GST (Goods and Service Tax)

Goods & Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that will be levied on every value addition.

To understand this, we need to understand the concepts under this definition. Let us start with the term ‘Multi-stage’. Now, there are multiple steps an item goes through from manufacture or production to the final sale. Buying of raw materials is the first stage. The second stage is production or manufacture. Then, there is the warehousing of materials. Next, comes the sale of the product to the retailer. And in the final stage, the retailer sells you – the end consumer – the product, completing its life cycle.

Why is Goods and Services Tax so Important?

The introduction of Goods and Services Tax (GST) would be a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, it would mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated to be around 25%-30%. Introduction of GST would also make Indian products competitive in the domestic and international markets. Studies show that this would have a boosting impact on economic growth. Last but not the least, this tax, because of its transparent and self-policing character, would be easier to administer

How does GST work?

When Goods and Services Tax is implemented, there will be 3 kinds of applicable Goods and Services Taxes:

CGST: where the revenue will be collected by the central government

SGST: where the revenue will be collected by the state governments for intra-state sales

IGST: where the revenue will be collected by the central government for inter-state sales

In most cases, the tax structure under the new regime will be as follows:

Transaction	New Regime	Old Regime	Comments
Sale within the state	CGST + SGST	VAT + Central Excise/Service tax	Revenue will now be shared between the Centre and the State
Sale to another State	IGST	Central Sales Tax + Excise/Service Tax	There will only be one type of tax (central) now in case of inter-state sales.

Example

A dealer in Maharashtra sold goods to a consumer in Maharashtra worth Rs. 10,000. The Goods and Services Tax rate is 18% comprising CGST rate of 9% and SGST rate of 9%. In such cases the dealer collects Rs. 1800 and of this amount, Rs. 900 will go to the central government and Rs. 900 will go to the Maharashtra government.

Now, let us assume the dealer in Maharashtra had sold goods to a dealer in Gujarat worth Rs. 10,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of 9%. In such case the dealer has to charge Rs. 1800 as IGST. This IGST will go to the Centre. There will no longer be any need to pay CGST and SGST.

basic concept of knowledge

Knowledge Hierarchy:

types of knowledge:



• Tacit knowledge: That type of knowledge which people carry in their mind, and is, therefore, difficult to access.

• Explicit knowledge: That type of knowledge which has been or can be articulated, codified, and stored in certain media.

Features:

Why KM:

• To share the knowledge, a company creates exponential benefits from the knowledge as people learn from it.
• to build better sensitivity to "brain drain".
• to reacting to new business opportunities.

posted by
sudeep majumdar




 

four pillars of knowledge management

Here’s is a brief summary of the four pillars as they apply to the reality of KM implementation:

• Leadership

 Leadership develops business and operational strategies to survive and position for success in today’s dynamic environment. Those strategies determine vision, and must align knowledge management with business tactics to drive the value of KM throughout the enterprise. Focus must be placed on building executive support and KM champions. A successful implementation of a knowledge management system requires a champion or leader at or near the top of an organization who can provide the strong and dedicated leadership needed for cultural change.

• Organization

 The value of knowledge creation and collaboration should be intertwined throughout an enterprise. operational processes must align with the KM framework and strategy, including all performance metrics and objectives. while operational needs dictate organizational alignment, a KM system must be designed to facilitate KM throughout the organization. Operational processes must be aligned with the new vision while redesigning the organization and identifying key levers of change, including roles and responsibilities. Introducing knowledge management requires organizational change, and KM inevitably acts as a catalyst to transform the organization’s culture. The increasing value placed on highly capable people, rising job complexity and the universal availability of information on the Internet are fundamental changes contributing to the move by organizations to leverage KM solutions. In order to begin changing the organization, knowledge management must be integrated into business processes.

• Technology

 Technology enables and provides all of the infrastructure and tools to support KM within an enterprise. While cultural and organizational changes are vital to achieving a KM strategy, a lack of the proper tools and technology infrastructure can lead to failure. Any technical solution must add value to the process and achieve measurable improvements. Properly assessing and defining IT capabilities is essential, as is identifying and deploying best-of breed KM software and IT tools to match and align with the organization’s requirements. The Gartner Group defines 10technologies that collectively make up full-function KM. The functional requirements that enterprises can select and use to build a KM solution include:

• capture and store,;• search and retrieve,;• send critical information to individuals or groups,;• structure and navigate,;• share and collaborate,;• synthesize,;• profile and personalize,;• solve or recommend,;• integrate with business applications, and;• maintenance.; No technology product meets every requirement, and before selecting a solution, enterprises need to clearly define their KM strategy, scope and requirements, and perform product evaluations to identify technology products that effectively meet their needs.

