authorise the imposition of a tax on the sale or purchase of goods
where such sale or purchase takes place –
· Outside the State, or
· In the course of the import of the goods into, or export out of, the territory of India.
(III) Important Definitions Under Section 2 of CST
(a) Appropriate State [Sec. 2(a)]
As per Section 2(a) of CST Act, ‘Appropriate State’ means
(a) in relation to dealer who has one or more places of business in the same State, that State
(b) in relation to a dealer who has places of business situated in different States, every such State
with respect to place or places of business situated within its territory.
Thus, a dealer has to register only with sales tax authorities where he has ‘place of business’.
For example:
Places of Business Appropriate State
1. Allahbad, Kanpur, Varanasi and Lucknow Uttar Pradesh
2. Allahbad and Varanasi, Bhopal and Katni for Allahabad & Varanasi would be Uttar Pradesh
and for Bhopal and Katni would be M.P.
Importance of Appropriate State:
The administration, levy and collection of tax has been delegated to the state, although it is a
Central Act.
The provisions regarding returns, appeals, penalties, etc. are dealt with by the appropriate state.
The tax payable by a dealer depends on the rates applicable to the sale or purchase of goods in
the appropriate state.
Registration is carried out in the appropriate state.
The authority to assess, reassess, collect and enforce the payment is entrusted to the officers of
the appropriate state.
(b) Business [Sec.2 (aa)]
Section 2 (aa) of CST Act defines that ‘business’ includes
(i) any trade, commerce or manufacture, or any adventure or concern in the nature of trade,
commerce or manufacture, whether or not such trade commerce, manufacture, adventure or
concern is carried on with a motive to make gains or profit and whether or not any gains or
profit accrues from such trade, commerce, manufacture, adventure or concern; and
(ii) any transaction in connection with or incidental or ancillary to, such trade, commerce,
manufacture, adventure or concern.
Note:
Thus, as per this definition, profit motive is immaterial. Business includes ‘Adventure’,
occasional transactions will also be covered. Adventure implies some ‘speculation’. Incidental
or ancillary business is also covered e.g. sale of used fixed assets, sale of scrap, sale of old
machinery & old furniture etc. is taxable, though normally the dealer may not be in business of
selling fixed assets, furniture or machinery e.g. Central Excise Authorities selling the goods
confiscated by them are liable to pay sales tax.
(c) Crossing the Custom Frontiers of India [Sec. 2 (ab)]
Section 2 (ab) of CST Act states that crossing ‘Customs Frontiers’ of India means crossing the
limits of the area of a customs station in which imported goods or exported goods are ordinarily
kept before clearance by customs authorities. Customs Station and Customs Authorities have
same meaning as per Customs Act.
Customs Station means customs port (for vessels), customs airport (for Aircrafts) or land
customs station (for trucks or motor vehicles). Central Government is authorized to specify such
places. Within such customs port, Customs area is specified by Customs Authorities where
imported goods or export goods are ordinarily kept by customs authorities.
(d) Dealer [Sec. 2 (b)]
Section 2(b) defines that “dealer” means any person who carries on (whether regularly or
otherwise) the business of buying, selling, supplying or distribution of goods, directly or indirectly,
for cash, or for deferred payment, or for valuable consideration, and includes
(i) a local authority, a body corporate, a company, any co-operative society, club, firm, Hindu
Undivided Family or other association of persons which carries on such business
(ii) a factor, broker, commission agent, del- credere agent, or any other mercantile agent, by
whatever name called, whether the same description as herein-before mentioned or not,
who carries on the business of buying, selling, supplying, or distribution, goods belonging
to any principal whether disclosed or not and
(iii) an auctioneer who carries on the business of selling or auctioning goods belonging to any
principal, whether disclosed or not and whether the offer of the intending purchaser is
accepted by him or by the principal or a nominee of principal and
(iv) Any government which whether or not in course of business, buys or sells, supplies or
distributes goods for cash or for deferred payment or for commission, remuneration or
other valuable consideration is deemed to be a dealer.
However, in relation to any sale, supply or distribution of surplus, un-serviceable or old
stores or materials or waste products or obsolete or discarded machinery or part of
accessories, thereof, the government shall not be deemed to be a dealer under this Act.
(3) Following are not dealers:-
(a) a tailor; (b) a dry cleaner; (c) a doctor who treats a patient; (d) ornament maker who is
contractor for work and labour; (e) a photographer; (f) a painter; (g) a sculptor; (h) an
advertising (i) an artist who creates a work of art for reward (j) a newspaper publisher (k) a
radiologist.
Note: If the damaged goods of insurer are possessed by insurance company under the
‘doctrine of Subrogation; which is sold by the insurance company later on, than the
insurance company shall be treated as dealer.
(e) Declared Goods [Sec. 2(c)]
Section 2(c) of CST Act defines Declared Goods as those declared under Section 14 of CST Act
as goods of special importance in inter-state Trade or Commerce. Section 14 of CST Act gives
a list of such goods and section 15 specifies restrictions on power of States to tax such goods.
U/s 14, the following goods have been declared as goods of special importance in inter state
trade or commerce.
(1) Coals and coke in all forms (excluding charcoal.)
(2) Cotton in unmanufactured form but not cotton waste.
(3) Manmade fabrics___ fabrics of manmade filament yarn i.e. artificial textile material,
polyester filament yarn, staple fibres, polyester staple fibre tyre card, fabric, impregnated
textile fabrics etc.
(4) Cotton fabrics, cotton yarn (excluding cotton yarn waste).
(5) Hides and skins (Raw or cleaned)
(6) Iron and steel
(7) Jute – whether baled or otherwise
(8) Oilseeds
(9) Sugar and Khandsari sugar
(10) Unmanufactured tobacco, cigars, cigarettes, biris, chewing tobacco, snuff etc.
(11) Cereals i.e. paddy, rice, wheat, bajra, jowar, barley, maize, ragi, kolon, kutki etc.
(12) Crude oil i.e. crude petroleum oil and crude oil obtained from bituminous minerals
(13) Pulses i.e. gram, tur, masur, moong, urad, arhar, moth, khesari etc.
(14) Woven fabrics of wool.
(15) Aviation Turbine fuel sold to a Turbo Prop Aircraft.
Note:
(1) Under Section 15, there are some restriction and conditions in regard to taxation of declared
goods.
(2) The Tax payable on the sale or purchase of declared goods inside the state shall not exceed
4%.
(3) Tax shall not be levied at more than one stage in case of declared goods.
(4) The dealer shall be entitled to refund of tax, if the following conditions are satisfied.
(a) Tax has been paid at the time of sale or purchase to a state government of the declared
goods.
(b) Afterwards, all above goods are sold in the course of interstate trade or commerce.
(c) Tax has been paid on such goods under CST . Act.
(d) The dealer is fulfilling the conditions with regard to refund in the State Act.
