Groups And Group Development Commerce Essay

Groups And Group Development Commerce Essay Many people used the word team and group interchangeably, but there are actually a differences between the word team and group. It is much easier to form a group than a team. In group, they could be grouped according to gender, experience, age or other common factors. Although the effectiveness of the group may be variable, but forming a group just based on a certain commonality is not particularly difficult. A groups strength may come from sheer volume or willingness to carry out a single leaders commands. On the other hand, a team can be more difficult to form. The members will selected for their complementary skills, not a single commonality. In a team, each member has a purpose and a function. So the overall success depends on a functional interpersonal dynamic. When working together in this way, there is usually not as much room for conflict. A teams strength depends on the commonality of purpose and interconnectivity between individual members. GROUPS AND GROUP DEVELOPMENT Although most groups arent formed for such dishonest purposes, the success of this group at its task was impressive (Stephen and Mary, 2007). Managers would like their groups to be successful at their tasks and the first step is understanding what is a group and how its develop. 2.1 Group Definition According to Stephen and Mary (2009), a group can be defined as two or more interacting and interdependent individuals who come together to achieve specific goals. . Although a groups often have goals, but theres not state that group members must share a goal or motivation. 2.2 Types of Group There are two types of group which is formal group and informal group. Formal group will designated work assignments and specific tasks directed at accomplishing organizational goals and defined by an organizations structure. There are four examples of formal work groups ( Sidin J.P, 2011) : Command group groups that are determined by the organization chart and composed of individuals who report directly to a given manager. Task group groups composed of individuals brought together to complete a specific job task. Cross-functional teams groups that bring together the knowledge and skills of individuals various work areas of groups whose members have been trained to do each others job. Self-managed teams groups that are essentially independent and that, in addition to their own tasks, take on traditional managerial responsibilities, such as hiring, planning and scheduling, and evaluating performance. While informal groups are group-based social elements. These groups occur naturally in the workplace and is more concerned with friendship and common interests. A friendship group is friend who do many activities together and it is relatively permanent and informal, and its benefits from the social relationship among its members. Meanwhile, the common interest such as bowling group and womens network is relatively temporary and is organized around an activity or interest shared by its members. 2.3 Stage of Group Development http://gmx.xmu.edu.cn/ews/business/management/ABrobbins4_15_09.gif Exhibit 2.1 Stage of Group Development ( Sidin J. P. , 2011) 2.3.1 forming Forming stage is the first stage in group development. This stage has two phases. In a formal group, people join because of some work assignment. The second phase begins when the people joined the formal group. Then these people define the groups purpose, structure, and leadership. This stage is complete when members begin to think of themselves as part of a group. 2.3.2 storming When group members get to know each other better, the storming stage begins. This storming stage named because of the intragroup conflict that occurs over who will control the group and what the group needs to be doing. This stage is characterized by a bid for power. There are six characteristics of the storming stage which is competition, strained relationships, leader is challenged, tension and disunity, differences are uncomfortable, and the issues of autonomy vs. control support vs. competition influence decision-making. When this stage is complete, there is a relatively clear hierarchy of leadership and agreement on the groups direction. 2.3.3 norming The norming stage is one in which close relationship develop and the group become cohesive and has begun to be effective. Theres now a strong sense of group identity and camaraderie. This stage will be complete when the group structure has been assimilated as a common set of expectations about behavior and become solid. There are some characteristics about this stage : Issues of strengthening relationships, open communication, positive/constructive feedback. Increased cohesion Emerging trust More collaboration Appreciation of differences 2.3.4 performing The fourth stage of group development is performing. Many groups never reach the performing stage. Â  This is the stage at which would be an excellent customer service and to create an impressive examples. The group structure is in place and accepted by group members. In this stage, characteristics include productivity, full development of the potential of the group and the individuals in the group, harmony and effective problem-solving. This is the last stage of development for permanent work groups. 2.3.5 adjourning The final stage is adjourning. In this stage, the group prepares to disband. Group members will react in some way that is independent of a confident and excited about the performance of their group. While, others may be sad over the loss of camaraderie and friendship. Thats why more attention is focused on wrapping activities rather than task performance. WORK GROUP PERFORMANCE AND SATISFACTION A work group is include the organizations strategy, authority relationships, formal rules and regulations, the availability of resources, employee selection criteria, the performance management system and culture, and the general physical layout of the groups work space. Thats mean a work group was affected by external conditions (Stephen and Mary, 2009).Exhibit 3.1 Group Performance Satisfaction Model (Sidin J. P. , 2011) 3.1 Group Member Resources Group member resources is a groups performance potential that depends on a large extent on the resources each individual brings that group. These resources include personality traits, knowledge, skills, and abilities. They will determine what members can do and how effectively they perform in that group. There especially conflict management and resolution, communication, and collaborative problem solving in interpersonal skills. Its consistently emerge as important to perform well in a work group. The group performance also affected by personality traits because they strongly influence how an individual will interact with the other group members. 3.2 Group Structure Work group arent unorganized crowds. They have an internal structure that shapes members behavior and influences group performance. The structure defines roles, norms, conformity, status systems, group size, group cohesiveness, and leadership. Roles A role refers to behavior patterns expected of someone occupying a given position in a social unit. In an organization, managers arent the only one individual who play the various roles. In a group, individuals are expected to do certain things because of their position in the group. Besides that, the different expectations of these roles, make the employees face role conflict. 3.2.2 Norms All groups have norms. A norm is a standards or expectations that are accepted and shared by a groups members (Stephen and Mary,2009). Norms that exist within the group structure emphasizes such things as punctuality, work output, absenteeism, speed to complete the work, and the amount of socializing at work. Norms that exist within the group structure will enhance the action of antisocial individuals. Conformity Each individual would like to be accepted by the society around. As well as individuals who are in a group in the organization. However, they are too afraid not accepted by other group members, then the vulnerability pressure to conform. Early experiments done by Solomon Asch demonstrated the impact of the conformity has on an individuals attitudes and judgment. Next, people tend to find it more pleasant to agree than to be disruptive even it will improve the groups effectiveness. So we conform. But conformity can go too far when an individuals opinion differs significant from the others in that group. When this happens, a phenomenon that known as groupthink will appear. Groupthink will occur when there is a clear identity, group perceives a collective threat to positive image and members will hold this positive group image that they want to protect. Exhibit 3.2 Examples of Aschs Cards ( Sidin J. P. , 2011) Status Systems Status systems are an important factor in understanding groups. Status is a position, rank within a group and a prestige grading. Status can be formally and informally. Status is formally and its important to employees believe that the organizations formal status systems is congruent. Theres consistency between the status symbols he or she receives from the organization and the perceived ranking of an individual. While, the informally of the status systems is may be conferred by characteristic such as skill, education, or experiences. Anything can have status value if the members of the group evaluate it that way. Group members have no problem to placing into status category. Usually the group members will agree about who has low or high status. Group Size According to Moorhead and Griffin (2001), group size is the number of members of the group and have an important effect on performance. Group size will affect the number of resources available to perform the task, but the effect depends on what the group is supposed to accomplish. One important research finding related to group size concerns social loafing ( Stephen and Mary,2009). Social loafing is the tendency of some members of groups to put forth less effort in a group than they would when work alone. The implications of social loafing are significant. When managers use groups, they must identify the individual effort. If not, group productivity and individual satisfaction may decline. Group Cohesiveness According to Moorhead and Griffin (2001), group cohesiveness is the extent to which a group is committed to remaining together. Group cohesiveness very important because its related with a groups productivity. Some research has generally shown that cohesive groups are more effective than less cohesive ones (Stephen and Mary, 2009) and the relationship between cohesiveness and effectiveness is complex. The more the members follow its goal, the more cohesive for that group. A cohesive group is more productive than a less cohesive group when the goals are desirable. But, the productivity will decrease when the cohesiveness is high and attitudes are unfavorable. In this case, theres no significant effect on productivity when cohesiveness is low and goals are not supported. Exhibit 3.3 Group Cohesiveness and Productivity ( Sidin J. P. , 2011) Group Processes Group processes are important to understanding work group because they will influence the performance and satisfaction positively or negatively. The synergy of four people on marketing research team who are able to generate more ideas than work individually is an example of positive process factor. While, the group that have negative process factor such as social loafing, poor communication and high levels of conflict, that may hinder the effectiveness of the group. There are two important group process : Group decision-making Its an organization that doesnt use task forces, review panels, study team or other similar groups to making a decision. In group decision-making, there are such of advantage to do it. Some of that is groups can generate more knowledge and compete information for their work. Besides that, they will have an experience when work in group to make a decision process that an individual cannot. In addition, groups will increase legitimacy. Decision made in a group more legitimacy than decisions that made by self. While, the disadvantage to do this group decision-making is that almost group always take more time to reach a solution than would an individual. Another disadvantage is the critical thinking that group think can determine will harm the quality of final decision. If we want to determine whether groups are effective at making decision, it depends on the criteria that used to assess effectiveness. The group decision may work best when its creativity, accuracy, and degree of acceptan ce are important. Beside of that, the decision effectiveness is influenced by the group size. Exhibit 3.4 Creative Group Decision Making ( Sidin J. P. , 2011) Conflict management Conflict is perceived incompatible differences that result in interference or opposition (Stephen and Mary, 2009). In conflict management, there are three different views such as traditional view of conflict, human relations view of conflict, and interactionist view of conflict. The traditional view of conflict is the view that all conflict is bad and must be avoided. Meanwhile, the human relations view of conflict is the conflict that is natural and inevitable outcome in any group but has potential to be positive force in contributing to a groups performance. The interactionist view of conflict is the most recent view. Its proposes that not only be a positive force in a group, but some conflict is absolutely necessary for the group to perform effectively. Exhibit 3.5 Conflict and Group Performance (Sidin J. P. , 2011) There are more conflict such as functional conflicts, dysfunctional conflicts, task conflicts, relationship conflicts, and process conflict because the interactionist view doesnt suggest that all conflicts are good. Exhibit 3.6 Conflict- management Techniques ( Sidin J.P, 2011) 3.3 Group Task Group task are either simple and complex. Simple task are standardized and routine. While, complex task tends non-routine or to be novel. Its appear when the more group benefits from group discussion about alternative work methods, so the more complex of that tasks. In this situation, group members will rely on standard operating procedures and no need to discuss such alternatives for a simple task. Thus, the tasks are complex and interdependent when effective communication and controlled conflict are most relevant to group performance. 