Free Essay

Radio Cabs

In: Business and Management

Submitted By chandnirabara
Words 1271
Pages 6
The 100% Export Oriented Units (EOUs) are growth engine of exports and at present there are more than 1,800 EOUs in operation although the government, instead of encouraging the units to start EOUs, offered special schemes to rehabilitate or re-vitalize the existing EPZ/FTZ units by converting them into SEZ units.
The EOU sector is engaged in manufacturing of goods, located predominantly in rural or semi-urban area, offering employment opportunity to local people, develop self infrastructure without any subsidy or grant from the government, consistently showing growth in investment, export performance and Net Foreign Exchange earnings.
However, like EPZ/FTZ scheme, introduced simultaneously, to achieve quantum growth in export performance and Net Foreign Exchange earnings, the EOU scheme could not attract more entrepreneurs, due to various restrictions imposed under various regulations.
The initiatives taken by the government to undo such restrictive measures started yielding results by consistent growth in number of units operating under this scheme. When compared with the performance of government sponsored EPZ/FTZ schemes, the EOU sector did show commendable growth.
In spite of this, the government, instead of encouraging the units to start EOUs, offered special schemes to rehabilitate or re-vitalize the existing EPZ/FTZ units by converting them into SEZ units.
The new SEZs approved will take another 3-4 years to commence their full-fledged operations. The Government is giving subsidies for infrastructure development and income tax benefits and many more fiscal and tariff support for such units in the hope to achieve the objectives of Foreign Trade Policy after 4-5 years.
If the same facilities are extended to EOU sector, while keeping them under the identical restrictive business environment like SEZ units, the performance of EOU sector will show quantum jump in investment, employment generation, export performance and Net Foreign Exchange Earnings.
What the sector is now looking for is a guaranteed long-term commitment from the government in matters relating to Direct and Indirect tax relief.
There is very little difference in tax relief given to an EOU as compared to a DTA unit in view of the EPCG scheme, Duty Exemption Scheme, introduction of VAT, etc., what encourages the entrepreneurs to go in for EOU is direct tax relief. In return they accept in bond manufacturing and related controls.
In fact 100% textile and granite units are like a SEZ with a single unit. There are several products and industries, which are location specific and hence cannot be clubbed. The existing 100% EOUs have already invested huge funds for creating infrastructure and production facilities in their respective fields.
This bold and time-tested scheme requires revamping and fresh lease of life as well as need special attention for growth. It is also possible to attract further investment in this sector if proper conditions are created.
In order to analyse further a comparative study between a unit under SEZ Scheme and 100% EOU Scheme will help understanding the working of both the schemes better.
1. Location:
A SEZ unit can only be set up in the demarcated custom bonded areas notified under Section 76A of the Custom’s Act, 1962 where documentation & assessment can be done in the zone itself.
However a 100 percent EOU Scheme specially offers flexibility in location as unit can be established in any industrial or Commercial areas, except certain goods and services, for which private bonded warehouse is required to be obtained. But documentation and assessment is to be done at the port only.
2. Income Tax Exemption:
Section 10A of Income Tax Act, 1961 provides for deduction to the extent of 100% of profit and gains for 5 consecutive assessment year and thereafter to the extent of 50% of the profit and gains for a further period of 2 assessment year and for the next 3 consecutive assessment year, so much of the amount not exceeding 50% of the profits as is debited to the P/L account of the previous year.
Section 10B of Income Tax Act, 1961 allows relief from Income Tax burden for a period of 10 consecutive assessment year with a sunset clause of allowing deduction up to the assessment year 2009- 10.
3. Conversion:
In SEZ conversion of existing unit is not allowed.
Conversion of existing unit into 100% EOU is permissible with Income Tax Exemption under section 10- B of Income Tax Act.
4. Investment Criteria:
No investment criterion is prescribed under the SEZ scheme.
Minimum investment of Rs. 1 crore in plant and machinery is prescribed. However this condition shall not applicable to existing unit and units in EHTP/STP, agriculture, handicrafts and handmade jewellery etc.
5. DTA Sale:
On payment of applicable rate of duty
Concessional duty exemption extended for DTA sale by an EOU.
6. Entitlement for DTA Sale:
A SEZ unit can sell any quantum of goods in the DTA subject to the requirement of achieving positive NFE (Net Foreign Exchange Earning).
DTA entitlement is fixed at 50% of the FOB value of DTA entitlement is fixed at 50% of the FOB the physical exports on concessional rate of duty but for DTA.
7. Period of utilisation:
Duty free goods (except capital goods) to be utilised within a period of five years.
Duty free goods (except capital goods) to be utilised within a period of three years.
8. Cost recovery charges:
No cost recovery charges are payable by a SEZ unit.
Since special facility is being provided under the scheme to manufacture in Bond so cost recovery charges are recoverable from EOUs for the expenses incurred by Govt. for posting of Custom/Central Excise staff at its premises to supervise its operation.
9. Supplies from DTA: IN CASE OF SEZs | IN CASE OF 100% EOUs | Units are entitled to exemption from payment of CST on supplies from the DTA. | Units need to obtain reimbursement of CST. | Since supplies from DTA to SEZ units are treated, as exports the DTA suppliers are eligible to avail benefits of Drawback, DEPB, and DFRC on such supplies. | The supplies from DTA to 100% EOU is treated as Deemed Exports and the domestic supplier can avail benefits of Advance Licence, DFRC, Deemed Export Drawback and refund of terminal excise duty. |
10. Trading:
Trading unit can be set up under the Scheme.
It had been discontinued under EOU scheme.
11. Foreign Investment:
Cent per cent FDI investment is permitted through automatic route without approval for SEZ manufacturing unit.
Formal FIPB approval as per sectoral guidelines is required.
12. Others:
The services of telephone, couriers etc. rendered to SEZ developer or a SEZ unit are exempt from Service Tax. Similarly duty exemption has been provided in respect of services provide by one SEZ to another.
In case of EOU the service tax paid can be allowed as CENVAT.
Thus it is evident that certain procedural differences between the SEZs and EOUs exist due to the rationale behind forming the two schemes.
As compared to SEZ units, EOUs are more obliged to adhere to the rules and regulation of the Foreign Trade Policy, as it draws its strengths from the same. Whereas the SEZ scheme offers well-developed enclaves of industrial infrastructure with plots, built up space, power, water supply, transport etc.
On the other hand EOU scheme envisage the establishment of units anywhere in the country. This allows optimal cost-effective operation with reference to desired large area and outlet for exports.
Decision of operation in any of the area i.e. DTA, SEZ or EOU can be ascertained on the basis of SWOT analysis that manifests the strengths, weaknesses, opportunities and threats of the Duty tree schemes.