(e) The refund shall be granted to the dealer who sells the goods in the course of Inter-State
trade commerce.
(f) The dealer who has paid tax to the state government shall not be entitled to claim refund.
(f) Goods [Sec. 2 (d)]:
Section 2 (d) of CST Act defines that ‘goods’ includes all materials, articles, commodities and all
kinds of movable property,
but does not include newspapers, actionable claims, stocks, Shares and securities.
Goods must be movable. CST cannot be levied on immovable property.
(1) Following are the instances of goods for C.S.T. Act:
(a) Electricity; (b) Copy right; (c) Patent; (d) Lottery ticket; (e) Readymade computer
software; (f) Advance REP license; (g) growing crops, grass, standing tress on the land, if
these have been served from the land, they shall become goods; (h) Air or water, if there are
made available to customers or consumers at cost (i) Old Newspaper if sold as waste.
(2) Following are the instances of not-goods (since these items has been specially excluded from
the meaning of goods for CST Act )
(a) Share; (b) securities like debentures; (c) Money; (d) Stocks; (e) Newspapers;
(f) Actionable claims; (g) Growing crops, grass, standing trees on the land.
Note: Actionable claims means which can be recovered through civil court.
(g) Place of Business [Sec. 2(dd)]
Section 2(dd) of CST Act defines that ‘Place of Business’ includes
(i) place of business of agent where dealer carries on business through an agent
(ii) warehouse, godown or other place where a dealer stores his goods
(iii) place where a dealer keeps his books of account. This is an ‘inclusive definition’ i.e.
other places of business e.g. where dealer has a shop factory is obviously covered.
A dealer can be have more than one ‘places of business’ within one State or even
within one city.
If he has ‘places of business’ in different States, he will have to register in each such State.
(h) Registered Dealer
It means a dealer who is registered under Section 7 of this Act. No dealer can make an Inter
State Sale unless he is registered under CST Act.
(i) Sales [Sec. 2(g)]
Section 2 (g) defines that Sale with its grammatical variations and cognate expressions, means
any transfer of property in goods by one person to another for cash or for deferred payment or
for any other valuable consideration, and includes a transfer of goods on hire-purchase or other
system of payment by installments, but does not include a mortgage or hypothecation or a
charge or pledge on goods.
Essential elements of sale are
(1) there must be transfer of goods;
(2) general property in the goods should be transferred to buyer from seller;
(3) consideration i.e. price must be paid or agreed to be paid;
(4) there must be two parties – buyer &seller;
(5) valid mutual consent of both parties is essential.
Deemed Sale [ Sec.2(g) (i), (ii), (iii), (iv), (v) and (vi)]
i. Transfer of property in goods for Cash, Deferred Payment or Other Valuable Consideration;
ii. Transfer of Property in goods (whether as goods or in some other form) involved in the execution of
Works Contract;
iii. Delivery of goods on Hire Purchase or under Instalment System;
iv. Transfer of right to use any goods for any purpose(whether or not for a specified period) for cash,
deferred payment or other valuable consideration;
v. Supply of goods by any unincorporated association or body of persons to a member thereof for
cash, deferred payment or other valuable consideration;
vi. Supply, by way of any service, of goods, being food or any other article for human consumption or
any drink(whether or not intoxication), where such supply or service, is for cash, deferred payment
or other valuable consideration.
Notes:
· ‘Hire-purchase’ is also included in the definition of ‘sale’.
· Sales tax cannot be levied on the full value of Works Contract but only on value of goods actually
transferred in execution of works contract.
· Incidence of tax only when property in goods is transferred and property is
transferred only when goods are ascertained. No Tax till the goods remain un ascertained.
· CST is payable even if there is compulsory transfer under Government orders,
if goods are a controlled commodity.
· Sale of illegal goods are also liable to sales tax.
· Sales include Barter.
There are some transactions which are not sales:
(a) Charge/mortgage/hypothecation etc.
(b) Leasing
(c) Job work/processing
(d) Consignment/depot transfer/branch transfer
(e) Work contract.
(j) Sales Price [Sec. 2 (h)]
Section 2(h) states that, ‘Sale Price’ means the amount payable to dealer as consideration for the sale of
any goods.
Sale price inclusive of CST: The ‘sale price’ is total consideration received and is taken as inclusive
of CST, whether or not it is shown separately in Bill (Invoice). Invoice can be prepared (a) by showing sales
tax separately in invoice, or (b) by not showing it separately-in which case will be cum-tax price i.e. price
inclusive of CST. In either case, ‘Sale Price’ will be the total amount received by the seller i.e. inclusive of
sales tax.
Sale Price is inclusive of following:
(a) Central Sales Tax- whether or not shown separately in invoice;
(b) excise duty-Sales tax is payable on excise duty whether or not shown separately in invoice and even if
paid directly by purchaser;
(c) cost of packing material;
(d) packing charges –i.e. labour charges for packing goods;
(e) bonus discount or incentive bonus for additional sales effected by the distributor/dealer
(f) insurance charges –if incurred by seller as per contract for F.O.R. delivery of goods:
(g) cost of freight if not separately charged in invoice (borne by seller);
(h) design charges charged separately in respect of the goods manufactured as per design and sold to
buyer is includible for purpose of sales tax;
(i) Any sum charged for any thing done by the dealer in respect of goods at the time of or before delivery of
the goods.
Exclusions from sales price are:
(a) freight & transport charges for delivery of goods when freight transport charges are charged separately
in invoice(borne by buyer);
(b) cost of installation and commissioning – if shown separately in invoice(borne by buyer);
(c) cash discount for making timely payment;
(d) trade discount – deduction from list price to wholesaler/dealer.
(e) transit insurance charges incurred at the request by buyer;
(f) goods returned by buyers within six months;
(g) goods rejected by buyers;
(h)custom duty paid by buyer, if goods sold on C.I.F. basis and documents handed over to buyer for taking
delivery of goods from customs after paying customs duty directly to customs authorities.
Determination of Sale Price
Detail Rs Rs
Price (Inclusive of Excise andcustoms duty ) xxx
Less: (i) Trade Discount xxx
(ii) Off-Seasonal Discount xxx
(iii) Special Discount xxx
Add: Expenses incurred before or at the time of delivery of goods e.g. Packing expenses,
Weightment etc.
Less: Cash Discount
(l) Sale Tax Law[Sec.2(i)]
Section 2(i) of CST Act, defines ‘Sales Tax Law’ as any law for the time being in any state or part thereof ,
which provides for the levy of taxes on sale or purchase of goods generally or on any specified goods
expressly mentioned in that behalf.
Section 2(i) also defines ‘General Sales Tax Law’ as the law for the time being in force in any State or part
thereof, which provides for the levy of tax on the sale or purchase of goods generally.
Some States also have laws for levy of tax on specified commodities or specified transactions. Such law is
not ‘general sales tax aw’ of a state.