4.0 TURNING GROUPS INTO EFFECTIVE TEAMS From group there will turning to teams. In teams all of the members will working together to achieve the common goals. A team is not just a people who work at the same time in the same place. Most of the people that work in a team are not all equal in talent, education, or experience, but they are equal in one vitally important way. Team relationships fulfill that basic needs. 4.1 Teams Definition According to Williams (2007), work team is a small number of people that work together with complementary skills who hold themselves mutually accountable for pursuing a common purpose, improving interdependent work processes and achieving performance goals. In many industries, teams are importance because they help organizations respond to challenges and specific problems. 4.2 Advantages and Disadvantages of Work Team In work as a team, there will have a lot of advantages and disadvantages. The advantages when work as a team is: Improved customer satisfaction Improved product and services quality Improved speed and efficiency in product development Employee job satisfaction Better decision making and problem solving Meanwhile, the disadvantages of work as a team is : Initially high employee turnover Social loafing Disadvantages of group decision such as groupthink, inefficient meetings, domination by a minority, and lack of accountability. 4.3 Groups Versus Teams Work teams Work groups Leadership role is shared. One leader clearly in charge. Accountable to self and team. Accountable only to self. Team creates specific purpose. Purposed is same as broader organizational purpose. Work is done collectively Work is done individually. Meetings characterized by open- ended discussion and collaborative problem-solving. Meetings characterized by efficiency; no collaboration or open-ended discussion. Performance is measured directly by evaluating collective work output. Performance is measured indirectly according to its influence on others. Work is decided upon and done together. Work is decided upon by group leader and delegated to individual group members. Table 4.1 Source: J. R. Katzenbach and D. K. Smith. The Wisdom of Teams, Harvard Business Review, July-August 2005, p.161. 4.4 Types Of Teams Teams can do all of things. They can design products, coordinate projects, offer advice, provide services, negotiate deals, and make decisions (William, 2007). Work teams is a groups whose members work intensely on a specific, common goals, individual and mutual accountability, using their positive synergy, and complementary skills. There are several types of teams: Types of team Explanation Problem-solving teams A team from the same functional area or department thats involved in efforts to solve specific problems or improve work activities. Self-managed work team A type of work team that operates without a manager and is responsible for a complete work segment or process. Cross-functional team It is a work team composed of individuals from various specialties. Virtual team Its a type of work team that uses technology to link physically dispersed members in order to achieve a common goals. Table 4.2 Types of team ( Sidin J. P. , 2011) 4.5 Creating Effective Work Teams Teams are not always achieve high levels of performance and also not always effective. However, research on teams provide insight into the characteristics typically associated with effective work teams. There are nine of characteristics of effective teams: Exhibit 4.1 Characteristics of Effectiveness Teams (Sidin J. P. , 2011) Characteristic Explanation Clear goals It is a high performance team that has clear understanding of the goal to be achieved. The members in the team will know what theyre expected to accomplish, committed to the teams goal, and understand how they will work together to achieve these goals. Relevant Skills Effective teams are composed of competent individuals that have the necessary interpersonal and technical skills to achieve the desired goals while working well together. This is important because not everyone who is technically competent has the interpersonal skill to work as a team members. Mutual Trust The effective teams are characterized by high mutual trust among the members. The members must believe in each others ability, integrity and character. This is because trust is fragile. So, maintaining trust requires careful attention by the managers. Unified Commitment This characteristic is characterized by dedication to a teams goals and a willingness to expend extraordinary amounts of energy to achieve them. Good Communication All of the effective teams will characterized by the good communication. Members convey messages, verbally and non-verbally, between each other in ways that are readily and clearly understood and the feedback will helps to guide team members and correct misunderstanding. Negotiating Skills Effective team will making adjustments to who does what and this requires team members to posses negotiating. This is because the problems and relationships are regularly changing in teams, and members need to be able confront and reconcile differences, Appropriate Leadership By clarifying goals, demonstrating that change is possible by increasing the self-confidence of team members, overcoming criteria, and helping members to more fully realize their potential. Internal Support The team should have sound infrastructure, which means proper training, a clear and reasonable measurement systems that team members can use to evaluate their overall performance, a supportive human resources system, and an incentive program that recognizes and rewards team activities. External Support In external support, managers should provide the team with resources needed to get the job done. Table 4.3 Characteristics of Effective Teams and The Explanation (Stephen and Mary, 2007) CHALLENGES IN MANAGING TEAMS Managers can build effective teams by understanding what influences the satisfaction and performance. But, manager will also face some current challenges in managing team, primarily to those that associated with managing global teams and with understanding organizational social networks ( Stephen and Mary, 2007). 5.1 Managing Global Teams There are two characteristics of todays organizations are obvious such as global and work is increasingly done by teams. That means that any manager would like to manage a global team. There are drawbacks and benefits in using the global teams. Drawbacks Benefits Disliking team members. Greater diversity of ideas. Mistrusting team members. Limited groupthink. Stereotyping. Increased attention on understanding others ideas, perspectives, etc. Communication problems. Stress and tension. Table 5.1 Global teams (source: based on N. Adler, International Dimensions in Organizational Behavior, 4Th Edition, pp.141-147) In addition, by using our group model as a framework, we can see some of the issues associated with managing global teams such as: Group Member Resources in Global Teams. In global organizations, understanding the relationship between group performance and group member resources is especially challenging because the unique cultural characteristics represented by members of a global teams (Stephen Mary, 2007). In addition, managers need to be familiar with the team members abilities, skills, knowledge, and personality to clearly understand the cultural characteristics of the group members that they manage. Group Structure. Some of the structural areas where we see differences in managing global teams include social loafing, cohesiveness, status, and conformity. Social loafing has a Western bias(Stephen Mary, 2007). Its consistent with individualistic cultures, such as the U. S. and Canada, which is dominated by self-interest but not consistent with collectivistic societies, in which individuals are motivated by group goals ( Sidin J. P., 2011). Cohesiveness is another group structural element with which managers will face the special challenges and its often more difficult to achieve because of the higher levels of mistrust, miscommunication, and stress. For status, it is important in France and depends on social origin and also the countries that have differ on the criteria that confer status. Besides that, to manage global teams, conformity also findings generalizable across culture. As might as expected, conformity to social norms tends to be higher in collectivistic cultures than in individualisti c cultures ( Sidin J.P., 2011). Group Processes. The process that global teams use to do their work can be particularly challenging for managers and for one thing communication issues often arise because not all team members may be fluent in the teams working language (Sidin J. P., 2011). This particular situation will lead to inaccuracies, inefficiencies, and misunderstanding. However, managing conflict in global teams isnt easy, especially when those teams are virtual teams because conflict can interfere with how a team uses information (Stephen Mary, 2007). The Managers Role. There are things that managers can do to provide a group with an environment in which effectiveness and efficiency are enhanced. First of all, because communication skills are vital, so managers should focus on developing those skills (Sidin J.P., 2011). Also, managers must consider cultural differences when deciding the type of global team to use. Finally, its vital that managers be sensitive to the unique differences of each member of a global team ( Stephen Mary,2007). CONCLUSION As a conclusion, work as a group will have a strong, clearly focused leader who had individual accountability and also have a purpose thats the same as the broader organizational mission. While, work as a team have some following characteristic such as, shared leadership roles, specific team purpose and so on. From this chapter, we know that group is two or more interacting and interdependent individuals who come together to achieve specific goals ( Stephen Mary, 2007). While, team is a small number of people with complementary skills who are committed to common purpose, common performance goals, and an approach for which they hold themselves mutually accountable (Griffin, 2006). Ginny V Lee in his article From Group to Team have said that in teams, they will shared the common purpose and goal. Besides that, team members also are interdependent because they understand that they need to work well as a unit inorder to complete their task. Ginny also said that skilled facilitation moves a group from a collection of individuals to an effective team.

Professionalism and Ethics in Counselling

Professionalism and Ethics in Counselling My understanding of professionalism is having the discipline to be aware of and work to a set of values made up of legal statutes, of professional body frameworks and guidelines and of employer policies, frameworks and guidelines, which together detail expected conduct. Those statutes, policies, frameworks and guidelines should be used to identify roles and responsibilities which in turn define boundaries. The British Association of Counselling and Psychotherapy (BACP), of which I am a student member, is the largest professional body in the UK for counselling and psychotherapy and lays down what standards of conduct counsellors, service users and the public expect at a national level. If a counsellor or therapist is a member of a professional body, he or she will be bound by a code of professional ethics framework or in the case of the BACP, the ethical framework†¦it recognises that choices are often not clear-cut, and that sometimes difficult decisions need to be made that, even when taken in good faith, may have unpredictable and unwanted outcomes (Merry, 2002:11) Professionalism and ethics both relate to proper conduct. I view the ethical framework as a list of qualities for how the counsellor should be and a list of behaviours for what the counsellor should do and not do. Examples of the desired attitudes include possessing empathy, sincerity, integrity, resilience, respect, humility, competence, fairness, wisdom and courage. Examples of the desired behaviours include fidelity, autonomy, beneficence, non-maleficence, justice and self-respect. The BACP produced the ethical framework to protect both the client and counsellor through good practice in counselling and psychotherapy. It sets out a series of professional and personal values, underlying principles and moral qualities which reflect my attributes as a trainee counsellor in order to promote a safe and professional environment, one where I could enable clients to allow trust to develop within our relationship. I abide by the BACP guidance on good practice which is concerned with client safety, counsellor responsibility and accountability, clear contracting and my competence as a trainee counsellor. It provides information for what counsellors are expected to do and sanctions for consequences of malpractice. I have chosen a hypothetical ethical dilemma, albeit a realistic one, relevant to my chosen placement at The Truce YMCA in Lancaster. A sixteen year old female client presents with news of her parents having separated two weeks previously. She lives with her mum who is drinking excessive amounts of alcohol and who is not coping with the day to day duties of looking after the clients nine year old brother, who is now mostly in the clients care. No other meals are being provided other than school dinners and no money is being allocated to them for food. Last night the clients mum pushed the client against the wall and the client has a head injury. The client asks me not to tell anyone. The ethical dilemma here is that my client has disclosed a Child Protection issue and asked me to maintain the confidentiality aspect of the contract. There are several implications, professionally I must breach confidentiality as there would be no way that I could hold that information, my integrity would be conflicted. I would have a professional obligation that would be impossible for me to ignore. However, by breaching confidentiality this could have severe consequences for the client, myself (our relationship), and the clients family. A question I need to ask myself is: What are our statutory duties and responsibilities? We  have a duty under the Children Act 1989 to safeguard and protect children who may be suffering from abuse. This may be physical, sexual, emotional or as a result of neglect http://www.tameside.gov.uk/childprotection/parentinfo#t2 date accessed, 21st April 2010 The YMCA has put together a procedure flow chart and as part of my training I have been made aware of it. It is a clear example of my role, responsibilities and boundaries. Safeguarding means doing everything you can to protect children and young people from harm. A safeguard is a measure to help reduce the risk of children and young people being