Similar Documents

Free Essay

Taxi Rental Business

...Radio Cabs Market ‐ Radio Cabs Market India June 2012 Executive Summary Market  Radio cab market is slated top grow at a rate of z1% per annum  Business model can be differentiated into ‐ different fleet – z2 and z3 g p g g  Revenues garnered for this particular sector occurs through 2 significant heads such as z4 and z5 Drivers Drivers &  Challenges – Increase in disposable income and  p p g transportation spending  – Influx of tourists – Demand from corporate sector – Change in mindset  Hard and soft skills’ training for cab drivers  Increasing entertainment options inside radio  cabs   Radio cabs with Wi‐Fi service Challenges – High fares – TRAI regulation on SMS cap – Unavailability of parking space Trends   Collaborations with other service providers  marking the sector  PE investments in the sector  Technological advancements in radio cabs  Exclusive radio cabs for women Exclusive radio cabs for women Major Players Competition Company 1 Company 4 Company 2 Company 5 Company 3 Company 6 RADIO CAB MARKET IN INDIA 2012.PPT 2 •Introduction •Market Overview M k tO i •Business Model •Revenue Model •Revenue Model •Drivers & Challenges •Government Participation  •Government Participation •Trends •Competition •Strategic Recommendations Appendix •Appendix RADIO CAB MARKET IN INDIA 2012.PPT 3 Ease of booking and quality customer service work towards ......