(m) turnover [Sec. 2(j) ]
It is defined under Section 2(j) as aggregate of the sales prices received and receivable by him in respect of
sales of any goods in the courts of Inter- State trade or commerce made during any prescribed period and
determined in accordance with provisions of Central Sales Tax & Rules.
How to calculate Tax Payable?
CST(Rs.) = xRate
+
Aggregate Sale Price inclusive of CST
Rate of CST
of CST
100
(n) Works Contract [Sec.2(ja)]
Goods Returned [Sec. 8A(b)]
Section8A(b) provides that if goods are returned by buyer within six months, its sales prices will be
deducted
From ‘aggregate sale price’, if satisfactory evidence is produced sales tax authority in respect of the same.
(o) Exemptions from CST
(a) The exemptions are: (a) subsequent sales by transfer of document
(b) sale of goods which are exempt/chargeable to lower tax if sold within the State;
(c) exemption by issuing a notification; (d) sales in course of import/export.
(p) Exemptions by Issuing Notification
State Government can grant exemption under Section 8(5) in respect of inter-state sales effected from the
state.
Such notification should be in
(1) Public interest;
(2) by way of notification in official Gazette;
(3) exemption may be subject to condition;
(4)The exemption may be (i) to any dealer for goods or classes of goods or (ii) in respect of all sales of
classes of goods by any class of dealers
(5) The exemption may be total or partial.
(V) Formulation of Principles for Determining when a Sale or Purchase Of Goods Takes Place in the
Course of Inter-State Trade or Commerce (Sec. 3)
Section 3 of CST Act defines Inter-State sale or purchase as follows: A sale or purchase of goods shall be
deemed To take place in the course of Inter-State trade or commerce if the sale or purchase (a) occasions
the movement of Goods from one State to another or (b) is effected by a transfer of documents of title to
the goods during their movement from one state to another. Thus, inter-State sale can be as per Section
3(a) or Section 3(b).
As per Section 3(a), ‘Inter-State sale’ takes place if the sale occasions movement of goods from one State
to another. In Commissioner of Sales Tax Vs. Suresh Chand Jain- (1988), it was held that a sale can be
said to be in the course of inter-state only if two conditions occurs viz. (i) sale of goods and (ii) a transport
of those goods from one State to another. The essential ingredients of Inter-State sale, as decided in
various Supreme Court decisions are as follows:
(i) Transaction must be a completed sale.
(ii) There should be an agreement to sale which contains a stipulation(express or implied) regarding
movement of goods from one State to another.
(iii) It is immaterial whether a completed sale precedes the movement of goods or follows the movement of
goods are in transit. What is important is that movement of goods and the sale must be inseparably
connected.
(iv) There should be physical movement of goods from one state to another. Such movement must be
inextricably connected with sale. The contract may not provide for movement of goods. It is enough if such
movement is result of covenant of sale or is incidental to the contract. It is sufficient if the movement of
goods is implicit in the sale.
(v) It is immaterial in which State the property (i.e. ownership) of goods passes to the buyer.
(vi) Sale need not precede the inter-State movement. Sale can be either before the movement or after the
movement.
(vii) There should be no break between purchase and movement of goods to another State. The words
“occasion movement of goods” from one State to another are most important words in the section & are
subject matter of lot of litigation. The legal position is more or less settled through various judgements of
Supreme Court. The basis requirements are already enumerated above.
(I) Objects of Enacting the Central Sales Tax Act, 1956
The act has been enacted to formulate the principles regarding the following:
(A) To formulate principles for determining when a sale or purchase of goods takes place:
i) in the course of Inter-State trade or commerce u/s 3; or
ii) outside a state u/s 4; or
iii) in the course of import into or export from India u/s 5.
(B) To provide for levy u/s 9(1) and 9(2) and distribution of taxes u/s 9(3) on sale of goods in the
course of Inter-State trade or commerce.
(C) To declare certain goods to be of a special importance in Inter-State trade or Commerce u/s 14.
(D) To specify the restriction and condition to which state laws imposing taxes on sale or purchase of
goods of special importance in the course of Inter-State trade and commerce shall be subjected
to u/s 15.
FEATURES OF CST ACT
(II) Features of the Central Sales Tax Act, 1956
These are the important features of the Act:
(a) This Act extends to the whole of India.
(b) There are 26 sections in this Act.
(c) It contains the provision for single point tax.
(d) It also contains the provision for multiple-point tax.
(e) The declared goods (goods of special importance in inter-state trader or commerce) are taxed at
lower rate in comparison to other goods.
(f) The dealer, who have inter-state trade, is subject to tax without no exemption limit.
(g) The dealers, who are dealing in inter-state trade, are require to get themselves registered and
they should display the registration certificate at all places of business.
(h) Where the goods have been sold outside the state, the tax shall be levied by the Central
Government but it is collected by that State Government from where the goods have been sold
outside the state.
(i) The tax collected is given to the same State Government which has collected the tax.
(j) Tax collected is deposited in the ‘Consolidated Fund of India’, in case of Union Territories.
(k) For proper implementation of various provisions of this Act, the Central Government and the
State Government are empowered to frame rules and regulations.
1. Explain the Nexus theory Concept and discuss the remedies to the practical problems posed by
the nexus theory in case of taxability of inter-State transactions.
The nexus Theory in commodity taxation means that there should be a territorial nexus between the
person sought to be taxed and the State seeking the tax, i.e., territorial connection. (Nexus means
connection or relationship).
Elements of territorial connection:
(a) The connection must be real, not imaginary.
(b) The liability sought to be imposed must be pertinent to the connection.
However, nexus theory is not a licence for States to assume extra-territorial jurisdiction and levy tax on
transactions outside the State for simple reasons, such as:
· Mere presence of goods in the taxing State on the date of agreement even though property may
have passed elsewhere.
· Mere production or manufacture of goods in a State.
The limited utility of the Nexus Theory was discussed at length by the Supreme Court in the following
cases:
· Bengal Immunity Co. State of Bihar.
· Tata Iron and Steel Co. Ltd. vs. State of Bihar.
Article 286 was introduced in the Constitution to remedy this problem. It provides that:
No law of a State shall impose, or authorise the imposition of a tax on the sale or purchase of goods
where such sale or purchase takes place –
· Outside the State, or
· In the course of the import of the goods into, or export out of, the territory of India.
(III) Important Definitions Under Section 2 of CST
(a) Appropriate State [Sec. 2(a)]
As per Section 2(a) of CST Act, ‘Appropriate State’ means
(a) in relation to dealer who has one or more places of business in the same State, that State
(b) in relation to a dealer who has places of business situated in different States, every such State
with respect to place or places of business situated within its territory.
Thus, a dealer has to register only with sales tax authorities where he has ‘place of business’.
