Frequently Asked Questions

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How does VAT affect the export trade?

What is the difference between Copyright & Patent?

Can trade shows and events be insured?

What are the factors that lead to effective marketing?

How to start online business?

How does VAT affect the export trade?

Once the business houses are registered in Value Added Tax (VAT), they have to charge VAT to their customers which is called the VAT Output. The business houses have to pay VAT on purchase also which they can set off with the VAT Paddle, or it is called VAT Output.

Say if a business house make sales of Rs.100, 000, it has to pay VAT @ 13 %, i.e., Rs.13,000. If it has made purchase only to Rs. 80,000, the VAT paid on purchase can be set off on the VAT payable.

 VAT Output (100000 * 13 %)         = 13000
Less: VAT Input (80000 * 13 %)      = 10400
 VAT Payable:                               =   2600
 
If the sale is Export: No VAT should be paid, i.e. there will be no VAT Output. The VAT Input as illustrated above can be refunded from the government as per VAT Rule, Annex 10.

Hence, the VAT does not affect the cost of product, but consume some time to get refunded at VAT Output.

The items specified in Annex I at the VAT rule, need not be registered in VAT. Handicrafts items are one of them.

Courtesy: Sydrec, Content Partner, BizMantra

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What is the difference between Copyright & Patent?

The right of writer, poet, and artist towards his /her creation is called Copyright. It could not be reproduced or copied without consent of the creator.

The right to invention, discovery or formula discovered by a person or a group of person is called Patent. It cannot be rediscovered by others.

Courtesy: Sydrec, Content Partner, BizMantra

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Can trade shows and events be insured?

Trade shows can be insured and Fire Policy can be issued for that with additional coverages of Riot Strike Damage (RDS), Malcious Damage (MD), Sabotage and Terrrorism (ST). The rate charged will be as per the number of days the policy is required. Also the client has to disclose the value of the goods which is to be insured to the insurance company for the insurance.

Courtesy: Shikhar Insurance, Insurance Partner, BizMantra

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What are the factors that lead to effective marketing?

Understanding buyer needs are primary to any marketing effort. Earlier we have been interested in making the best product in terms of 'our' own quality and design and then make a pitch to 'sell' whereas the interest and the requirements of the buyers may be different.

To understand the buyers' need we will need to do some investigation / research to identify what are the possible products they may be interested in. Upon analysis we might land up with multiple requirements that needs to be catered to or multiple segments. We will surely wish that we can cover all segments but it may not be possible. Therefore we need to choose or target amongst the many segments that is available according to the availability of resources (money, material, machines and men) that we are capable of generating.

Once we know which segment to target then we need to 'position' ourselves or give ourselves an identity for the product we are selling. This is where 'branding' becomes important. Others may be selling the same product but we will need to differentiate our product from the competition by giving it a globally recognized name and position it in such a way that others will not be able to replicate it.

Communication programs must support the brand and the initiative that we are making in some form or the other after ensuring that the product and its packaging is done well, the price is right and the distribution channels are all set to move in single motion.

Care should be taken to ensure that the macro level factors are also taken into consideration such as the political situation, economic situation, legal and others.

Courtesy: Mr. Suman Shakya, Marketing Consultant, BizMantra

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