harmed. http://www.nspcc.org.uk/Inform/trainingandconsultancy/consultancy/cst/safe_communities_toolkit_english_wdf70126.pdf date accessed, 19th April 2010 The disclosure demands to be sensitively, sincerely and respectfully explored in order to honour the principle of non-maleficence because every child matters. As a trainee counsellor I have an ethical responsibility to strive to mitigate any harm caused to a client even when the harm is unavoidable or unintended (BACP, 2007:03) There are several implications: I am aware that the principle of fidelity requires a responsibility to honour the trust that has been placed in me as a trainee counsellor and that how I move the process forward from this point could alter how the client and I may or may not work together in the future. Without confidentiality and empathy there is potential to harm the relationship, and as Bond (1993:46) states that, responsibilities to the client are the foremost concern of the counsellor. The justification of counselling rests on this work being undertaken in a counsellor-client relationship. Where as a trainee counsellor can I find guidance on consent and disclosure? I could check against the BACP guidelines, with my casework supervisor, my managerial supervisor, the agencies codes of practice and policies, my tutors and Social Services. To avoid the possibility of prosecution I need to respect my role and abide by the BACP guidance on good practice which is concerned with client safety, counsellor responsibility and accountability, clear contracting and my competence as a trainee counsellor. Professional accountability is also key in ensuring public protection and allows the Profession to move forward enjoying the public confidence in the services provided http://www.bacp.co.uk/prof_conduct/ 4th February 2010 The principle of beneficence involves acting in the clients best interest and maintaining the standards of competence and knowledge expected for members who continue to both personally and professionally develop by using supervision for support. As I am working within an agency I am expected, as a member of the BACP, to have ongoing regular supervision for my work with a clinical supervisor and with my managerial supervisor. Supervisors, managers and counsellors have a responsibility to maintain and enhance good practice, to protect clients from poor practice (promoting their wellbeing) and for the counsellor to acquire the attitudes, skills and knowledge required for each of their roles raising awareness and ensuring the fair treatment of all clients and the uniqueness of individual people regarding culture differences, gender or disabilities which involves the principle respect of justice. When considering what action to take the first step I would take would be to explore what the client had told me by clarifying what had been said in order to check out my understanding with the client. It is important to identify that there is a problem and if so I would then work out whose problem it was and in this case it would be the clients. Yet I would be responsible to her, myself and accountable up the chain of command within the organisation. By setting the contract provided by The YMCA clearly so that it is understood by the client there is less chance of misunderstandings and more chance of boundaries being clear at the onset. The agreement of a contract protects both the client and the counsellor. It proves that each party has agreed their responsibilities and boundaries and that they each know where they stand in the counselling process in relation to their obligations to each other. I would need to refer back to the initial contract to remind the client about our agreement that would be in place between us. I would have competently explained at the time that should harm to self or others be disclosed to me that I would need to breach confidentiality. I would use appropriate language for a sixteen year old to understand and include her in the process. I would respect the principle of respect for autonomy by discussing the necessity of safeguarding her, protecting her and her younger brother and, with her consent, chec king whether the child protection officer would be available to enter the room to work it through all together by understanding my job roles and responsibilities and working within my training and experience competently I could deliver a professional level of service that promotes safety and both at the same time being fully aware that she has choices and human rights too. Although I could have a conflict of interest in that I would have to breach confidentiality†¦ Human Rights Act 1998 Article 8.1 Everyone has the right to respect for his private and family life, his home and his correspondence. Article 8.2 There shall be no interference by a public authority with the exercise of this right except as such as in accordance with the law and is necessary in a democratic society in the interests of national security, public safety or the economic well-being of the country, for the prevention of disorder or crime, for the protection of health or morals, or for the protection of the rights and freedoms of others (Bond, 2010:158). †¦I would protect myself from litigation as I have a duty to observe the Code of Professional Conduct and the other guidelines issued by the BACP. Not all laws are perfect, the problem is that laws are often generalised and open to some interpretation and thats where they can be exploited. The law regarding sixteen year olds (child versus Gillick competent versus adult) and the obligation of Social Services to look after somebody until eighteen years of age is not black and white. Somebody planning to go to the Dignitas clinic in Switzerland to end their life is within their own rights and it would be an example of a case where a counsellor could respect the clients dignity. At the first available chance I had I would follow the example of a child protection form, from my safeguarding policy and guidelines provided by the organisation and make very clear, accurate, brief, factual notes of who said what, when it was said, where it was said and the nature of the concern. I would bear in mind that the notes could be read by the client herself and if I was required to write a report for court I would be aware that I have not been trained to write such a report and seek advice. According to Pollecoff, et al. (2002:58) Counsellors and psychotherapists are in a unique position when asked to give evidence†¦Ã¢â‚¬ ¦unlike other professionals, they do not necessarily keep detailed notes of each session held with a client†¦Problems can arise regarding client confidentiality in the context of presenting reports or giving evidence. I would file the notes confidentially and each client has a code to be used for anonymity purposes, store for six months, once the case is closed, then they are destroyed. Bond (2010:158) suggests The Data Protection Act 1998†¦Ã¢â‚¬ ¦covers a wide range of requirements to do with record-keeping. I would call my case supervisor and I would explain what has happened, what I did (discussed with line manager and or referral to Child Protection Officer etc.) and ask him if there is anything else I should have done or could do. Working within a multi agency can be useful as it can meet the needs of young people more effectively. Confidentiality procedures are in place and consent must be given by the person concerned and must be present when consented information is shared. There are exceptional circumstances. At the same time how I present myself and interact with people (language, appearance, actions and interactions) influence impressions. There are informal expectations and continuing with both professional and personal development (supervision). Questions like What does the BACP say about this? are what I need to ask myself in during my evaluation in order to do the right thing and knowing how important it is to not do the wrong thing because that could cause damage to more than the client in the room. I hope that I have demonstrated that I understand that there is a need to act within the law at all times but in a way that provides as much support and protection as possible towards the client first and foremost, towards myself and towards the organisational structure and the profession itself. It is not always a case of knowing what to do to as an expert, but it seems to be a case of knowing what to do next and who to go to in order to get the answers needed.

Personal Statement Essay -- College Admissions Essays

We are the media and the media is us. That statement is very broad and is so for a good reason. Through out the world and the history of our society, media has transformed, melted, bent, molded and made our society and culture what it is today. But at the same time, our culture and society has done the exact same thing to media. It is hard to realize or imagine a time without televisions, telephones, fax machines, printers, computers, cell phones, pagers and other electronic technologies that have made our lives, hopefully, stress-free. Those items were and are still being invented today to make our lives easier and better, but are they really making life easier and better? Media plays a big part in defining what society wants and gets. Society tells our media what society wants. There are both upsides and downsides to the media, one saying what both of us want and two doing what both of us want.   Ã‚  Ã‚  Ã‚  Ã‚  First let’s start with the downsides of our media. Our media censors us and desensitizes us to our own society. Lets take for example the news, in news the stories that air are stories that include blood and guts. Why? Because those stories reflect the morals of society. We would rather actually see someone slashed, shot, run over, or cut than be asked to imagine what happened. The reason for preferring violent images comes from and stems from movies. It is not a good action flick unless someone loses their life or good guy, bad guy. It is what we are used to. Even in the fifties there was Zorro and the masked ranger. The good guy always had to win no matter what. This way of thinking is where the media gets their ideas. Another downside of media is the negative image they give the United States. If you go to Ireland and ask them how they thought Americans lived, they would probably say that we are stuck up, violent, non-caring, money grubbing and work obsessed people. They get this idea from American sitcoms that air there. One for Example is The Simpsons. They think that all males sit on the couch, drink beer, and are not responsible. They think that little boys go around and cause trouble and get kicked out of school. As for little girls, they think they are angels and never do anything wrong unless possessed by the devil. Finally, they think that females are in charge of keeping the males out of trouble, as well. Of course, this i... ...t are kids going to do if you tell them that they cannot have it. They will some how or another get their hands on it, whether it be from another kid or buying it themselves. And that is exactly what happened. He got the news press after him, the news media after him, MTV did a interview with him, and all because parents did not like his lyrics. My response to them is then do not listen to him and do not by his records. The only way a music artist makes any money is if the records sell. Now, on the other hand, if any of this happened to a politician their career would be over. They would never be believed and many people would disregard what they say. Again it all started because the media opened their mouth and printed it on paper. Overall media is a good form of communication and reinsures that this country would not survive without it if you took it away from them right now, but if we never had media in the first place, this might have a different answer. Media is all around and you can never get away from it. Always be aware of what they are saying, but do not take their word as Gospel. They are just expressing the same right all of us have. Just remember to express your own.

Queen Elizabeth and Annabella in Tis Pity Shes a Whore by John Ford Es

Queen Elizabeth and Annabella in "Tis Pity She's a Whore" by John Ford Annabella, the female protagonist in John Ford’s play, ‘Tis Pity She’s a Whore, ultimately dies after trying to meet the conflicting demands that her brother and father place on her. While her brother, Giovanni, commands her to be his clandestine lover, her father, Florio, expects her to marry a socially appropriate man and bear a child. These demands closely resemble the real-life demands that Queen Elizabeth I’s subjects placed on her because they simultaneously wanted her to fulfill their erotic desires, marry a politically appropriate man, and produce an heir to the throne. Ford’s play â€Å"was first published in 1633,† thirty years after the death of Queen Elizabeth I, but â€Å"nostalgia†¦ in the late 1620’s and 1630’s†¦ [drove] people†¦to measure a worsening political situation against inevitably heightened memories or impressions of what life had been like under the great queen† (Morris vii; B arton 724). While it’s not clear whether this nostalgia for the reign of Elizabeth drove Ford when he wrote his play, there are clear parallels between the demands that were placed on the factual Elizabeth and on the fictional Annabella; moreover, there are striking parallels between the responses to the two women’s deaths. Both women were expected to forever remain objects of male erotic desire, and the characteristics of Elizabeth that evoked erotic desire in her subjects parallel the characteristics of Annabella that elicit erotic desire in Giovanni. Just as â€Å"courtiers paid homage to Elizabeth as an ever-youthful yet unapproachable object of desire[,]† Giovanni confesses to Annabella, â€Å"[T]he view / Of thy immortal beauty hath untuned / All harmony both... ...bbory, Achsah. â€Å"’Oh, Let Mee Not Serve So’: The Politics of Love in Donne's Elegies.† ELH 57.4 (1990): 811-833. King, John N. â€Å"Queen Elizabeth I: Representations of the Virgin Queen.† Renaissance Quarterly 43.1 (1990): 30-74. Morris, Brian. Introduction. ‘Tis Pity She’s a Whore. By John Ford. Ed. Brian Morris. London: Black, 1992. vii-xxvii. Mullaney, Steven. â€Å"Mourning and Misogyny: Hamlet, The Revenger's Tragedy, and the Final Progress of Elizabeth I, 1600-1607.† Shakespeare Quarterly 45.2 (1994): 139-162. â€Å"Promiscuous, a.2a.† Oxford English Dictionary. 1989 Second ed. OED Online. Oxford University Press. 8 May 2005 . Rose, Mary Beth. â€Å"The Gendering of Authority in the Public Speeches of Elizabeth I.† Publications of the Modern Language Association of America 115.5 (2000): 1077-1082.