For example:
Places of Business Appropriate State
1. Allahbad, Kanpur, Varanasi and Lucknow Uttar Pradesh
2. Allahbad and Varanasi, Bhopal and Katni for Allahabad & Varanasi would be Uttar Pradesh
and for Bhopal and Katni would be M.P.
Importance of Appropriate State:
The administration, levy and collection of tax has been delegated to the state, although it is a
Central Act.
The provisions regarding returns, appeals, penalties, etc. are dealt with by the appropriate state.
The tax payable by a dealer depends on the rates applicable to the sale or purchase of goods in
the appropriate state.
Registration is carried out in the appropriate state.
The authority to assess, reassess, collect and enforce the payment is entrusted to the officers of
the appropriate state.
(b) Business [Sec.2 (aa)]
Section 2 (aa) of CST Act defines that ‘business’ includes
(i) any trade, commerce or manufacture, or any adventure or concern in the nature of trade,
commerce or manufacture, whether or not such trade commerce, manufacture, adventure or
concern is carried on with a motive to make gains or profit and whether or not any gains or
profit accrues from such trade, commerce, manufacture, adventure or concern; and
(ii) any transaction in connection with or incidental or ancillary to, such trade, commerce,
manufacture, adventure or concern.
Note:
Thus, as per this definition, profit motive is immaterial. Business includes ‘Adventure’,
occasional transactions will also be covered. Adventure implies some ‘speculation’. Incidental
or ancillary business is also covered e.g. sale of used fixed assets, sale of scrap, sale of old
machinery & old furniture etc. is taxable, though normally the dealer may not be in business of
selling fixed assets, furniture or machinery e.g. Central Excise Authorities selling the goods
confiscated by them are liable to pay sales tax.
(c) Crossing the Custom Frontiers of India [Sec. 2 (ab)]
Section 2 (ab) of CST Act states that crossing ‘Customs Frontiers’ of India means crossing the
limits of the area of a customs station in which imported goods or exported goods are ordinarily
kept before clearance by customs authorities. Customs Station and Customs Authorities have
same meaning as per Customs Act.
Customs Station means customs port (for vessels), customs airport (for Aircrafts) or land
customs station (for trucks or motor vehicles). Central Government is authorized to specify such
places. Within such customs port, Customs area is specified by Customs Authorities where
imported goods or export goods are ordinarily kept by customs authorities.
(d) Dealer [Sec. 2 (b)]
Section 2(b) defines that “dealer” means any person who carries on (whether regularly or
otherwise) the business of buying, selling, supplying or distribution of goods, directly or indirectly,
for cash, or for deferred payment, or for valuable consideration, and includes
(i) a local authority, a body corporate, a company, any co-operative society, club, firm, Hindu
Undivided Family or other association of persons which carries on such business
(ii) a factor, broker, commission agent, del- credere agent, or any other mercantile agent, by
whatever name called, whether the same description as herein-before mentioned or not,
who carries on the business of buying, selling, supplying, or distribution, goods belonging
to any principal whether disclosed or not and
(iii) an auctioneer who carries on the business of selling or auctioning goods belonging to any
principal, whether disclosed or not and whether the offer of the intending purchaser is
accepted by him or by the principal or a nominee of principal and
(iv) Any government which whether or not in course of business, buys or sells, supplies or
distributes goods for cash or for deferred payment or for commission, remuneration or
other valuable consideration is deemed to be a dealer.
However, in relation to any sale, supply or distribution of surplus, un-serviceable or old
stores or materials or waste products or obsolete or discarded machinery or part of
accessories, thereof, the government shall not be deemed to be a dealer under this Act.
(3) Following are not dealers:-
(a) a tailor; (b) a dry cleaner; (c) a doctor who treats a patient; (d) ornament maker who is
contractor for work and labour; (e) a photographer; (f) a painter; (g) a sculptor; (h) an
advertising (i) an artist who creates a work of art for reward (j) a newspaper publisher (k) a
radiologist.
Note: If the damaged goods of insurer are possessed by insurance company under the
‘doctrine of Subrogation; which is sold by the insurance company later on, than the
insurance company shall be treated as dealer.
(e) Declared Goods [Sec. 2(c)]
Section 2(c) of CST Act defines Declared Goods as those declared under Section 14 of CST Act
as goods of special importance in inter-state Trade or Commerce. Section 14 of CST Act gives
a list of such goods and section 15 specifies restrictions on power of States to tax such goods.
U/s 14, the following goods have been declared as goods of special importance in inter state
trade or commerce.
(1) Coals and coke in all forms (excluding charcoal.)
(2) Cotton in unmanufactured form but not cotton waste.
(3) Manmade fabrics___ fabrics of manmade filament yarn i.e. artificial textile material,
polyester filament yarn, staple fibres, polyester staple fibre tyre card, fabric, impregnated
textile fabrics etc.
(4) Cotton fabrics, cotton yarn (excluding cotton yarn waste).
(5) Hides and skins (Raw or cleaned)
(6) Iron and steel
(7) Jute – whether baled or otherwise
(8) Oilseeds
(9) Sugar and Khandsari sugar
(10) Unmanufactured tobacco, cigars, cigarettes, biris, chewing tobacco, snuff etc.
(11) Cereals i.e. paddy, rice, wheat, bajra, jowar, barley, maize, ragi, kolon, kutki etc.
(12) Crude oil i.e. crude petroleum oil and crude oil obtained from bituminous minerals
(13) Pulses i.e. gram, tur, masur, moong, urad, arhar, moth, khesari etc.
(14) Woven fabrics of wool.
(15) Aviation Turbine fuel sold to a Turbo Prop Aircraft.
Note:
(1) Under Section 15, there are some restriction and conditions in regard to taxation of declared
goods.
(2) The Tax payable on the sale or purchase of declared goods inside the state shall not exceed
4%.
(3) Tax shall not be levied at more than one stage in case of declared goods.
(4) The dealer shall be entitled to refund of tax, if the following conditions are satisfied.
(a) Tax has been paid at the time of sale or purchase to a state government of the declared
goods.
(b) Afterwards, all above goods are sold in the course of interstate trade or commerce.
(c) Tax has been paid on such goods under CST . Act.
(d) The dealer is fulfilling the conditions with regard to refund in the State Act.
(e) The refund shall be granted to the dealer who sells the goods in the course of Inter-State
trade commerce.
(f) The dealer who has paid tax to the state government shall not be entitled to claim refund.
(f) Goods [Sec. 2 (d)]:
Section 2 (d) of CST Act defines that ‘goods’ includes all materials, articles, commodities and all
kinds of movable property,
but does not include newspapers, actionable claims, stocks, Shares and securities.
Goods must be movable. CST cannot be levied on immovable property.