Words: 2103 - Pages: 9

Free Essay

Taxi Sure

...rP os t op yo IMB 507 TAXIFORSURE: TECHNICAL INNOVATION IN THE RADIO CAB INDUSTRY Do No tC ANSHUMAN TRIPATHY, PIYUSH TARIYAL AND VYOM CHARAYA Professor Anshuman Tripathy and PGP students Piyush Tariyal and Vyom Charaya prepared this case for class discussion. This case is not intended to serve as an endorsement, source of primary data, or to show effective or inefficient handling of decision or business processes. Copyright © 2015 by the Indian Institute of Management Bangalore. No part of the publication may be reproduced or transmitted in any form or by any means – electronic, mechanical, photocopying, recording, or otherwise (including internet) – without the permission of Indian Institute of Management Bangalore. This document is authorized for educator review use only by Ranjan Das, HE OTHER until July 2015. Copying or posting is an infringement of copyright. Permissions@hbsp.harvard.edu or 617.783.7860 rP os t TaxiForSure: Technical Innovation in the Radio Cab Industry Our biggest strength is our unique algorithm which combines all taxi operators within one platform. We believe it helps us in being a more efficient player and provide better service than the other radio cab operators in the industry. —Aprameya Radhakrishna, Co-founder TaxiForSure tC op yo The day had begun on a good note for the founding team members of TaxiForSure as they sat analyzing the latest figures emerging out of Delhi, the city in which they had expanded most recently. Growth......

Words: 4137 - Pages: 17

Premium Essay

Market Structure of Radio Taxi/Cab Industry India

...Market Structure of Radio Taxi/Cab Industry The radio taxi/cab industry forms a part of the service industry. When GPS-linked, electronically-metered cabs were introduced in 2006, they came as a welcome reprieve in a country of 1.3 billion people of whom only 2 percent own cars. This makes the industry very attractive as it virtually means a market with unlimited demand that is only constrained by the supply side. The Indian taxi market is estimated at $6-$9 billion and witnessing an industry growth of about 17 – 20 per cent per annum. At this rate, the market is projected at a whopping $25 billion by 2025. The major players of the industry are Meru Cabs, Mega Cabs, Easy Cabs, and Ola Cabs with smaller players such as Carzonrent, Yo Cabs, Quick Cabs, Savaari Cabs, Taxiforsure and new entrants such as Uber. The organized taxi segment is only 5 percent of the market, compared with 70-80 percent in developed countries. Meru Cabs, Easy Cabs and Mega Cabs together comprise of approximately 70% of the market share. According to a recent study, the radio cab market comprises of 15000 + cabs with three large multicity operators (Meru Cabs, Mega Cabs and Easy Cabs). Meru Cabs is currently the largest radio cab operator in the country with a market share of approximately 50% and a fleet of 7000 + cabs, followed by Mega cabs with 2800 cabs and Easy Cabs with 3000 radio taxis. The radio taxi market in India can be viewed as an example of oligopoly competition. This refers to a market...

Words: 650 - Pages: 3

Premium Essay

Hospitality Industry

...CASE STUDY CLARIDGE’S HOTEL, LONDON IMPROVING COMMUNICATION AT A HISTORIC FIVE-STAR HOTEL MOTOTRBO™ SL SERIES RADIOS MAKE THE GUEST EXPERIENCE FIRST CLASS Located in the heart of London, the world-renowned Claridge’s Hotel is famous for its five-star service and premier clientele that includes celebrities, dignitaries and the business elite. Named “Top UK Business Hotel 2009” and “Best UK Hotel for Rooms 2010” by Condé Nast Traveler, providing flawless service is paramount to this historic luxury property. Guests expect extraordinary attentiveness, responsive security and absolute discretion from Claridge’s staff. The challenge facing the hotel was how could it achieve instant, reliable and seamless communication and make it virtually invisible to guests? CUSTOMER PROFILE Company Industry • Hospitality • Claridge’s Hotel Key Features • Five star luxury retreat in busy central London • Majestic Art Deco building, first opened in 1854 • 203 rooms and suites; three restaurants, two bars, business center and health spa • More than 300 staff members • Frequented by celebrities, royalty, statesmen, socialites and business elite CASE STUDY CLARIDGE’S HOTEL, LONDON CLARIDGE’S HOTEL LONDON DISCREET COMMUNICATION, FROM STREET TO SUITE Communication devices for a hotel this sophisticated had to be sleek, discreet and stylish, too. From the street to the penthouse suite, Claridge’s sought a communication tool where function met style. It had to fulfill......