Project Report on Mvat

CONTENT Sr. No. Topics Covered Page No. 1 Section – I Introduction to Value Added Tax. 1 – 12 2 Section – II Value Added Tax in Maharashtra. 13 A. Introduction. B. Registration under Value Added Tax. C. Explaining Value Added Tax. D. Calculating Tax Liability. E. Filing of Return and Paying Tax. F. Records and Accounts. G. Business Audit. H. Appeals. I. Tax Payer Service. J. Recovery, Offences and Penalties. 14 – 16 17 – 21 22 – 27 28 – 36 37 – 44 45 – 48 49 – 51 52 – 56 57 – 61 62 – 66 3 Section – III Appendix. 67 – 69 4 Section – IV Conclusion. 70 5 Section – V Bibliography. 71 WHAT IS Value Added Tax? Value Added Tax is a broad-based commodity tax that is levied at multiple stages of production. The concept is akin to excise duty paid by the manufacturer who, in turn, claims a credit on input taxes paid. Excise duty is on manufacture, while VAT is on sale and both work in the same manner, according to the white paper on VAT released by finance minister Chidambaram. The document was drawn up after all states, barring UP, were prepared to implement VAT from April. It is usually intended to be a tax on consumption, hence the provision of a mechanism enabling producers to offset the tax they have paid on their inputs against that charged on their sales of goods and services. Under VAT revenue is collected throughout the production process without distorting any production decisions. WHY VAT IS PREFERRED OVER SALES TAX? While theoretically the amount of revenue collected through VAT is equivalent to sales tax collections at a similar rate, in practice VAT is likely to generate more revenue for government than sales tax since it is administered on various stages on the production – distribution chain. With sales tax, if final sales are not covered by the tax system e. g. due to difficulty of covering all the retailers, particular commodities may not yield any tax. However, with VAT some revenue would have been collected through taxation of earlier transactions, even if final retailers evade the tax net. There is also in-built pressure for compliance and auditing under VAT since it will be in the interest of all who pay taxes to ensure that their eligibility for tax credits can be demonstrated. VAT is also a fairer tax than sales tax as it minimizes or eliminates the problem of tax cascading, which often occurs with sales tax. These are facilitated by the fact that VAT operates through a credit system so that tax is only applied on value added at each stage in the production – distribution chain. At each intermediate stage credit will be given for taxes paid on purchases to set against taxes due on sales. Only at consumption stage where there are no further transactions will there be no tax credits. Lack of input credit facility in sales tax often results in tax on inputs becoming a cost to businesses which are often passed on to consumers. Sales tax is often applied again to the sales tax element of the cost, thus there is a problem of tax on tax. This is not the case with VAT, which makes it a neutral tax as it provides the least disturbance to patterns of production and the generation and use of income. In addition, the audit trail that exists under the VAT system makes it a more effective tax in administration terms than sales tax as it helps with the verification of VAT amounts declared as due. This is made possible by the fact that one person's output is another's input. As with sales tax imports are treated the same way as local goods while exports are zero- rated to avoid anti-export bias. Notwithstanding the advantages mentioned above, it is worth noting that VAT is a considerably complex tax to administer compared with sales tax. It may be difficult to apply to small companies due to difficulties of record keeping and its coverage in agriculture and the services sector may be limited. To cover the high administration costs, VAT rates of 10-20 per cent are generally recommended. The equity impact of the relatively high rates have been a cause for concern as it is possible that the poor spend relatively high proportions of their incomes on goods subject to VAT. Thus the concept of zero VAT rate on some items has been introduced. Difference between VAT and CST Under the CST Act, the tax is collected at one stage of purchase or sale of goods. Therefore, the burden of the full tax bond is borne by only one dealer, either the first or the last dealer. However, under the VAT system, the tax burden would be shared by all the dealers from first to last. Then, such tax would be passed upon the final consumers. Under the CST Act, the tax is levied at a single point. Under the VAT system, the retailers are not subject to tax except for the retail tax. Under the CST Act, general and specific exemptions are granted on certain goods while VAT does not permit such exemptions. Under the CST law, concessional rates are provided on certain taxes. The VAT regime will do away with such concessions as it would provide the full credit on the tax that has been paid earlier. Under VAT law, first, the dealer pays tax on the sale or purchase of goods. The subsequent dealer pays tax on the portion of the value added upon such goods. Thus, the tax burden is shared equally by the last dealer. To illustrate the whole procedure of VAT, an example is as follows: At the first point of sale, the value of goods is Rs. 100. The tax on this is 12. 5%. Therefore, the net VAT would be 12. 5%. At the second change of sale, the sale value is Rs. 120 and the tax thereon is 15%. The tax that is to be paid at every point is 15%. The input tax is 15%. The dealer will get a credit for first change in sale of 2. 5%– i. e. 15% -12. 5%. Therefore, 2. 5% will be the net rate. At the third change of sale, the sale value is Rs. 150 and the tax on this is 18. 75%. At the last stage, the tax paid is 18. 75%. The Input Tax is 18. 75%. Dealer's get a credit for second change in sale? i. e. 18. 75% -15% = 3. 75%. Therefore, 3. 75% would be the net VAT. This means that VAT is paid in the last point tax under the sale tax regime. Who gains? State and Central governments gain in terms of revenue. VAT has in-built incentives for tax compliance – only by collecting taxes and remitting them to the government can a seller claim the offset that is due to him on his purchases. Everyone has an incentive to buy only from registered dealers – purchases from others will not provide the benefit of credit for the taxes paid at the time of purchase. This transparency and in-built incentive for compliance would increase revenues. Industry and trade gain from transparency and reduced need to interact with the tax personnel. For those who have been complying with taxes, VAT would be a boon that reduces the cost of the product to the consumer and boosts competitiveness. VAT would be major blow for tax evaders, both manufacturers who evade excise duty payments and traders who evade sales-tax. What'll be the tax burden? The overall tax burden will be rationalized as it'll be shared by all dealers, and prices, in general, will fall. Moreover, VAT will replace the existing system of inspection by a system of built-in self-assessment by traders and manufacturers. The tax structure will become simple and more transparent and tax compliance will improve significantly. It will also be simpler and offer easy computation and easy compliance. VAT will prevent cascading effect through input rebate and help avoid distortions in trade and economy by ensuring uniform tax rates. Who pays? All dealers registered under VAT and all dealers with an annual turnover of more than Rs 5 lakh will have to register. Dealers with turnovers less than Rs 5 lakh may register voluntarily. How to pay? VAT will be paid along with monthly returns. Credit will be given within the same month for entire VAT paid within the state on purchase of inputs and goods. Credit thus accumulated over any month will be utilized to deduct from the tax collected by the dealer during that month. If the tax credit exceeds the tax collected during a month on sale within the state, the excess credit will be carried forward to the next month. Which goods will be taxable under VAT? All goods except those specifically exempt. In fact, over 550 items will be covered under the new tax regime, of which 46 natural and unprocessed local products would be exempt from VAT. About 270 items, including drugs and medicines, all agricultural and industrial inputs, capital goods and declared goods would attract 4% VAT. But, following opposition from some states, it was decided that states would have option to either levy 4% or totally exempt food grains from VAT but it would be reviewed after one year. Three items – sugar, textile, tobacco – under additional excise duties will not be under VAT regime for one year but existing arrangement would continue. OTHER CONSIDERATIONS It is imperative that policy makers in considering adoption of VAT should be interested in the economy wide impact of this tax. Special emphasis is often placed on its effect on equity, prices and economic growth. This is particularly important because of the potential effects on consumption of certain commodities that have a direct or indirect effect on labour productivity. VAT effect on inflation In considering the introduction of VAT, countries are often concerned that it would cause an inflationary spiral. However there is no evidence to suggest that this is true. A survey of OECD countries that introduced VAT indicated that VAT had little or no effect on prices. In cases where there was an effect it was a one time effect that simply shifted the trend line of the consumer price index (CPI). To guard against any unforeseen price effects the authorities may consider a tighter monetary policy stance at the introduction of VAT. Distribution effects of VAT Value added tax is widely criticized as being regressive with respect to income that is its burden falls heavily on the poor than on the rich. This emanates from the fact that consumption as a share of income falls as income rises. Hence a uniform VAT rate falls heavily on the poor than the rich. This criticism is valid when VAT payments are expressed as a proportion of current income. However if, following the premise that welfare is demonstrated by the level of consumption rather than income, consumption is used as the denominator the impact of VAT would be proportional. A proportional burden would also be demonstrated if lifetime income rather than current income is used. A lifetime income concept considers the fact that many income recipients are only temporarily at lower income brackets as their earnings increase. In order to address the regressivity of VAT the following measures can be taken: ?The VAT itself can be used to differentiate taxation of consumer items that are consumed primarily by the poor such that they pay less or at zero rate or to tax luxury goods at a higher than standard rate. ?VAT exemptions may also be granted on goods and services that are consumed mostly by the poor. ?Equity concerns may also be addressed through other ways, outside the VAT system, such as other tax and spending instruments of government. This could be in the form of lower basic income tax rates on the poor or some pro-poor expenditures of government. The use of multiple rates of VAT has however been widely discouraged for various reasons. These include: ?The fact that sometimes it is almost impossible to differentiate between higher quality expensive products – e. g. food, consumed by the rich and ordinary products consumed by the poor. Thus any concessions extended may tend to benefit the rich much more than the poor. ?Increased costs of VAT administration as a differentiated rate structure brings with it problems of delineating products and interpreting the rules on which rate to use. ?significantly increased costs of tax compliance for small firms, which are sually unable to keep separate records/accounts for sales of differently taxed items. This results in the use of presumptive methods of determining the tax liability, which leads to more difficulties in monitoring the compliance. The higher compliance cost resultant from differentiation of VAT rates may also be regressive with respect to income since smaller firms w ith lower income tend to bear proportionately more of the burden than do larger firms. Exemptions refer to situations where output is not taxed but taxes paid on inputs are not recoverable. The rationale behind exemptions is to reduce negative distributional effects of tax through the effect on incomes. The effects of exemption may be as follows: ?falling of revenues – exemptions break the VAT chain. If exemptions are granted at prior to the final sale, it results in a loss of revenue since value added at the final stage escapes tax. ?Un-recovered taxation of some intermediate goods may lead to producers substituting away from such inputs thus distorting the input choices of the said producers. ?Exemptions may create incentives to â€Å"self supply† i. e. tax avoidance by vertical integration. Exemptions tend to feed on each other giving rise to a phenomenon called â€Å"exemption creep†. This arises from the fact that each exemption gives rise to pressures on further exemption. For example creating an exemption to reduce the tax burden on a particular commodity or goods may lead to increased pressure for exemption or zero rating of inputs used for the production of such a commodity. Based on the above, it is important that care is taken when introducing exemptions in order to avoid distortions in the production process as well as to minimize revenue loss resulting from such distortions. Given the fact that the primary purpose of VAT is to raise government revenue in an efficient manner and with as little distortions of economic activity as possible, distribution effects are perhaps better addressed by other forms of tax and government expenditure policies which can often be better targeted at these aims. VAT effect on economic growth Economic growth can be facilitated through investment by both government and the private sector. Savings by both parties are required in order to finance investment in a non-inflationary manner. Compared to other broadly based taxes such as income tax VAT is neutral with respect to choices on whether to consume now or save for future consumption. Although VAT reduces the absolute return on saving it does not reduce the net rate of return on saving. Income tax reduces the net rate of return as both the amount saved as well as the return on that saving are subject to tax. In this regard VAT may be said to be a superior tax in promoting economic growth than income tax. Since VAT does not influence investment decisions on firms, by increasing their costs, its effects on investment can be said to be neutral. Features of VAT 1. Rate of Tax VAT proposes to impose two types of rate of tax mainly: a. 4% on declared goods or the goods commonly used. b. 10-12% on goods called Revenue Neutral Rates (RNR). There would be no fall in such remaining goods. c. Two special rates will be imposed– 1% on silver or gold and 20% on liquor. Tax on petrol, diesel or aviation turbine fuel are proposed to be kept out from the VAT system as they would be continued to be taxed, as presently applicable by the CST Act. 2. Uniform Rates in the VAT system, certain commodities are exempted from tax. The taxable commodities are listed in the respective schedule with the rates. VAT proposes to keep these rates uniform in all the states so the goods sold or purchased across the country would suffer the same tax rate. Discretion has been given to the states when it comes to finalizing the RNR along with the restrictions. This rate must not be less than 10%. This will ensure By doing this that there will be level playing fields to avoid the trade diversion in connection with the different states, particularly in neighboring states 3. No concession to new industries Tax Concessions to new industries is done away with in the new VAT system. This was done as it creates discrepancy in investment decision. Under the new VAT system, the tax would be fair and equitable to all. 4. Adjustment of the tax paid on the goods purchased from the tax payable on the goods of sale All the tax, paid on the goods purchased within the state, would be adjusted against the tax, payable on the sale, whether within the state or in the course of interstate. In case of export, the tax, paid on purchase outside India, would be refunded. In case of the branch transfer or consignment of sale outside the state, no refund would be provided. 