(1) Following are the instances of goods for C.S.T. Act:
(a) Electricity; (b) Copy right; (c) Patent; (d) Lottery ticket; (e) Readymade computer
software; (f) Advance REP license; (g) growing crops, grass, standing tress on the land, if
these have been served from the land, they shall become goods; (h) Air or water, if there are
made available to customers or consumers at cost (i) Old Newspaper if sold as waste.
(2) Following are the instances of not-goods (since these items has been specially excluded from
the meaning of goods for CST Act )
(a) Share; (b) securities like debentures; (c) Money; (d) Stocks; (e) Newspapers;
(f) Actionable claims; (g) Growing crops, grass, standing trees on the land.
Note: Actionable claims means which can be recovered through civil court.
(g) Place of Business [Sec. 2(dd)]
Section 2(dd) of CST Act defines that ‘Place of Business’ includes
(i) place of business of agent where dealer carries on business through an agent
(ii) warehouse, godown or other place where a dealer stores his goods
(iii) place where a dealer keeps his books of account. This is an ‘inclusive definition’ i.e.
other places of business e.g. where dealer has a shop factory is obviously covered.
A dealer can be have more than one ‘places of business’ within one State or even
within one city.
If he has ‘places of business’ in different States, he will have to register in each such State.
(h) Registered Dealer
It means a dealer who is registered under Section 7 of this Act. No dealer can make an Inter
State Sale unless he is registered under CST Act.
(i) Sales [Sec. 2(g)]
Section 2 (g) defines that Sale with its grammatical variations and cognate expressions, means
any transfer of property in goods by one person to another for cash or for deferred payment or
for any other valuable consideration, and includes a transfer of goods on hire-purchase or other
system of payment by installments, but does not include a mortgage or hypothecation or a
charge or pledge on goods.
Essential elements of sale are
(1) there must be transfer of goods;
(2) general property in the goods should be transferred to buyer from seller;
(3) consideration i.e. price must be paid or agreed to be paid;
(4) there must be two parties – buyer &seller;
(5) valid mutual consent of both parties is essential.
Deemed Sale [ Sec.2(g) (i), (ii), (iii), (iv), (v) and (vi)]
i. Transfer of property in goods for Cash, Deferred Payment or Other Valuable Consideration;
ii. Transfer of Property in goods (whether as goods or in some other form) involved in the execution of
Works Contract;
iii. Delivery of goods on Hire Purchase or under Instalment System;
iv. Transfer of right to use any goods for any purpose(whether or not for a specified period) for cash,
deferred payment or other valuable consideration;
v. Supply of goods by any unincorporated association or body of persons to a member thereof for
cash, deferred payment or other valuable consideration;
vi. Supply, by way of any service, of goods, being food or any other article for human consumption or
any drink(whether or not intoxication), where such supply or service, is for cash, deferred payment
or other valuable consideration.
Notes:
· ‘Hire-purchase’ is also included in the definition of ‘sale’.
· Sales tax cannot be levied on the full value of Works Contract but only on value of goods actually
transferred in execution of works contract.
· Incidence of tax only when property in goods is transferred and property is
transferred only when goods are ascertained. No Tax till the goods remain un ascertained.
· CST is payable even if there is compulsory transfer under Government orders,
if goods are a controlled commodity.
· Sale of illegal goods are also liable to sales tax.
· Sales include Barter.
There are some transactions which are not sales:
(a) Charge/mortgage/hypothecation etc.
(b) Leasing
(c) Job work/processing
(d) Consignment/depot transfer/branch transfer
(e) Work contract.
(j) Sales Price [Sec. 2 (h)]
Section 2(h) states that, ‘Sale Price’ means the amount payable to dealer as consideration for the sale of
any goods.
Sale price inclusive of CST: The ‘sale price’ is total consideration received and is taken as inclusive
of CST, whether or not it is shown separately in Bill (Invoice). Invoice can be prepared (a) by showing sales
tax separately in invoice, or (b) by not showing it separately-in which case will be cum-tax price i.e. price
inclusive of CST. In either case, ‘Sale Price’ will be the total amount received by the seller i.e. inclusive of
sales tax.
Sale Price is inclusive of following:
(a) Central Sales Tax- whether or not shown separately in invoice;
(b) excise duty-Sales tax is payable on excise duty whether or not shown separately in invoice and even if
paid directly by purchaser;
(c) cost of packing material;
(d) packing charges –i.e. labour charges for packing goods;
(e) bonus discount or incentive bonus for additional sales effected by the distributor/dealer
(f) insurance charges –if incurred by seller as per contract for F.O.R. delivery of goods:
(g) cost of freight if not separately charged in invoice (borne by seller);
(h) design charges charged separately in respect of the goods manufactured as per design and sold to
buyer is includible for purpose of sales tax;
(i) Any sum charged for any thing done by the dealer in respect of goods at the time of or before delivery of
the goods.
Exclusions from sales price are:
(a) freight & transport charges for delivery of goods when freight transport charges are charged separately
in invoice(borne by buyer);
(b) cost of installation and commissioning – if shown separately in invoice(borne by buyer);
(c) cash discount for making timely payment;
(d) trade discount – deduction from list price to wholesaler/dealer.
(e) transit insurance charges incurred at the request by buyer;
(f) goods returned by buyers within six months;
(g) goods rejected by buyers;
(h)custom duty paid by buyer, if goods sold on C.I.F. basis and documents handed over to buyer for taking
delivery of goods from customs after paying customs duty directly to customs authorities.
Determination of Sale Price
Detail Rs Rs
Price (Inclusive of Excise andcustoms duty ) xxx
Less: (i) Trade Discount xxx
(ii) Off-Seasonal Discount xxx
(iii) Special Discount xxx
Add: Expenses incurred before or at the time of delivery of goods e.g. Packing expenses,
Weightment etc.
Less: Cash Discount
(l) Sale Tax Law[Sec.2(i)]
Section 2(i) of CST Act, defines ‘Sales Tax Law’ as any law for the time being in any state or part thereof ,
which provides for the levy of taxes on sale or purchase of goods generally or on any specified goods
expressly mentioned in that behalf.
Section 2(i) also defines ‘General Sales Tax Law’ as the law for the time being in force in any State or part
thereof, which provides for the levy of tax on the sale or purchase of goods generally.
Some States also have laws for levy of tax on specified commodities or specified transactions. Such law is
not ‘general sales tax aw’ of a state.
(m) turnover [Sec. 2(j) ]
It is defined under Section 2(j) as aggregate of the sales prices received and receivable by him in respect of
sales of any goods in the courts of Inter- State trade or commerce made during any prescribed period and
determined in accordance with provisions of Central Sales Tax & Rules.
How to calculate Tax Payable?
CST(Rs.) = xRate
+
Aggregate Sale Price inclusive of CST
Rate of CST
of CST
100
(n) Works Contract [Sec.2(ja)]
Goods Returned [Sec. 8A(b)]
Section8A(b) provides that if goods are returned by buyer within six months, its sales prices will be
deducted
From ‘aggregate sale price’, if satisfactory evidence is produced sales tax authority in respect of the same.
