That fixed home loan rate is really not fixed. When interest rates were falling, several borrowers discovered that lending rates did not always come down. Now when rates are rising, fixed rate borrowers discovering that not all fixed rates loans are really fixed. Six years ago, a Thiruvananthapuram couple had availed of a Rs 7 lakh home loan at what they believed was a fixed interest... Read more

As much as 55% of Indian savings find their way to bank fixed deposits. Over the past one year, fixed deposit interest rates from nationalized banks have gone down from 8-9% to around 6-6.5% now for a period of 1-3 years. With fixed deposit rates from banks coming down, investors seeking higher returns from fixed income products are investing in company fixed deposits. Company fixed deposits work for investors seeking assured... Read more

As frontline shares struggle for direction and the spectacular rise in second-line shares begin to look unsustainable, corporate fixed deposits (FDs) seem to be finding more takers among retail investors. Brokers and investment advisors are recommending corporate FDs to their clients seeking returns higher than a bank fixed deposit, but who lack the stomach for risk associated with equities. Many companies are offering double-digit interest rates in some cases almost twice of... Read more

Many retailers use the performance indicators of gross margin % (after markdown) and weeks cover to measure performance. While the Gross margin% is a measure of relative profitability without taking into account the cost of stockholding investment, week’s cover tells us how effectively the stock turned, without informing us about relative profitability. What is needed is a measure that combines these two indicators into an indicator of real profitability. GMROI does... Read more

In the year 1945, a duty was levied on Cigarettes in addition to the existing duty on Tobacco, excise duty was imposed afresh on Mill made Cotton cloth in 1949, which was earlier withdrawn in 1924-25. Cements, Footwear, rayon and Art silk fabrics and Soap made in power operated factories were added to the tariff in 1954 and in 1955. Excise duties were imposed on Woolen fabrics, Electric lighting bulbs, Electric... Read more

A thorny issue in e-commerce concerns the collection of taxes. A typical tax system relies on knowing where a particular economic activity is located. But the Internet enables individual workers to operate in many different countries while sitting at the same desk. When taxes should be collected, where they should be collected, and by whom are all issues under consideration by countries around the world. In the past a company was deemed to have... Read more

In fact, the duties of Excise were know to the human being, since ancient times, dating back to the 6th Century B.C and are found mentioned in the Roman Law as “Vectiqual rerum vanalium” (which means toll levied on commodities sold by auction, or in public market).... Read more

The Central Excise duty is an indirect tax levied on the goods manufactured in India, except Alcohol, which is under State List. In 2000, instead of making payments before each clearance of the goods the fortnightly payment of the duty system was introduced for all commodities. The system of the monthly payment was introduced the... Read more

The purpose of the business is to maximize profits and therefore, pricing of products would have to be done carefully to ensure that the same can be achieved. Other pricing objectives could be to help achieve the targeted sales, to maintain or enhance market share or to meet or prevent competition. Prices could be set at a level that reflects the average industry price, with small adjustments made for unique features... Read more

A Framework by Ministry of Commerce, Department of Industrial Policy and promotion, (Jan 2008)* Setting up of a company: The principal forms of business organizations in India are: 1) Companies – both public and private 2) Partnerships 3) Sole proprietorship Companies incorporated in India and branches of foreign corporations are regulated by the Companies Act 1956 (the Act). The Act, which has... Read more