• Learning

 The best tools and processes alone will not achieve a KM strategy. Ultimately, people are responsible for using the tools and performing the operations. Creating organizational behavior that supports a KM strategy will continue long after the system is established. Organizational learning must be addressed with approaches such as increasing internal communications, promoting cross-functional teams and creating a learning community. Learning is an integral part of knowledge management. In this context, learning can be described as the acquisition of knowledge or a skill through study, experience or instruction. Enterprises must recognize that people operate and communicate through learning that includes the social processes of collaborating, sharing knowledge and building on each other’s ideas. Managers must recognize that knowledge resides in people, and knowledge creation occurs in the process of social interaction and learning. It is evident that the need for knowledge management translates throughout the entire enterprise. It is not a separate function characterized by a separate KM department or a KM process; it must be embedded into all of the organization's business processes. Knowledge management is crucial to achieving permanent performance improvements and innovation. Efficient knowledge-intensive core processes and a fundamental architecture must be established to effectively initiate and implement KM. The four pillars clearly provide that necessary architecture.



posted by
vivek rajput

Differences between Business Intelligence and Knowledge Management

Differences between Business Intelligence and Knowledge Management

 

  Both KM and BI are used to support decision making .

 

 Both KM and BI use data to develop knowledge and this knowledge is applied to decision making. However, BI systems primarily use data to generate information which can be applied to generate knowledge and this knowledge is primarily developed as explicit knowledge. KM on the other hand, uses both data and information to develop knowledge and this knowledge is further developed to create new knowledge. The knowledge developed in KM applications consists of both tacit and explicit knowledge.

 

there also argued that BI is a component of KM. Looking at the knowledge management lifecycle of knowledge capture/creation, sharing, and application, we can consider BI applications used primarily in knowledge capture/creation activities. This means that we apply BI applications to capture or create information leading to knowledge but the knowledge sharing and application is outside of the scope of these systems. Whereas a KM system addresses the entire knowledge management lifecycle.

So, while both KM and BI systems are used to capture or create knowledge, KM systems address the entire lifecycle and result in tacit and explicit knowledge while BI systems are primarily used for knowledge capture and result in explicit knowledge.

  BY Deepak Kumar Rohal

Examples of Knowledge Application Systems

Knowledge Application Systems support the process through which some individuals utilize knowledge possessed by other individuals without actually acquiring, or learning, that knowledge.

Knowledge application technologies, which support direction and routines includes:

• expert systems
• decision support systems
• adviser systems
• fault diagnosis (or troubleshooting) systems
• help desk systems.

An expert system is software that attempts to provide an answer to a problem, or clarify uncertainties where normally one or more human experts would need to be consulted. Expert systems are most common in a specific problem domain, and is a traditional application and/or subfield of artificial intelligence. A wide variety of methods can be used to simulate the performance of the expert however common to most or all are 1) the creation of a knowledge base which uses some knowledge representation formalism to capture the subject matter expert's knowledge and 2) a process of gathering that knowledge from the subject matter expert's and codifying it according to the formalism, which is called knowledge engineering. Expert systems may or may not have learning components but a third common element is that once the system is developed it is proven by being placed in the same real world problem solving situation as the human subject matter expert, typically as an aid to human workers or a supplement to some information system.

A Decision Support System (DSS) is a class of information systems (including but not limited to computerized systems) that support business and organizational decision-making activities. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.Typical information that a decision support application might gather and present are:

• inventories of all of your current information assets (including legacy and relational data sources, cubes, data warehouses, and data marts),
• comparative sales figures between one week and the next,
• projected revenue figures based on new product sales assumptions.

Typical case-based knowledge application system will consist of the following processes: 

• Search the case library for similar cases.
• Select and retrieve the most similar case(s).
• Adapt the solution for the most similar case.
• Apply the generated solution and obtain feedback.
• Add the newly solved problem to the case library.

STOCK MARKET

A stock market, equity market or share market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately.

SIZE OF THE MARKET:-

Stocks can also be categorized in various ways. One common way is by the country where the company is domiciled. For example, Nestle and Novartis are domiciled in Switzerland, so they may be considered as part of the swiss stock market, although their stock may also be traded at exchanges in other countries.

At the close of 2012, the size of the world stock market (total market capitalization) was about US$55 trillion. By country, the largest market was the United States (about 34%), followed by Japan (about 6%) and the United Kingdom (about 6%). This went up more in 2013.

There are a total of 60 stock exchanges in the world with a total market capitalization of $69 trillion. Of these there are 16 exchanges that have a market capitalization of $1 trillion each and they account for 87% of global market capitalization. Apart from the Australian Securities Exchange, all of these 16 exchanges are divided between three continents: North America, Europe and Asia.