(o) Exemptions from CST
(a) The exemptions are: (a) subsequent sales by transfer of document
(b) sale of goods which are exempt/chargeable to lower tax if sold within the State;
(c) exemption by issuing a notification; (d) sales in course of import/export.
(p) Exemptions by Issuing Notification
State Government can grant exemption under Section 8(5) in respect of inter-state sales effected from the
state.
Such notification should be in
(1) Public interest;
(2) by way of notification in official Gazette;
(3) exemption may be subject to condition;
(4)The exemption may be (i) to any dealer for goods or classes of goods or (ii) in respect of all sales of
classes of goods by any class of dealers
(5) The exemption may be total or partial.
(V) Formulation of Principles for Determining when a Sale or Purchase Of Goods Takes Place in the
Course of Inter-State Trade or Commerce (Sec. 3)
Section 3 of CST Act defines Inter-State sale or purchase as follows: A sale or purchase of goods shall be
deemed To take place in the course of Inter-State trade or commerce if the sale or purchase (a) occasions
the movement of Goods from one State to another or (b) is effected by a transfer of documents of title to
the goods during their movement from one state to another. Thus, inter-State sale can be as per Section
3(a) or Section 3(b).
As per Section 3(a), ‘Inter-State sale’ takes place if the sale occasions movement of goods from one State
to another. In Commissioner of Sales Tax Vs. Suresh Chand Jain- (1988), it was held that a sale can be
said to be in the course of inter-state only if two conditions occurs viz. (i) sale of goods and (ii) a transport
of those goods from one State to another. The essential ingredients of Inter-State sale, as decided in
various Supreme Court decisions are as follows:
(i) Transaction must be a completed sale.
(ii) There should be an agreement to sale which contains a stipulation(express or implied) regarding
movement of goods from one State to another.
(iii) It is immaterial whether a completed sale precedes the movement of goods or follows the movement of
goods are in transit. What is important is that movement of goods and the sale must be inseparably
connected.
(iv) There should be physical movement of goods from one state to another. Such movement must be
inextricably connected with sale. The contract may not provide for movement of goods. It is enough if such
movement is result of covenant of sale or is incidental to the contract. It is sufficient if the movement of
goods is implicit in the sale.
(v) It is immaterial in which State the property (i.e. ownership) of goods passes to the buyer.
(vi) Sale need not precede the inter-State movement. Sale can be either before the movement or after the
movement.
(vii) There should be no break between purchase and movement of goods to another State. The words
“occasion movement of goods” from one State to another are most important words in the section & are
subject matter of lot of litigation. The legal position is more or less settled through various judgements of
Supreme Court. The basis requirements are already enumerated above.
Sunday, October 21, 2012
B.Com class Types of miscellaneous insurance
Miscellaneous Insurance
The various Policies under it are as follows:
All Risk Insurance
Burglary Insurance Policy
Cash in Transit Insurance
Fidelity Guarantee Insurance Policy
Householder's Insurance
Shopkeeper's Insurance
Television Insurance
Special Contingency Insurance
Suhana Safar Insurance
Baggage Insurance
Plate Glass Insurance
Jeweller's Block Insurance
All Risk Insurance
SUBJECT MATTER COVERED:
The policy is specially suitable for covering Jewellery, Valuables, Curios, Antiques and other Works of Art, Paintings, Watches, Cameras and other similar articles.
PROPERTY NOT COVERED:
Fountain pens, Spectacles, Musical Instruments, Cufflinks, Clothing, Cigarette Cases, Silver Utensils, Money, Securities, Manuscripts, Deeds, Bonds, Traveller’s Cheques, Books of Accounts etc.
INSURED PERILS:
Fire, Riot and Strike
Burglary, House Breaking, Larceny or Theft
Accidental Loss or Damage
EXCLUSIONS UNDER THE POLICIES:
Although these policies are known as All Risk Insurance Policies there are certain exclusions such as
Loss arising from Wear and Tear
Damages caused by the process of repairing renovation etc.
Breakage of Lens and Cameras unless caused by fire/ accident to the means of conveyance
Mechanical/ Electrical Breakdown
IMPORTANT CONSIDERATION:
Moral Hazard is a very pertinent factor and policies are issued only to known and valued clients. A moral hazard report should be obtained from the marketing official or the concerned u/w officer about his her personal knowledge of the client for a minimum period of three years.
RATING:
Non Tariff
The normal lowest rate for First Class Proposal is 1.50%.
If in special cases the geographical limits are to be extended world wide the rate should be atleast 2%.
The above rate includes Riot and Strike.
Burglary Insurance(Business Premises):
APPLICABILITY OF INSURANCE:
The policy is available to Commercial Establishments. Factories, Godowns, shops etc. Burglary Policy can be issued only where a fire policy is also availed.
PROPERTY COVERED UNDER THE POLICY:
Stock in trade
Goods held in trust or on commission for which the insured is responsible.
Fixtures, Fittings and Utensils in Trade.
Cash and Currency notes secured in locked safe.
EXCLUDED PROPERTIES:
The property excluded under the policy include deeds, bonds, bills of exchange, promissory notes, cash treasury and bank notes, cheques, security for money, stamps, stamp collections, books of account, documents of any kinds, manuscripts, medals and coins, motor vehicles and accessories or livestock unless specifically insured.
INSURED PERILS:
Burglary or Housebreaking of property, by actual forcible and violent entry.
Theft by a person in the premises who subsequently breaks out by a violent and forcible means.
Damage to the premises by the burglars to be made good by the insured.
EXCLUSIONS UNDER THE POLICY:
Loss or Damage
Where insured’s family member or business staff is involved as principal or accessory.
By act of persons lawfully on the premises(larceny)
Consequent upon fire or explosion.
Perils insurable under a fire or Plate glass insurance policy.
Loss of cash from the safe following the use of key or duplicate thereof unless such key is obtained by violence or threats of violence.
Earthquake and other natural perils.
Riot, Strike and civil commotion.
War and Nuclear Risks.
TYPES OF POLICIES:
Declaration policy may be issued as in Fire Department
Floater policy on the basis of provision of the fire tariff may be issued.
First Loss policy may be issued for property except cash and/ or valuables where total loss is impossible.
Full value policy is the most common type of policy issued.
Cash In Transit Policy:
SCOPE OF COVER:
Loss of Money in Transit by the insured or insured’s authorized employees occasioned by Robbery. Theft or any other fortitude cause.
Loss of Money by Burglary, House-breaking, Robbery or Hold up whilst money is retained at insured’s premises in safe or strong room.
DEFINITION OF MONEY:
It shall include cash, bank draft, currency notes, treasury notes, cheques, postal orders and current postage stamps.