Words: 1371 - Pages: 6

Premium Essay

Channels

...get physical communication especially when dealing with concern messages and the employees want to hear it from their manager face to face. Under this channel there are so many ways for managers to communicate with employees, management team and other organization. These physical media channels that is used for communication is through large meetings, department meeting, video conferences and viral communication (CAB, 2008). Mechanical Media Channel is the second type of communication channel that Wal-Mart uses to communicate with management, employees, and other organizations. This communication channel means there are a lot of electronic and written channels that is used for message or giving a deeper knowledge on how to communicate better with each other. There are so many different ways management can communicate under mechanical media with their management team, employees and organizations. The different channels of communication are email, internet, personal letters, weekly news letters, billboards, magazines, text message, ps systems, telephones, memo, radios and walkie talkie. Wal-Mart always have room for improvement especially when it comes to communication face to face. For example if the manager wants juice by the front register the manager who was supposed to...

Words: 385 - Pages: 2

Free Essay

Creating Blue Oceans

...“blue oceans” by leveraging disruptive technologies that change the rules of the game within the competitive environment. In presenting a strategic disruptive innovation, I will use the example of Meru Cabs Private Limited (Meru), India’s first radio-cab service introduced in April 2007. Meru has a an interesting history in the context of competitive strategy in that when its services were first introduced by IVCF, the company that owns Meru, no service of its kind was previously available in India. Over the last four years, several companies have introduced radio-cab services that were essentially identical to that of Meru. While the radio-cab industry in India has become a “red ocean”, where several companies are competing for profits and market share, Meru, by virtue of being the first entrant, has established its brand as a provider of comfortable and trustworthy means of transport within major metro cities. Prior to Meru Cabs, the only available modes of transport in major Indian metros were public transport (local rail and bus), yellow cabs and auto-rickshaws or private cars. While public transport is comparatively the cheapest mode of transport, local rail and bus lines are overcrowded, carrying almost three times the listed capacity during rush hour times. Yellow cabs and auto rickshaws while providing slightly better comfort, are not air-conditioned and can only be hailed on the street with drivers often refusing undesirable fares. Private...

Words: 969 - Pages: 4

Premium Essay

Mobile Marketing

...Beck Taxi can increase its revenue and market share in the highly commoditized Cab Industry in Toronto. Any increase in pricing of radio service would lead to high attrition among the drivers and poor service quality in terms of timely service as drivers would start picking up fares. Hence Beck taxi should maintain status quo with respect to pricing radio fee. It should generate revenues through advertising inside and on the cab, by attracting more drivers, vehicle fleet owners and license plate holders by providing them incentives and by creating strong differentiating points by investing in technology and marketing activities. Situational Analysis Toronto’s Cab Industry has a supply overhang; also, there is not much differentiation between the 35 brokerages operating in Toronto in terms of the service provided hence cab service is highly commoditized. Toronto is a phone order market where speed of response is the index of customer service. Beck Taxi is the market leader, managing a number of plates and providing radio despatch service to vehicles. Its objective is to maximise its revenue and market share. Beck Taxi has not increased its radio fees since 1989 hence there is huge potential to increase its revenue by increasing the radio fee or implementing two part tariff where the driver is charged a fixed fee and a usage fee based on the number of radio despatches. But any increase in radio service pricing policy would lead Increase in market share can be best......

Words: 1118 - Pages: 5

Free Essay

Paper

...* Aviation looked foolish until World War I * Mail was flown during day light hours until 1923 * In 1925 Clyde Kelly introduced and signed Airmail Act of 1925 * Morrow Report commissioned in 1924 recommended aviation be regulated and military and civilian operate separately * Air Commerce Act encourage the growth of the aviation industry through establishment of airways and navigation aids * Pilots and mechanics were licensed * May 1927 Lindbergh made his flight across the Atlantic * 1928 the first airmail route radio stations were installed * Archie Leagues nations first air traffic controller * 1934 Bureau of Air Commerce responsible for the regulation of traffic along the nation’s airways * In March 1945, the Air Coordination Committee (ACC) was established to plan for the nations growth in aviation. * The ACC requested the Radio Technical Commission for Aeronautics (RTCA) to form a task force to predict future needs of the ATC system. RTCA formed SC-31 (1948). * SC-31 report recommended a common ATC system be developed to serve the needs of military and civilian pilots. * In the late 1950’s air traffic controllers were leaving the FAA because of long working hours and low pay. * Early 1960’s labor unrest began to appear again within the FAA. Several early unions were formed. * The FAA realized it was one of the few federal agencies whose operation was vital to the well being of the country, but whose workforce...