Overview of the Industry

In general, the financial market divided into two parts, Money market and capital market.

Introduction to the Money & Capital Market:-

The money market is used by participants as a means for borrowing and lending in the short term, from several days to just under a year. There a several money market instruments including treasury bills, Bills of exchanges, deposits, Certificates of Deposit, federal funds.

The capital market is the market for securities, where Companies & governments can raise long-term funds. It is a market in which money is lent for periods longer than a year. A nation's capital market includes such financial institutions as banks, insurance companies, & stock exchanges that channel long-term investment funds to commercial & industrial borrowers. Unlike the money market, on which lending is ordinarily short term, the capital market typically finances fixed investments like those in buildings & machinery.

The capital market consists of number of individuals & institutions (including the government) that canalize the supply & demand for long term capital & claims on capital. The stock exchange, commercial banks, co-operative banks, saving banks, development banks, insurance companies, investment trust or companies, etc., are important constituents of the capital markets.

The capital market, like the money market, has three important Components, namely the suppliers of loan able funds, the borrowers & the Intermediaries who deal with the leaders on the one hand & the Borrowers on the other.

Introduction to the Stock Market:-

The stock market is one of the most important sources for companies to raise money. This allows businesses to be publicly traded, or raise additional capital for expansion by selling shares of ownership of the company in a public market. The liquidity that an exchange provides affords investors the ability to quickly & easily sell securities. This is an attractive feature of investing in stocks, compared to other less liquid investments such as real estate, Fixed Deposit (FD), Saving A/c.

History has shown that the price of shares & other assets is an important part of the dynamics of economic activity. An economy where the stock market is on the rise is considered to be an up-and-coming economy. In fact, the stock market is often considered the primary indicator of a country's economic strength & development. Rising share prices, for instance, tend to be associated with increased business investment & vice versa. Share prices also affect the wealth of households & their consumption. Therefore, central banks tend to keep an eye on the control & behaviour of the stock market &, in general, on the smooth operation of financial system functions.

Do you know that the world's foremost marketplace New York Stock Exchange (NYSE), started its trading under a tree (now known as 68 Wall Street) over 200 years ago?

Similarly, India's premier stock exchange Bombay Stock Exchange (BSE) can also trace back its origin to as far as 130 years when it started as a voluntary non-profit making association.

Shares in the stock market are either traded through:-

Stock Exchange:-

A stock exchange is a place or organization by which stock traders (people and companies) can trade stocks. Companies may want to get their stock listed on a stock exchange. Other stocks may be traded "over the counter" (otc), that is, through a dealer. A large company will usually have its stock listed on many exchanges across the world.

Exchanges may also cover other types of security such as fixed interest securities or interest derivatives.

Over the Counter (OTC):- these are not centralized exchanges & the trade take place through a network dealers.

Two Major Stock Exchanges are:-

·         NSE (National Stock Exchange)

·         BSE (Bombay Stock Exchange)

1) The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Kala Ghoda, Mumbai, Maharashtra, India. Established in 1875, the BSE is Asia’s first stock exchange and the world's fastest stock exchange with a median trade speed of 6 microseconds.

2) India's other major stock exchange National Stock Exchange (NSE), promoted by leading financial institutions, and was established in April 1992. NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system which offered easy trading facility to the investors spread across the length and breadth of the country.

Securities market is an important, organized capital market where transaction of capital is facilitated by means of direct financing using securities as a commodity. Securities market can be divided into a primary market and secondary market.

The primary market deals with newly issued securities & is responsible for generating new long-term capital. The secondary market handles the trading of previously-issued securities, & must remain highly liquid in nature because most of the securities are sold by investors.

Panic button in mobile phones from January 1

A division bench of Justice B.D. Ahmed and Justice Ashutosh Kumar was informed by the Delhi Police that it has also planned to do away with all existing emergency number such as 100, 101, 102 and 108 and introduce a single emergency number 112.

For a period of one year, all existing emergency numbers will be treated as secondary numbers and will be re-routed to 100, till the 112 number is implemented.

Delhi Police, in its affidavit, also said that they were carrying out a comparative study of response time of other police forces in major metropolitan cities across the world to evolve a strategy to deal with the situation.

During the hearing, Delhi State Legal Service Authority Member Secretary Dharmesh Sharma termed as "unsavoury" the manner in which police stored the biological or chemical samples from crime scenes in the police station`s malkhanas.

The court had asked Sharma to carry out an inspection across the police stations in Delhi to check the ground reality with regard to the manner and procedure adopted by police during the crime investigation process.

BY SANJAY KHAN