5. Collection of tax by seller/dealer at each stage. The seller/dealer would collect the tax on the full price of the goods sold and shows separately in the sell invoice issued by him 6. VAT is not cascading or additive though the tax on the goods sold is collected at each stage, it is not cascading or additive because the net effect would be as follows: – the tax, previously paid on the sale of goods, would be fully adjusted. It will be like levying tax on goods, sold in the last state or at retail stage. What's the biggest advantage? The biggest benefit of VAT is that it could unite India into a large common market. This will translate to better business policy. Companies can start optimizing purely on logistics of their operations, and not on based on tax-minimization. Lorries need not wait at check-points for days; they can zoom down the highways to their destinations. Reduced transit times and lower inventory levels will boost corporate earnings. Following are the some more advantage of VAT: – 1. Simplification Under the CST Act, there are 8 types of tax rates- 1%, 2%, 4%, 8%, 10%, 12%, 20% and 25%. However, under the present VAT system, there would only be 2 types of taxes 4% on declared goods and 10-12% on RNR. This will eliminate any disputes that relate to rates of tax and classification of goods as this is the most usual cause of litigation. It also helps to determine the relevant stage of the tax. This is necessary as the CST Act stipulates that the tax levies at the first stage or the last stage differ. Consequently, the question of which stage of tax it falls under becomes another reason for litigation. Under the VAT system, tax would be levied at each stage of the goods of sale or purchase. . Adjustment of tax paid on purchased goods Under the present system, the tax paid on the manufactured goods would be adjusted against the tax payable on the manufactured goods. Such adjustment is conditional as such goods must either be manufactured or sold. VAT is free from such conditions. 3. Further such adjustment of the purchased goods would depend on the amount of tax that is payable. VAT would not have such restrictions. CST would not have the provisions on refund or carry over upon such goods except in case of export goods or goods, manufactured out of the country or sale to registered dealer. Similarly, on interstate sale on tax-paid goods, no refund would be admissible. 4. Transparency The tax that is levied at the first stage on the goods or sale or purchase is not transparent. This is because the amount of tax, which the goods have suffered, is not known at the subsequent stage. In the VAT system, the amount of tax would be known at each and every stage of goods of sale or purchase. 5. Fair and Equitable VAT introduces the uniform tax rates across the state so that unfair advantages cannot be taken while levying the tax. 6. Procedure of simplification Procedures, relating to filing of returns, payment of tax, furnishing declaration and assessment are simplified under the VAT system so as to minimize any interface between the tax payer and the tax collector. 7. Minimize the Discretion the VAT system proposes to minimize the discretion with the assessing officer so that every person is treated alike. For example, there would be no discretion involved in the imposition of penalty, late filing of returns, non-filing of returns, late payment of tax or non payment of tax or in case of tax evasion. Such system would be free from all these harassment 8. Computerization the VAT proposes computerization which would focus on the tax evaders by generating Exception Report. In a large number of cases, no processing or scrutiny of returns would be required as it would free the tax compliant dealers from all the harassment which is so much a part of assessment. The management information system, which would form a part of integral computerization, would make the tax department more efficient and responsive. Value Added Tax IN Maharashtra Quick Flash Back Sales tax was first introduced in India in the then Bombay Province as early as March 1938 where a tax was imposed on sale of tobacco within certain urban and suburban areas. In the year 1946, a general sales tax was introduced levying sales tax at the last stage of sale of goods. The Bombay Sales Tax Act, 1959 introduced in 1959 underwent many changes thereafter and in July 1981, first point tax was introduced wherein goods were classified into three main schedules, broadly covering tax free goods, intermediate products and finished goods. The BST Act was repealed and Maharashtra Value Added Tax Act, 2002 came into force w. e. f. 1st April, 2005 to usher in the progressive value added tax system in place of the old sales tax system. VAT is a progressive and transparent system of taxation which eliminates the cascading impact of multiple taxation through a multipoint taxation and set-off principle. It promotes transparency, compliance and equity and therefore, is both dealer friendly and consumer friendly. VAT being a multi point tax, envisages an increase in the number of dealers and is based on the concept of self-assessment and self-compliance. It is therefore, inevitable that the Sales Tax Department transforms itself into a dealer friendly, focused and dynamic department to cater to the ever increasing expectations of both the Government and the Trade & Industry. Sales Tax Department has taken up the challenge to transform their selves and be available for assisting the dealers in complying with the provisions of the law. They are in the process of installing a state-wide networked IT system to computerise entire tax administration and hope to provide online service to the dealers in due course. They are also realigning their organisational structure to meet the challenges of the new system and stakeholders' expectations. Part1 – Introduction Background Maharashtra is one of the 21 States which have introduced the Value Added Tax (VAT) system of taxation from 1st April 2005. With the introduction of VAT, the Sales Tax Department has moved to a globally recognized sales taxation system that has been adopted by more than 130 countries. The design of Maharashtra State VAT is generally guided by the best international practices with regard to legal framework, as well as operating procedures. Another key factor in preparation of the design of State level VAT is the national consensus on certain issues. The consensus has been arrived at through the discussions in the Empowered Committee of State Finance Ministers on implementation of State level VAT. On 1st April 2005, VAT replaced the single point sales tax. Single point sales tax had a number of disadvantages, primarily that of double taxation. VAT is a modern and progressive taxation system that avoids double taxation. In addition to offering the possibility of a set-off of tax paid on purchases, VAT has other advantages for both business and government. It eliminates cascading impact of double taxation and promotes economic efficiency. It is primarily a self-policing, self-assessment system with more trust put on dealers. It provides the potential for a stronger manufacturing base and more competitive export pricing. It is invoice based, and as a result it offers a better financialsystem with less scope for error. It has an improved control, mechanism resulting in better compliance. It widens the, tax base and promotes equity. VAT in Maharashtra is levied under a legislation known as the Maharashtra Value Added Tax Act (MVAT Act), supported by Maharashtra Value Added Tax Rules (MVAT Rules). VAT is levied on sale of goods including intangible goods. The meaning of â€Å"goods† for VAT purposes â€Å"Goods† means every kind of moveable property including goods of incorporeal and intangible nature but there are some exclusion, such as newspapers, actionable claims, money, shares and securities and lottery tickets. Businesses engaged in. the buying and selling of goods within the scope of the VAT law are referred to as dealers. The meaning of ‘sale' for VAT purposes A transaction of sale can be a: normal sale of goods; sale of goods under hire-purchase system; eemed sale of goods used I supplied in the course of execution of works contract; deemed sale of goods given on lease. The rate of tax applicable to the goods sold under various classes of sales is uniform. However, in respect of normal sales of goods and deemed sales of goods under works contract and specified deemed sale of goods given on lease, the Act provides for an optional method for dischar ging tax liability by way of composition. Being so, the tax liability has to be determined with reference to the option exercised by the dealer for discharging tax liability. Businesses covered by VAT The VAT system embraces all businesses in the production and supply chain, from manufacture through to retail. VAT is collected at each stage in the chain when value is added to goods. 1t applies to al1 businesses, including importers, exporters, manufacturers, distributors, wholesalers, retailers, works contractors and lessors. Part 2 – Registration under VAT Rules for registration If a dealer's annual turnover exceeds the below mentioned threshold, then it must register with the local office of the Sales Tax Department. All Figures in Rs. Category Annual Turnover of Sales Turnover of sales or purchase of taxable goods not less than Fees payable on registration Importer 1,00,000 10,000 100 Others 5,00,000 10,000 100 If the dealer's turnover is less than the above threshold, then they are not liable to collect and pay VAT. However, if a dealer wishes to avail the benefits of being a registered dealer, then they may apply for voluntary registration by paying a fee of Rs. 5,000/ -. Benefits of being a registered dealer As a registered dealer, they are entitled to: ollect VAT on the sales; claim set-off of tax (input tax credit) paid on purchases; Issue tax invoices and, be competitive. Effective date of registration The effective date of registration, that is, the date front which a dealer may charge VAT on sales; will depend on the date they first become liable to pay VAT. This date will be determined as follows: a) New businesses: If a dealer is not registered because their annual turnover is less tha n the threshold; their liability to account for VAT starts from the date they cross the threshold. ) Existing businesses: If a dealer took over an existing business that is registered for VAT, then they will be liable to pay tax on sales from the date they took over the business. c) Voluntary registration: If a dealer is registered on a voluntary basis, then he will be liable to account for VAT from the date shown on the certificate of registration. d) Late registration: If a dealer's turnover has exceeded the appropriate threshold but they have applied late for registration, then he can charge VAT on his sales only after they are registered, i. e. from the date shown on the certificate of registration. Further, having crossed the threshold, it is an offence to be engaged in business as a dealer without a certificate of registration Certificate of registration A dealer should prominently display the certificate and hologram, or a copy of the certificate and hologram, at each place w here they carry can on their business. If a dealer has more than one place of business, then Sales Tax Office will provide them, upon their request, one copy of the certificate of registration and hologram for each additional place of business. If a dealer loses his / her certificate of registration or hologram, or it is accidentally destroyed or defaced, then they may obtain a duplicate copy of the certificate of hologram from their sales tax office. The certificate of registration and hologram is personal to the dealer to whom it is issued and is non-transferable. Changes to business circumstances If, following dealer register, there are any amendments to the details they can be reported while applying for registration, it must done within 60 days of the change, inform us in writing. Where the amendment involves a: change in the name of the business; hange in the constitution of the business without dissolution of the firm; change in the trustees of a Trust; change in the guardianship of a ward; change in the Karta of a Hindu Undivided Family; conversion of Private limited Company to a Public limited Company; change in the place of business; addition of new place of business; formation of a partnership with regard to the business, an application made by a dealer for insolvency or liquidation of their business; an application made against dealer's business for insolvency or liquidation; opening or closing of a bank account; A dealer will not need to make a fresh application for registration. However, the communication to the Registering Authority concerned should be made within sixty days of the change or occurrence of the event. Cancellation of registration A dealer will be liable to pay VAT while their registration is effective. If however, their turnover falls below the threshold, he may choose to apply for cancellation of his registration. However, he should continue to collect and pay VAT in the normal way until his registration is formally cancelled. Alternatively, they may be allowed the registration to continue. If