IMPORTANT CONSIDERATION:
The insured should indicate the address of the premises where cash is kept and also the Limits under each or the following situations.
Section 1:
Money for payment of wages or petty cash in transit from bank to office premises and cheques drawn by the insured for the above purposes from premises to bank.
Money for other purposes in transit between premises and bank.
Money other than above collected and in personal custody of the insured/ his employees in transit to the premises or bank within 48 hours time.
Section II:
Money kept in premises during business hours and whilst kept in licked safe or strong room after business hours against burglary, house breaking or hold up.
MAJOR EXCLUSIONS:
The Company shall not be liable in respect of:
Shortage due to error or omission.
Loss of money entrusted to any person other than the insured or an authorized employee of the insured.
Loss of money where the insured or his employee is involved as Principal accessory, except loss due to fraud or dishonesty of the cash carrying employee of the insured occurring whilst in transit and discovered within 48 hours.
Loss occurring on the premises, after business hours, unless the money is in a locked safe or strong room.
Loss occasioned by Riot and Strike and Terrorism (can be covered on payment of additional premium).
Money carried under contract of affrightment and theft of money from unattended vehicle.
Loss of money from safe or strong room following use of the key to the safe or strong room or any duplicate thereof belonging to the insured. Unless this has been obtained by threat or by violence.
RATING:
Section-I
Normally 0.35 per mile may be charged on ordinary risk in good locality. In case of remote, isolated places the rate may be charged upto 0-.50 per mile.
Section-II
0.25% to 0.50% depending upon risk perception.
Fidelity Guarantee Insurance Policy:
APPLICABILITY OF INSURANCE:
This insurance indemnifies the employers against
the financial loss suffered by them due to fraud, dishonesty during the course of employment of an employee or employees subject to the following conditions:
The cover granted is against the direct pecuniary loss and not a consequential one.
The loss should be in respect of monies or goods of the insured.
The act should be committed in the course of the duties specified.
If the employee guaranteed under the policy had left the services of the employer and was re-engaged by him, no liability attaches to the policy unless the consent of the insurers was obtained.
THE PERIOD OF DISCOVERY:
If the policy is not renewed or if the policy is canceled, losses must be discovered within 12 months from the date of expiry or cancellation of the policy.
Company is not liable for losses not sustained within a retroactive period not exceeding 2 years from the date of discovery.
EXCLUSIONS:
This insurance policy does not cover any loss:
Discovered more than 12 months after the death/ dismissal/ retirement of the employee concerned.
When there has been any change in the agreed system of check or accounting precautions, without the insurer’s prior consent.
Caused by an employee after discovery of his previous fraud or dishonesty.
Such as stock taking shortages, trading losses, not caused by fraud or dishonesty.
IMPORTANT CONSIDERATION:
The following particulars regarding the person to be guaranteed should be satisfactory:
Character
Financial position
Domestic Responsibility.
Previous experience
Previous record or service
Amount guaranteed in relation to remuneration
TYPES OF POLICIES:
COMMERCIAL FIDELITY GUARANTEE:
Individual Policy: Only one named individual is covered.
Collective policy: List of employees may be furnished. Each individual may have his respective guarantee amount shown against his/ her name. Advantage of this policy is that any change can be incorporated by just putting an endorsement.
Floater policy: Here list of employees may be furnished by individual guarantee amount is not mentioned. The guarantee amount is floated and can be pegged to any individual in the list upto the maximum limit mentioned in the policy. The policy is helpful for those employers who because of the functional intricacies may not be able to quantify loss in respect of each act of fraud or dishonesty by individual employees.
NOTE:
Floater cover should not be granted for persons numbering less than 5 in case of cover for unnamed persons, all persons without exception should be included. Sub-limits may be stipulated for each category of employees taking into account their functions and maximum amount handled by them.
Position policy: Guarantee amount shown against each position and no name is mentioned.
Blanket policy: Given to establishment with a wide network of staff. Just, a blanket amount for the total number of employees.
PROPOSAL FORM:
Normally for commercial fidelity guarantee policy there are two proposal forms viz., one given by the3 employer and another given by the employee.
HAZARDOUS RISK:
The collection agents whose cash limits are higher than his salary, such as jewelery and traveling salesman, cashiers in hotels, cinema halls, estate agents, treasurer in socio-cultural organization and employees of billion merchants are treated as hazardous risks under these policies.
House Holder’s Insurance:
APPLICABILITY:
This is a comprehensive package insurance scheme, meant for house holders, by combining a number of contingencies under single policy.
This policy comprises of 10 sections. They are as follows.
Fire and Allied perils (including earthquake, loss of or damage to building/ contents excluding money and valuables).
Burglary/ Housebreaking including larceny or theft: Loss of or damage to contents excluding money and valuables.
All risks: Loss of damage to jewelery or valuables caused by accident or misfortune whilst any where in India.
Plate Glass: Loss of or damage to fixed plate glass by accidental means.
Breakdown of domestic appliances: Unforeseen and sudden physical damage caused by mechanical or electrical breakdown of domestic, electrical, electronic or mechanical appliances specified in the policy and whilst contained in the insured premises.
Television Set: Loss of or damage to television apparatus including V.C.R/ V.C.P whilst contained in the insured’s premises.
Pedal Cycles: Loss of or damage to pedal cycles, and legal liability to third parties.
Baggage Insurance: Loss of or damage to personal baggage dud to accident or misfortune whilst traveling any where in India.
Personal Accident: Personal Accident Insurance for insured, his spouse and children as per personal accident insurance guidelines.
Public Liability: Legal liability of the insured in respect of accidental death or bodily injury to third party through fault or negligence of the insured/ family members. Legal liability as per W.C. Act/ Common Law towards employees.
ShopKeeper’s Insurance:
APPLICABILITY:
This is a comprehensive package insurance scheme meant for small shopkeepers whose property is valued at less than Rs. 10,00,000/-. It contains eleven sections. Maximum four sections will have to be taken in which section 1 and 2 are compulsory.
COVERAGE UNDER POLICY:
Fire and Allied perils: Loss of or damage to building/ contents (excluding money and valuables) Whilst contained in the insured’s premises.
Building
Contents
Burglary/ Housebreaking: Loss of or damage to contents (excluding money and valuables) whilst contained in the premises.
Money Insurance:
Loss of money in transit due to accident/ misfortune (Not exceeding Rs. 50,000/- per any one carrying).
Loss of or damage to money, valuables whilst contained in a burglar-proof safe (2% of the sum insured under Section or Rs. 10,000/- whichever is less)
Loss of money whilst lying in cashiers till and counter (1% of the sum insured under Section 1 or Rs. 5,000/- whichever is less).
Pedal cycles: Loss of or damage to pedal cycles and legal liability to third parties.
Plate Glass: Loss of or damage to fixed plate glass by accidental means.