Words: 608 - Pages: 3

Premium Essay

Vancouver Cab

...| * | | | | Vancouver Cab Company A Business Analysis Cheryl Bays BUS 101 Prof. Worthington Word Count: 1132 INTRODUCTION: The purpose of this paper is to give an analysis of Vancouver Cab Company, a local and family owned and operated Taxi Company. Included will be a description of the business and its stakeholders and give their relationship to the business, as well as the internal and external factors that affect the company and its employees, contractors and owners. DESCRPITION: In 2004 Jennifer and Tony Smith started Woodland Cab LLC with one car, a Chrysler Le Baron, in North Clark County as an LLC. In 2006 they moved into Vancouver with eight car certificates and six cars on the road. Tony drove cab for the “original” Vancouver Cab for 11 years, giving him and Jennifer a good sense of the needs and wants of the community they were to serve. The company values describe the business, “We are not here to get bigger than our britches, we are here to serve the people and business of Clark County and surrounding areas. Our goal is to have the customer arrive safely at their destination in a friendly, timely manner”. Vancouver Cab has a few different names such as Battle Ground Cab, Woodland Cab and Clark County Cab. STAKEHOLDERS: Vancouver Cab has an unlimited base of stakeholders that benefit from the company. The list cannot be compiled in any kind of a value to each stakeholder due to the variance of the......

Words: 1161 - Pages: 5

Free Essay

Cab Industry

...REALITY INTERNSHIP| 2012 Radio Cabs—How Do They Work in Delhi? Reality Summer Internship Working Paper Submitted by: Neelem Pathania CCS Working Paper No. 266 Summer Research Internship Programme 2012 Centre for Civil Society www.ccs.in Radio Cabs—How Do They Work in Delhi? 2012 Table of Contents Abstract..................................................................................................................................................... 3 Acknowledgements................................................................................................................................... 4 Introduction............................................................................................................................................... 5 Inception of Radio Cabs............................................................................................................................. 6 Radio cabs Business Models……………………................................................................................................ 8 Snapshot of Radio CabsBusiness................................................................................................. 8 Franchise Model.............................................................................................................. 9 Attached vehicle Model................................................................................................... 9 Rent-a-Cab......

Words: 5376 - Pages: 22

Premium Essay

Operations Research

...Business Research Methods (BRM) Project submission on Meru Cabs: Why is this cab service provider losing market share? Submitted by: Group 8 Submitted by: Group 8 Aditi Chaudhary | PGP/19/183 | Alka | PGP/19/186 | Alla Bharath Reddy | PGP/19/187 | Avishek Pandey | PGP/19/196 | Miranda Boro | PGP/19/207 | Md. Talha | PGP/19/208 | Declaration "We hereby declare that this submission is our own work and that, to the best of our knowledge and belief, it contains no material previously published or written by another person nor material which has been accepted for the award of any other degree or diploma of the university or other institute of higher learning, except where due acknowledgment has been made in the text.” Contents Introduction 1. Business Research problem 2. Why did we select it? 3. Introduction 4. Research Methods 5. Information regarding collection of data a. Quantitative b. Qualitative 6. Research Methodology c. Survey d. Focus Groups Discussions 7. Expected analysis and outcome Conclusion Business Research problem: “Why is Meru cabs losing its market share? “ The overall bookings are very less on Meru as compared to its competitors and it is lagging behind low-cost cab service providers such as Ola, Uber and Taxi for sure. Our present research proposal addresses this issue and tries to find out the reasons behind the same. Why did we select it? Many of our team......