a dealer: discontinue the business; dispose of or sell or transfer the business; A dealer must inform the Sales Tax Department within 30 days of the event. In case of disposal or sale of business, their successor will need to apply for a fresh registration certificate. For cancellation of registration a dealer should submit form 103 which is available with the local sales tax office. It can also be downloaded from the website www. vat. maharashtra. gov. in If the Sales Tax Department cancels the dealer's registration, they must return the Certificate of Registration The cancellation of their certificate does not affect their liability to pay any tax, interest or penalties in respect of any period prior to the date of cancellation of their registration. The obligations of a registered dealer Following are the registration, which dealer's are obliged to: display prominently their certificate of registration and hologram in their place of business, and a copy of the certificate and hologram in each of the other places where they carry on their business; inform their sales tax office of any changes in the details previously reported to the sales tax office; collect VAT on all sales at appropriate rates; alculate the tax due and submit correct, complete and self consistent returns and pay the amount of tax due on or before the due dates; issue tax invoice / bill or cash memorandum to all customers; maintain adequate records and retain them for a period of five years from the end of the tax year to which they relate; extend co-operation to the officer s of the Sales Tax Department at dealer's business premises and provide all assistance to them to discharge their duties. Part 3 – Explaining VAT How VAT works When a dealer sell goods, the sale price is made up of two elements; the selling price of the goods and the tax on the sale. The tax is payable to the State Government. The tax payable on sales is to be calculated on the selling price. The tax paid on purchases supported by a, valid tax invoice is generally available as set-off (input, tax credit) while discharging the tax liability on sales. Example The following example shows how the VAT works through the chain from manufacturer to retailer. Company A buys iron ore and other consumables and manufactures stainless steel utensils; Partnership firm B buys the utensils in bulk from Company A and polishes them; shopkeeper C buys some of the utensils and purchases packing, material from vendor D, packages them and sells the packed utensils for the public. (The sale and purchase figures shown in the example are excluding tax) Particulars Amount (Rs. ) VAT @ 4% (Rs. ) Company A Cost of iron are and consumables 50,000 2000 Sales of unpolished stainless steel utensils 1,50,000 Value added 1,00,000 Company A is liable to pay VAT on Rs. 1,50,000/- @ 4% 000 Less Set Off (2000) Net VAT amount to pay with the Return (Note: Tax invoice issued by Company A will show sale price as Rs. 1,50,000/- tax as Rs. 6,000/-. Therefore, the total invoice value will be Rs. 1,56,000/-) 4000 Partnership B Purchases unpolished stainless steel utensils. 1,50,000 Sales polished stainless steel utensils 1,80,000 Value added 30,000 Partnership B is liable t o pay V AT on Rs. 1,80,000 at 4% 7,200 But can claim set off of tax paid on purchases (6,000) Net VAT amount to pay with the Return 1200 Shopkeeper C Purchases polished stainless steel utensils 1,80,000 Packing material 5,000 Total Purchases 1,85,000 Sales 2,25,000 Value added 40,000 Shopkeeper C is liable to pay V AT on Rs. 2,25,000 @ 4% 9,000 Set off of tax paid on purchases (Rs. 7,200 + Rs. 200 of packing material) 7,400 Net VAT amount to pay with the Return 1,600 Vendor D Tax paid costs Nil Sales 5,000 Value Added 5,000 Vendor D is liable to pay VAT on Rs. 5,000 @ 4% 200 The VAT due on the value added through the chain, i. e. , 4% on Rs. 2,25,000 is : 9,000 The State Government received the tax in stages. The payments of tax were as follows: Particulars Amount (Rs. ) Suppliers of Company A 2,000 Company A 4,000 Partnership B 1,200 Shopkeeper C 1,600 Vendor D 200 Total 9,000 Thus, through a chain of tax on sale price and set off on purchase price, the cascading impact of tax is totally eliminated. Since set-off of tax on purchases is given only on purchases from registered dealers where tax is collected separately, dealer's purchases from unregistered dealers, imports, inter-state purchases and purchases from registered dealers without separate tax collection are not entitled to set-off. In practice, the tax is finally borne by the ultimate consumer, who is not a registered dealer, in this case, people who buy utensils from the shopkeeper C. Rates of value added tax There are two main rates of VAT 4% and 12. 5%. The goods are grouped into five schedules as under: Schedule Rate of tax Illustrative Items A 0% Vegetables, milk, eggs, bread B 1% Precious metals and precious stones and their jewellery C 4% Raw materials, notified industrial inputs, notified information technology products and a few essential items D 20% and above Liquor, petrol, diesel etc E 12. 5% Other than items specified in schedules A, B, C & D. (The list is illustrative and not exhaustive. Please refer to the schedules for details) Difference between tax free goods and exempt sales It is sometimes confusing to have goods that are tax free and sales that are exempt. Both result in no VAT being charged, so what is the difference? Tax free goods do not attract tax at any stage of sale or in any type of transaction, whereas, exempted sales are certain types of transactions, viz. , export sales which are exempt from tax. Composition schemes Certain dealers may find it difficult to keep detailed records for claiming set-off. For such dealers, a simpler and optional method of accounting for VAT has been introduced. This method is the composition scheme. It may be noted that composition scheme is not meant to be a tax concession scheme but only a simplification of tax calculation and payment system. Tax payable by dealers opting for composition in lieu of VAT The following classes of dealers are eligible for option to pay tax under composition: Resellers selling at retail, i. e. , to consumers, Restaurants, eating houses, hotel (excluding hotels having gradation of ‘Four Star' and above), refreshment rooms, boarding establishments, clubs and caterers, Bakers, Dealers in second-hand passenger motor vehicles and Works contractors Dealers engaged in the business of providing mandap, pandal, shamiana. Accordingly, if the dealer has opted for payment of tax liability under composition, the tax liability has to be determined in terms of the guidelines given in the relevant Notification in this regard. Apart from the terms and conditions governing each of the composition schemes, the Notification explains the methodology for computation of turnover liable to tax and the rate of composition payable. A dealer can opt for the composition option at the beginning of the financial year and has to continue to be a composition dealer at least till the end of that financial year. If dealer wishes to switch, over to normal VAT, he can do so only at the beginning of the next financial year. However, a new dealer can opt for composition at the time of registration. In respect of works contract, the contractor can choose to discharge tax liability under composition option. Moreover, such an option can be exercised by the contractor on contract to contract basis. Part 4 – Calculating tax liability In, order to calculate how much tax a dealer has to pay, he must, first determine his turnover of sales and turnover of purchases. The second stage is to ascertain the amount of tax due for payment. Calculating turnover of sales and purchases The turnover of sales is the total of the amounts received or receivable (excluding VAT charged separately) in respect, of the sale of goods, less the amount refunded to a purchaser in respect of goods returned, within six months of the date of the sale. Similarly, the turnover of purchases is the total of the amounts paid or payable (excluding VAT charged separately) in respect of the purchase of goods less (the amounts repaid to dealer in respect of goods they return, within six months of the date of purchase. Credit notes and debit notes. If the sale price, or the purchase price, of any goods is varied and either a credit note or a debit note is issued, then the credit note or the debit note, as the case may be, should show separately, the tax and the price. be accounted for in the period in which the appropriate entries are made in their books of accounts. Special cases Auctioneers If dealer is an auctioneer, then they must include in their turnover, the price of the goods they auction for their principal Hotels There are special rules for hotels and other establishments that provide boarding and lodging for an inclusive amount. The rules provide a formula to enable them to calculate their turnover of sales for meals (food and beverages) which they provide. The supply of food in a restaurant also includes an element of service. But the full amount charged is the sale price for the purposes of calculating turnover and tax. Works contracts VAT applies only to the sale of goods. Supply of services is not liable to VAT. Works contracts are deemed sales where both, goods and services are provided in a transaction and cannot be separated. A works contract may involve the creation of immoveable property, e. g. a house, a factory or a bridge. Some other examples of works contracts are photography, repairs & maintenance etc. To calculate the amount a dealer should include it in their turnover of sales, so that they may deduct it from the total contract price, the costs of labour and service charges. amount paid to sub-contractors. charges for planning and designing, and any architect's fees. hiring charges for machinery and tools. cost of consumables, such as, water, gas and electricity. Dealer's administrative costs relating to labour and services and any other similar expenses. any profit element that relates to the supply of labour and services. Alternatively, in lieu of the deductions as above, a dealer may choose to discharge the liability arising on works contracts by referring to the table prescribed in the rules. If the dealer finds that it is too complicated to calculate the deductions, then they may opt for a composition scheme for any works contract. Sales and purchases not liable to tax under VAT The VAT law specifically excludes from value added tax all imports, exports and inter-state transactions. These transactions are covered by the CST Act. Similarly, transactions that take place outside Maharashtra are not within the scope of MVAT Act. Point of levy in certain cases Hire purchase Where there is a hire purchase agreement or an agreement for sale by installments, the date of the sale is deemed to be the date of the delivery of goods. This is despite the fact that legal ownership of the goods only passes to the buyer after payment of the final installment. If the hire-purchase agreement specifies the interest component then in calculating the sales price, dealer should disregard the interest component included in the agreement. Calculating the amount of VAT due on sales Dealer should also make some adjustments to the total turnover of sales to arrive at the amount on which tax is due. From the total sales one should deduct the total of exports and inter-State sales. the total of sales of goods that are tax free, and branch / consignment transfers to locations in Maharashtra as well as other States. the tax collected. To calculate the tax due, dealer should start allocating their turnover of sales in the return period (net of the above deductions) to the rates of tax they have been charged. They should also ensure that the correct tax rates are applied. The information should be readily available from their records. This gives the total of sales tax due. Calculating the turnover of purchases Records will provide the total figure, but they may not have paid VAT on all their purchases. They must now deduct the total value of imports from out of India. inter-State purchases. purchases of tax free goods. direct purchases from exempted units under the Package Scheme of Incentives. consignment transfers, and local purchased from unregistered dealers. local purchases from registered dealers not supported by tax invoice. The resulting figure represents purchases against tax invoices from registered dealers. Calculating the amount of set off due (VAT paid on purchases) This s the next stage of tax calculation. At this stage VAT is charged on total purchases. Dealer must, however, make some adjustments to this amount for, in certain cases, the full set off of the VAT paid on purchases is not available. Adjustments to tax available for set off If dealer's purchases include goods, used as fuel, or for the manufacture of any tax-free goods, or as packaging for tax-free goods, this go ods should be sold. Then a dealer must calculate the value of those items and deduct tax @ 4% of the corresponding purchase price from the amount otherwise available for set off. Not applicable to PSI dealers other than the New Package Scheme of Incentives for Tourism Projects, 1999 and also to manufacturers of tax-free sugar or fabrics covered by Entry A 45 and where such goods are sold in the course of export falling under section 5 of the CST Act, 1956). Similarly, if the goods are stock transferred by way of branch / consignment transfer to a place outside the State, deduct tax @ 4% (1 % in respect of goods covered by Schedule B) of the corresponding purchase price from the amount otherwise available for set off. Dealer must also make further adjustments as follows: – If they have been used any goods (other than capital assets) as part of a works contract for which they have been opted for payment composition @ 8% on the total contract value, they must also deduct 36% of the amount from the set off otherwise available (4% of purchase price in respect of construction contracts for which they have been opted for payment of composition @ 5% on total contract value). Where a dealer's sales are less than 50 % of their gross receipts, then they can claim set off only on those purchases of goods or packing materials effected in that year where the corresponding goods are sold within six months of the date of purchase or consigned within the said period to another State by way of stock transfers. In respect of office equipment, furniture or fixtures which have been treated as capital assets, a dealer should reduce set-off otherwise entitled by an amount equal to 4% of the purchase price. If a dealer is the retailer of liquor vendor and its actual sale prices are less than the Maximum Retail Price, there is a special formula for calculating the amount of the adjustment. Effectively this means that, if a dealer sells at 75% of the MRP then they can claim set off only