Neon and Glow sign: Loss of or damage to Non Sign or Glow Sign by accidental external means/ Fire, lightning or external explosion/ Theft/ Riot, Strike, malicious Act.
Baggage Insurance: Loss of or damage to personal baggage of insured or baggage in connection with trade anywhere in India.
Personal Accident: Personal Accident insurance for insured/ his employees as per PA Policy
Fidelity guarantee: Direct pecuniary loss suffered by the insured due to fraud or dishonesty committed by any salaried employee excluding sales man and commission agents.
Public Liability: Legal liability in respect of accidental death or bodily injury to a third party or accidental damage to their property during performance of business.
Business Interruption: Due to operation of perils covered under Section I and subject to claim payable there under.
Television Insurance:
The Television insurance policy is designed to indemnify the insured against:
Loss of or damage to the Television apparatus by
Accidental external means
Fire. Lighting
Short circuiting
Flood and Storm
Bursting and overflowing of water tanks
Theft
Riot and Strike
Earthquake, fire and shock
Legal Liability to third party for accidental bodily injury/ damage to property arising out of the use of TV installation. Rs. 25,000/- for all claims out of one event.
IMPORTANT EXCLUSIONS:
The company will not pay first Rs. 150/- of any claim due to electrical causes or self-heating.
Damage to cathode ray tubes.
Burning out of valves or coils.
Theft of parts unless the apparatus is also stolen at the same time.
Special Contingency Insurance:
APPLICABILITY:
This policy covers loss against accidental external means, fire, external explosions, self ignition, lightning, burglary, housebreaking, theft and malicious act whilst the property is situated at a designated place.
EXCLUSIONS:
Mechanical or electrical breakdown
SPECIAL FEATURES:
Suggested rate is 2.5%
Whenever items are governed by tariff rates but covered under special contingency policy, it is to be ensured that tariff rates and excess are applied in respect of such items and no violations made in this regard.
INSURANCE FOR LAP-TOP COMPUTERS:
Laptop computers can be covered under special contingency policy on the lines of electronic equipments policy which also covers electrical or mechanical breakdown. However the rate charged for Lap-Top computers would be between Rs. 1.25% to 1.50%.
Suhana Sufur Insurance:
"PACKAGE INSURANCE COVER FOR DOMESTIC TRAVELERS"
SCOPE OF COVER:
The object of this insurance is to provide relief in case of accidental death and loss and/ or damage to accompanied baggage during traveling within the country as follows:
Rs. 1 lac per head irrespective of age and income, under Table I and Table II of PA policy.
Reasonable and actual emergency incidental expenses upto Rs. 1000/- per head arising out of an accident resulting in a valid claim under PA section.
Loss or damage to accompanied baggage arising out of fire, storm, tempest, hurricane, flood, inundation, riot, strike, malicious damage, accident, theft or burglary.
TABLE OF BENEFIT UNDER BAGGAGE:No. of persons 1 2 3 4 and above
Sum Insured (Rs.) 5000 10,000 12,500 15,000
SPECIAL PROVISION:
1.Cover is available to travelers by all modes. Road/ Rail/ Water and Air including those who travel by their own mode of transport.
2.Cover is valid for transit period subject to maximum of 60 days. The cover includes incidental local travel also.
Baggage Insurance:
SCOPE OF COVER:
This policy provides cover against loss/ damage to accompanied personal baggage of the insured due to FIRE, THEFT OR ACCIDENT during the course of the journey.
IMPORTANT EXCLUSIONS:
LOSS/ damage by wear and tear, moth, mildew, vermin.
Any process of cleaning, repairing etc.
Breakage of glass articles, china clay and articles of brittle nature.
Theft from unattended vehicles
Electrical and Mechanical breakdown
Loss or damage to articles while being worn or in actual use
Terrorism
SPECIAL CONDITIONS:
Articles in Pairs or Sets.
Single Article limit.
UNDERWRITING GUIDELINES:
The geographical limit to the above policy is ‘worldwide’.
The items covered to be specified with individual values. Valuation report shall be obtained for valuables like Diamond/ precious stones etc.
Non –Tariff business.
Guideline rate 0.75% - 5% based on clientele relationship/ other premium income etc.
Plate Glass Insurance:
SCOPE OF COVER:
The policy covers loss/ damage to fixed glass (Display windows, show cases etc) by breakage due to accidental causes.
IMPORTANT EXCLUSIONS:
Fire/ Explosion, Riot and Strike, terrorism.
Typhoon, Flood, Hurricane, Volcanic eruption, Earthquake and other convulsions of nature.
Damage to frame/ framework or any description.
Cost of lettering or painting.
DECLINED RISKS:
Bad localities, Empty shops, green house conservatories, unprotected glass at high levels.
Broken or cracked glass, movable mirrors.
RATE:
Rate is to the fixed depending on the merit of each individual proposal taking into consideration localities, risk involved, precautionary measures and previous claims experience etc.
SUGGESTED RATE: Between 4% and 6%.
Jeweler’s Block Insurance:
SECTION 1:
Loss/ damage to property (Gold, Silver items, Pearl, Precious stones etc.) insured whilst contained in the premises or deposited with a bank:-
Property insured on the premises
Property insured in display windows.
Cash and Currency notes.
Property Insured in Bank Lockers subject to the insured maintaining a separate register to record all deposits/ withdrawals in such lockers.
Perils Covered: Fire, Explosion, Lightning, Riot and Strike, Malicious Damage, Burglary, House Breaking, Theft, Robbery and Hold-up risk only.
SECTION 2: ALL RISKS COVER
Property insured excluding Cash and Currency Notes whilst in the custody of the Insured, his partners, Directors duly constituted Attorneys, his employees or sorters of diamonds.
Property Insured excluding Cash and currency Notes whilst in the custody of persons not in regular employment of the insured such as brokers or agents or cutters or goldsmiths.
SECTION 3: TRANSIT COVER ALL RISKS
Property excluding cash and currency notes whilst in transit within India by
Registered insured Parcel Post.
AIR Freight (Minimum 20% of value to be declared to the Airlines).
Angadias.
SECTION 4:
Office furniture and fittings against the perils mentioned in Section 1.Damage done by burglars and/ or thieves to the premises and/ or landlord’s fixtures and fitting for which insured is legally responsible as tenant upto 1% of SI under this section.
IMPORTANT EXCLUSIONS:
Loss or damage to the property insured due to:
Whilst it is being worked upon or during cleaning, repairing etc.
Inventory losses.
Whilst at any Public Exhibition.
Theft or dishonesty of the insured’s family members, servants employees, customer, broker, angadias, cutters, goldsmiths in respect of the property entrusted to them by insured.
Whilst in window display at night or whilst kept out of safes after business hours.
Any loss following use of key of duplicate key belonging to the insured unless it has been obtained by threat or violence.
EQ, Volcanic eruptions, flood, storm etc.
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