Words: 1548 - Pages: 7

Free Essay

Meru Cabs Analysis

...11BSPHH010950 Giriraj Maloo- 11BSPHH010307 INDUSTRY BACKGROUND Taxi cabs are small cars or vehicles hired for a small group of passengers on non-sharing basis. The journey of taxi cabs in India began somewhere in 1910s as a replacement of horse wagons. The first taxis were the traditional Ambassador and Premier Padmini painted black and yellow to serve the Indians for daily commuting. These were metered taxis that gradually had spread over to various cities including Mumbai, Delhi, Bangalore and other major cities of the country. The business started sprouting results and thus it expanded the footprints in almost all the cities with a further addition of Fiat taxis. The taxi services or car rentals are available for all categories of people, be it middle class, company’s employees, high income groups or families. The service providers ensure that traffic chaos are handled and up to the expectations of the consumers. Gradually, with the changing generation and advancing technology, people have started desiring for enhanced comfort, luxury and service due to the high generated income and overall economic growth. This has shifted the trend from normal black and yellow taxis to other luxury cars including Tata Indigo, Tata Indica, Toyota Corolla, Mahindra Renault Logan, and many more, eventually giving an end to the ubiquitous black-and-yellow taxis. These luxurious and high-end taxis or cabs are seen only in metropolises in India whereas in some cities like......

Words: 5947 - Pages: 24

Free Essay

Friendly Cab Firact

...FIRACT  –  Chapter  1  (p.37)     Susan  Ho   NLRB  v.  Friendly  Cab  Co.  512  F.3d  1090  (9th  Cir.  2008)   Facts   Friendly  is  a  taxi  company  in  Oakland,  CA,  run  by  Singh’s  family.  After  tension  arouse   between  Friendly  and  its  drivers,  the  Union  was  appointed  as  the  rep  to  file  a  petition  with   the  NLRB  seeking  a  declaration  that  these  drivers  were  employees  and  entitled  to   representation  for  collective  bargaining  purposes.   Evidence  of  IC  Status   • • • • The  agreement  specifically  stated  that  no  employee-­‐employer  relationship  existed   Drivers  do  not  work  set  hours  or  a  minimum  number  of  hours   Friendly  does  not  provide  any  benefits  to  drivers    Friendly  does  not  provide  standard  employer  responsibilities  such  as  withholding   SS  taxes,  payroll  taxes,  and  other  taxes  on  behalf  of  the  drivers   • • Friendly  does  not  provide  workers’  compensation  insurance   Drivers  paid  fixed  rental  rate  and  kept  all  collected  fares ......

Words: 913 - Pages: 4

Premium Essay

Uber Report

...issues. In the fourth part we have discussed the amendment in various legal acts to bring Uber in the ambit of the law. The business strategy used by Uber is discussed in the fifth part. The paper finds its just conclusion in the sixth and the last part. 1. Introduction India is one of the fastest emerging economies in the world and the Taxi market is seeing phenomenal growth for the past 6-7 years. The Indian radio taxi market is estimated to be $9 billion and growing at 1720% annually1. The organized taxi market constitutes only 4-5% of the taxi market2 and many taxi companies are fighting for a share of this market with UBER being an important player. 1.1 UBER Uber, founded by Travis Kalanick and Garrett Camp in 2009, is an American international transportation network company headquartered in San Francisco, California. The company operates via a mobile application called the Uber mobile app, which allows consumers with smartphones to submit a trip request which is then routed to Uber drivers who use their own cars. Thus it connects consumers and cab drivers. By May 28, 2015, the service was available in 58 countries and 300 cities worldwide3. These are astounding...

Words: 3425 - Pages: 14

Premium Essay

History of the Cell Phone

...Often Dismissed in This Age of Technology is the Birth of the Cellular Phone. There are now more wireless devices in use in the United States than there are people. Americans have doubled the amount of Internet data traffic they generate on smartphones, according to the trade group CTIA. The number of mobile devices rose 9 percent in the first six months of 2011 to 327.6 million — more than the 315 million people living in the U.S., Puerto Rico, Guam and the U.S. Virgin Islands. Wireless network data traffic rose 111 percent to 341.2 billion megabytes, during the same period (According to "Number of Cellphones Exceeds U.S. Population: Ctia Trade Group" (2011). Often dismissed in this age of technology is the birth of the cellular phone. Who is accredited with the invention of the cellular phone? Have you ever looked at your cell phone and thought, “HMM I wonder who thought of this?” Hundreds of thousands of people have wondered that very question. Sure several people thought of the idea of being able to walk around with a phone to their ear while they were out shopping, or stranded on the side of the road out of gas, or had a flat tire. There were several companies working on cellular technology at the same time. ”While the technology had been developed, it was not until 1971 that AT&T submitted a request to the Federal Communications Commission (FCC) for cellular service. It took more than 10 years for an approval ("Martin Cooper - History of Cell......

Words: 1415 - Pages: 6