to the extent of 75% of the tax paid. A dealer can not claim any set off for the tax paid on any purchases that remain unsold on the date when business discontinues. All this information should be available from their records, including tax invoices and bills or cash memorandum they have issued, and the tax invoices they have received. Set off not available There are various items on which set-off is not available such as, goods of incorporeal or intangible character other than those specified, passenger motor vehicles, motor spirits, crude oil, building material used for construction etc. Conditions for claiming set off A dealer can claim set off only for VAT paid on purchase if they have a valid tax invoice for that transaction and they had maintain account of purchases showing the specified details. Tax payable The amount of set-off admissible can be adjusted against tax payable. The amount of net tax payable is the total of sales tax collected on sales less the set-off available. Refund cases If the amount of set-off admissible during the period is more than the amount of tax payable, then dealer's return would reflect a balance refundable to the dealer. The amount of set-off can be more than the tax payable for a variety of reasons, such as Inputs are taxable at higher rate as compared with the rate of tax on output. Outputs are tax-free goods while inputs carry tax. Outputs are export sales. Outputs are CST sales which are taxable at the concessional rate of CST. Manufactured goods or trading goods are transferred to branches outside the State or are sent on consignment transfers. Apart from part of the admissible set-off which can remain unutilized, excess credit can be on account of: unutilised portion of tax deducted at source or refund payment order or ad-hoc payment made is more than tax payable. Whatever may be the reason for credit in excess of tax due and payable during a tax period, dealers are eligible to claim refund of such excess credit. For the purpose of granting refund, dealers have been classified under two categories viz. a) specified class of dealers and b) other dealers Refund to specified class of dealers Specified classes of dealers are : – Exporters exporting out of the country or dealers selling to an exporter against form H. A unit set-up in SEZ or STP or EHTP or a 100% EOU unit. These units have to be certified by the Commissioner of Sales Tax. An Entitlement Certificate holder availing of the benefit ofincentives under the Package Scheme of Incentives (PSI). Specified class of dealers and the dealers who have made a sale in the course of inter-State trade or commerce and in the return he has shown any amount to be refundable are eligible to claim refund in each of the returns filed by them. Full amount of excess credit can be claimed as refund due for the return period. The dealer eligible to claim refund has to file refund application in Form 501. The application has to be filed with the Refund Branch. The Refund Branch may ask for Bank Guarantee and any relevant information for checking correctness of refund claimed. Normally, refund would be granted within one month from the receipt of Bank Guarantee or within three months from the date of receipt of refund application in Form 501, or as the case may be, the date of receipt of the additional information, whichever is later. Refund to other dealers Other dealers are not eligible to get refund in each of the return filed. They are required to carry forward excess credit to the next return within the same financial year and claim refund of excess credit in the return for the period ending March. The dealer claiming refund in March return has to make refund application in Form 501. The application has to be filed with the Refund Section. Normally, refund would be granted within six months of the end of the year to which the return relates. However, refund would be granted within six months to the new dealer's at the end of the year succeeding the said year. Audit of refund claims The refund granted to dealer would be subject to audit by the Refund Audit Section. The audit may be taken up before granting the refund or after the refund is granted. Normally, refunds made against Bank Guarantee would be taken up for audit after the refund has been granted. During the course of the audit, the audit team will check dealer's eligibility to claim refund and the correctness of the amount of refund claimed by them. Interest on delayed refund No interest is payable on the refund due to a dealer as per returns filed by a dealer. However, if granting of refund is delayed beyond the above mentioned periods, dealer is eligible for interest for delayed payment. Simple interest at the rate of 6% per year would be payable for the period from the due date to the date of refund. Some tips for getting timely refund Dealer's claim of refund would be processed faster if: – They had filed the return with the Returns branch as per the prescribed time schedule. The return filed by the dealer's should be correct, complete and self-consistent. They should have claimed refund as per the appropriate periodicity. The amount of refund due to them should be computed correctly. Refund application in Form 501 is filed with the Refunds branch in time. They should have promptly furnished Bank Guarantee and other details when called for. They should keep ready all the documents and records for audit. They should file the return for a period for which they are required to file. Thus, if they are required to file a quarterly return, but they file a monthly return, then the refund would not be granted for the monthly return. In order to be eligible for refund, they would have to file a quarterly return. Part 5 – Filing a return and paying the tax VAT is a self-assessment system and dealer's are expected to make self assessment for a given tax period and declare their VAT liability by filing returns. The returns have to be filed in the prescribed form and by the specified dates. Further, they are also required to pay the tax due as per the return filed. In Maharashtra, return form is return-cum-chalan. As such, filing of returns along-with payment of tax on or before the due date at the notified bank would be considered as sufficient compliance. However, where any amount of tax including interest or penalty is due as per a fresh or revised return, then they should first pay such amount in Government Treasury and file the return in the local office of Sales Tax Department along with a self attested copy of the chalan. If no payment is due or a refund is claimed as per the return, they are also required to file the return in the local office of the Sales Tax Department. Return forms The return forms prescribed are as follows. Form No. To Be Used By 221 All VAT dealers other than dealers executing works contract, dealers engaged in leasing business, composition dealers (including dealers opting for composition only for part of the activity of the business), PSI dealers and notified Oil Companies. 222 All composition dealers whose entire turnover is under composition (excluding works contractors opting for composition and dealers opting for composition only for part of the activity of the business). 223 VA T dealers who are also in the business of executing works contracts, leasing and dealers opting for composition only for part of the activity of the business. 224 PSI dealers holding Entitlement Certificate (Transactions by PSI dealers relating to the business of executionof works contracts, leasing, frading and composition only for part of the activity of the business to be included in a separate return in Form 223). 25 Notified Oil Companies (Transactions by OIL Companies relating to the business of execution of works contracts, leasing and composition only for part of the activity of the business to be included in a separate return in Form 223). A dealer can refer to the instructions given in the form before filling the return. Please ensure that the return for a tax period c overs all the transactions of sales, purchases, branch transfers received, branch transfers made etc. Further, they must ensure that all the columns of the return are duly filled in and are clearly legible. If a particular column is not relevant, please do not leave it blank but mention† not applicable†. The return filed by them must be correct, complete and self-consistent. Time schedule for filing returns Periodicity of filing returns is as follows: – Retailers who have opted for composition should file six-monthly returns. Newly registered dealers should file quarterly returns until the end of the year in which they first register. All package scheme dealers should file quarterly returns. All other dealers should file returns as given below :- Dealers whose tax liability in the previous year was less than Rs. 1,OO,OOOj- (Rs. 1lakh) or whose entitlement for refund was less than Rs. 10,OO,OOOj- (Rs. 10lakh) should file six-monthly returns. Dealers whose tax liability in the previous year was more. than Rs. 10,00,000- (Rs. 10lakh) or whose entitlement for refund was more than Rs. l,00,00,000- (Rs1crore) should file monthly returns. All other dealers should file quarterly returns. Filing and payment dates for return-cum-chalan are as follows: Return Frequency Filing / Payment date Monthly 21 days from the end of the return period Quarterly 21 days from the end of the return period Six Monthly 21 days from the end of the return period Scrutiny of returns filed The return filed by the dealer should be correct, complete, and self-consistent in every respect. The Sales Tax Office will check the return to ensure that there are no obvious errors in consistencies or contradictions in calculations. If this check reveals discrepancies, then the dealer's will be advised and invited to submit a fresh return. The department will issue this defect notice within four months of receiving their return. Then they should file their fresh return within 30 days of the notice. If they fail to do so, it will be deemed not to have filed the return within the time allowed, and will so liable to a penalty charge. At the same time, as the department issues the defect notice, dealers will be sent a ‘show cause' notice, explaining that a penalty may be imposed. Offences relating to filing of returns and payment of tax The following are the offences liable for interest / penalty / prosecution etc. Short- payment / non- payment of tax due Failure to file returns Delay in filing returns Knowingly furnishing false returns Filing of incorrect or incomplete or inconsistent returns Consequences for filing a return, which is not correct, complete and self-consistent Each of the returns filed by them is checked to confirm that the same is correct, complete and self-consistent. In case the return is defective, a defect notice is issued by the Returns Branch pointing out the error or the omission. On receipt of the notice, it is required to file fresh return which is correct, complete and self-consistent and should also pay differential tax due, if any. The return filed by them in response to defect notice is termed as Fresh Return and the dealer should indicate so on the return in the space provided for the same. Fresh return rectifying the defects has to be filed within the time limit specified in the defect notice. Failure to comply with the notice would be construed as non-filing of return and consequently, a unilateral (ex-parte) assessment order would be passed. Failure to file a return If dealer's fails to file a return within the time allowed, then they are committing an offence and, in addition to any tax and interest that may be due, which is liable to a penalty. As no return has been filed by them, a unilateral assessment without giving them a notice will be made. This unilateral assessment order is non-appealable. However, they can get this assessment order cancelled only by filing the return and paying the tax and interest due as per the return. For this purpose they should file application in Form 304 and submit to Returns Branch. Paying the tax due All the dealer's or the person must file their return and should pay the tax due, in a bank that is authorized to accept the return. If they are required to file a revised return, and the tax due exceeds the amount which they had paid when submitted earlier form, then they should pay the balance amount which is due now. The bank will give them an acknowledgement of the receipt of their return and payment. If there is any doubt that where to file the return and pay the tax due, then can ask to their local sales tax office. Revised return Subsequent to filing the return, in case dealer notices any error or omission, then they can file a revised return before expiry of eight months from the end of the financial year to which the return relates or before a otice for assessment is served, whichever is earlier. Such return should be accompanied by payment of tax and interest, if any. In case the return filed by them is a revised return, then they should indicate it on the return form in the space provided for the same. The various types of returns and their description have been summarised as under: Type Of Return Descr iption Original The return filed by the dealer originally along with the payment in the bank. Fresh The return filed by the dealer after the department issues a defect notice. Revised The return filed by them to correct any error or omission. Filing of returns in special cases The first return for the newly registered dealer is for the period up to the end of the quarter containing the date of its registration. Example 1 The turnover exceeds the threshold on 1st November. Then they should apply for registration, which is granted on 30th November and the date of effect is 1st November. The first return is for the quarter ended 31st December covering the period 1st, April to 31st December; and the second return is for the quarter ending following 31st March. Example 2 If turnover exceeds the threshold on 1st November. But dealer apply late for registration i. e. on 10th December, and the registration is granted on l0th December, then the date of effect registration is 10th December i. e. , Date of application. The first return is due for the quarter ending on 31st December (covering. the period 10th December to 31st December).. Filing of return in case of cancellation of registration Dealer's registration may be cancelled if they discontinue, transfer or sell the business. They may also choose to cancel their registration if their turnover falls below the threshold limit. Example If dealer's file the returns quarterly and their, last return was for the quarter ending 30th September. If a dealer closes the business on 15th November, then their final return will be for, the period 1st October to 15th November. The return should be filed within one month, that is, before 15th December. Dealer under the Package Scheme of Incentives If dealer's hold a Certificate of Entitlement granting an exemption from payment of tax or deferment of payment of tax, it should be for the unit which is eligible for the incentives, file a quarterly return, in Form 224. They must continue to file quarterly return till the Certificate of Entitlement remains valid. When the validity of the Certificate of Entitlement ends, then dealer must file: – a quarterly return, in form 224, for the period from the first day of the quarter in which the event occurs to the date the Certificate of Entitlement ceases, and a quarterly return, in form 221 or 222 or 223 as the case may be, for the remainder of that financial year. For succeeding years, the period and frequency of the returns will be determined on the basis of the tax liability or entitlement for refund of the preceding financial year. Filing multiple returns Dealers are required to file a single return at its principal place of business for all its businesses or places of business. If they desire to file separate returns for separate places / divisions, then they must apply for Form 211 for permission to file multiple returns. Dealer should ensure that correct, complete and self-consistent returns are filed at all the locations in the State. Tax deduction at source by an employer in a works contract The works contractor is obliged to pay the tax on the works contracts executed by him. However, the employer i. e. he notified person who has engaged the works contractor is obliged to deduct tax at the specified rate from the amount payable to the works contractor, excluding the amount of tax, if any, separately charged or service tax levied by the contractor.. The tax amount so deducted and paid to the Government treasury IS considered as a payment made on behalf of the works contractor. The employer is required to d eposit this tax and issue a certificate of tax deduction at source in the prescribed format based on which the works contractor is allowed to take the credit of the same while discharging his tax liability. Part 6 – Records and accounts Keeping records Proper records are an essential part of effective management and control of their business. Dealers are required by law to keep a true and accurate account of the transactions effected by them. This will also help them to correctly quantify their tax liability or refunds, as the case may be. They should keep all their accounts, registers and documents relating to their stocks of goods, purchases, sales and deliveries of goods, at their place of business. If they wish to keep them at a different location they may do so, but only if they have the permission of the Commissioner of Sales Tax. Nature of records Normally, this department will not expect them to keep any special records for VAT purposes. However, the records that they do keep should have sufficient details to enable them to correctly calculate the amount of VAT due for payment and file their return. If Sales Tax Office happens to find that their records are not properly maintained, then they will issue a notice, informing dealers about what records they must keep. A dealer should maintain the following records: – to identify the nature and value of goods purchased and sold; distinguish between – local sales, interstate sales & exports. local purchases, interstate purchase & imports. ndicate value of – sale and purchase of tax free goods. sales exempted from tax. purchases from URD. rate-wise purchases & sales. local purchases from registered dealer with VAT shown separately. record payments for the purchases and sale of goods in cash book / bank book. include a summary of VAT paid separately on purchases, VAT charged on sales, VAT paid to the State treasury and VAT refundable / refunded to the dealers. contain adequate proof that goods have been exported or imported; be supported by invoices for all goods purchased, and copies of invoices, and bills or cash memoranda, issued for goods sold. Tax invoices and memoranda of sales or purchases As a registered dealer, they should issue a tax invoice when they sell goods to another registered dealer and charge VAT. For sales made to consumers and unregistered dealers, they must issue a tax invoice, or a bill or cash memorandum. However, if a dealer is a composition dealer other than a works contractor, they must issue a bill or cash memorandum only and not a tax invoice. Failure to issue a tax invoice or a bill or cash memorandum may result in a penalty. The tax invoice must contain: – he words ‘Tax invoice', printed in bold letters at the top or at a pro

Google Hacking

Google Hacking Abstract: Google hacking is the term used when a hacker tries to find vulnerable targets or sensitive data by using the Google search engine. In Google hacking hackers use search engine commands or complex search queries to locate sensitive data and vulnerable devices on the Internet. Keywords: hacking, hack, Google, Google hack, hacking techniques, attack, ethical hacking, search engines, search engine hacking What is Google Hacking? Google hacking is the term used when a hacker tries to find vulnerable targets or sensitive data by using the Google search engine. In Google hacking hackers use search engine commands or complex search queries to locate sensitive data and vulnerable devices on the Internet. Although Google hacking techniques are against Google terms of service1 and Google blocks wellknown Google hacking queries, nothing can stop hackers from crawling websites and launching Google queries. Google hacking can be used to locate vulnerable web servers and websites which are listed in the Google search engine database. In other words, hackers can locate many thousands of vulnerable websites, web servers and online devices all around the world and select their targets randomly. This kind of attack is most commonly launched by applying Google hacking techniques to satisfy junior hackers. It is obvious that the Google hacking procedure is based on certain keywords, which could be used effectively if they are used by some internal commands of the Google search engine. These commands can be used to help hackers narrow down their search to locate sensitive data or vulnerable devices. Nevertheless, the success of Google hacking techniques depends on the existence of vulnerable sites, servers and devices. However, we should not ignore the power of the search engines in providing information about the targets to the hackers in the reconnaissance phase. Beyond Vulnerability Malicious hackers can use Google hacking techniques to identify vulnerable sites and web servers for known vulnerabilities. In addition, they can look for error pages with the help of technical Page 1 of 8 nformation or retrieve files and directories with sensitive contents such as databases, passwords, log files, login pages or online devices such as IP cameras and network storage. Google Proxy Hackers can use the Google Translate service (http://translate. google. com/translate_t) as a proxy server to visit a website or translate the contents of the website or URLs without leaving any footprints. Figure 1: Google Translate Service. Google Cash Google copies the content of a website in its databa se. This function helps users to access the content of the website if the site is not available. However, a hacker can use this function to access and visit a targeted website without leaving any footprint and in complete anonymity. Figure 2: The red cycle indicates the link to access the Cached page. Page 2 of 8 Directory Listings Web server applications such as Apache and IIS provide facilities that a user can browse and navigate website directories by clicking on the directory name and links such as Parent Directories. The directories and their content can be listed if directory listing or directory browsing are enabled by the administrator. This vulnerability gives an unauthorized access to the files and it may help hackers to gain access to the information which can help them to hack a website or a web server or download its contents. Directory listings make the parent directory links available to browse directories and files. Hackers can locate the sensitive information and files just by simple browsing. In Google it is easy to find websites or web servers with enabled directory listings because the title of the pages start with the â€Å"index of† phrase so we can use index of in the search box to find the directory listings-enabled website. If we want to get better result from our search we can use this combination in the search box intitle:index. of or we can use intitle:index. of â€Å"Parent Directory†. Figure 3: The result of using intitle:index. of â€Å"Parent Directory†. It is obvious that with the first command we used the Google search engine to search in its database for the websites which have been listed with the title of â€Å"Index of†. In the second command we used Google to search for sites with the directory listings and with the keyword which is often found in the directory listings. Specific Directory Hackers can locate specific directories by using the directory name in their search queries. For instance to locate an â€Å"admin† directory in addition to directory listings, the hacker can use these commands: intitle:index. of. admin or intitle:index. of inurl:admin. Page 3 of 8 Figure 4: The result of using intitle:index. of. admin. Specific File It is possible to search for a certain file by directory listings. For instance, to search for the password. mdb file, this search query can be used: intitle:index. of password. mdb . Figure 5: The result of using intitle:index. of. password. mdb. Specific File Extension Google lets users search its database for a specific file extension by using the filetype: command. For instance, if you want to search for pdf files, then you can use the query filetype:pdf in the search box. Server Information It is possible to use Google hacking techniques to determine the version of the web server application along with directory listings. This kind of information is vital to an attacker because it will  © Ali Jahangiri www. alijahangiri. rg Page 4 of 8 help him or her to use the best way to attack the web server. For instance, hackers can use the search query intitle:index. of â€Å"server at† to find the web sites with vulnerable directory listings which are operated by an Apache server. Figure 6: The result of intitle:index. of â€Å"server at†. Different versions of Microsoft IIS servers have wide usage all around the world. It would be easy to find the ser vers which are operated by Microsoft IIS 6. 0 servers, which are listed in the Google database by using the query â€Å"Microsoft IIS/6. server at† on the Google search engine. Error Pages The error pages and warning pages are informative for hackers because these pages could be used to determine the vulnerability of the target. Most of the time hackers use the error messages as keywords or search phrase to find their targets. For instance, if you use â€Å"Syntax error in query expression † –the in the Google search box, you can find the websites which have this error message as an Access error message; this message can display path names, function names and filenames which are helpful for the hackers. Page 5 of 8 Figure 7: The result of â€Å"Syntax error in query expression † –the. Hackers may use Google to locate vulnerable servers by searching for the error pages of web servers such as IIS. The queries intitle:†the page cannot be found†and â€Å"internet information services† can be used to search for IIS servers that present error 404. Default Pages Default pages are major sources of information about targets for hackers. They use Google to find live servers which are on the default page; most of the time, these servers have default configurations with many vulnerabilities. Login Pages The login pages can be use for brute force attacks and gain unauthorized access to the target. In addition, the login pages can be useful to provide information about the target server. For instance, if we use the search query allinurl:†exchange/logon. asp† in the Google search box, we can find the login page of the Microsoft Outlook Web Access. For the typical login page in the web applications or portals which have been programmed by ASP, you can use inurl:login. asp or inurl:/admin/login. asp. Figure 8: The result of allinurl:†exchange/logon. asp†. Locating CGI-BIN Common Gateway Interface (CGI) is a standard protocol for interfacing external application software with web servers. Hackers can use Google to locate the CGI-BIN applications or pages to target. For instance, the search query inurl:/cgi-bin/login. cgi locates the login pages base on CGI-BIN. Online Devices It is possible to create special search phrases to locate online devices such as IP cameras, network storage and printers with Google. In this technique hackers use the default pages or the application names which vendors used for hardware and that have been supplied by vendors.  © Ali Jahangiri www. alijahangiri. org Page 6 of 8 For instance, if you want to locate AXIS Network cameras then you can apply the search phrase inurl:indexFrame. shtml Axis to find online AXIS cameras. Here is another example: to locate online Linksys network storage with the GigaDrive Utility, you can use the search phrase intitle:†GigaDrive Utility† in the Google Search box. Figure 9: The result of inurl:indexFrame. html Axis. Google Hacking Database There is an unofficial website (http://johnny. ihackstuff. com/ghdb. php) which acts as a database for hacking of Google. This database has been used since its creation in 2004 by the Google hacking community. You would be able to develop your own Google hacking database by studying the behaviour of the equipment and identifying the pages, page titles and files which can be cal led and accessed by user and which will be listed in Google. Disclaimer: ? This document is to educate, introduce and demonstrate Google hacking. You should not use the information which has been presented in this document for illegal or malicious attacks and you should not use the described techniques in an attempt to compromise any computer system. Ali Jahangiri operates a policy of continuous development. The information which this document contains reflects his understanding at the time when presented. Ali Jahangiri reserves the right to revise this document or withdraw it at any time without prior notice and states no obligation to update the data included in his document. The contents of this document are provided â€Å"as is†. No warranties of any kind, either express or implied, including, but not limited to, the implied warranties of solutions and instructions for a particular purpose, are made in relation to the accuracy, reliability or contents of this document. Under no circumstances shall Ali Jahangiri be responsible for any loss of data or income or any special, incidental, consequential or indirect damage s howsoever caused.