SKYLARK IMPEX

GST- ONE NATION ONE TAX

2017-07-06T20:10:00.000-07:00

What is GST?

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

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

So, if we had to look at a pictorial description of the various stages, it would look like:

Goods and Services Tax will be levied on each of these stages, which makes it a multi-stage tax. How? We will see that shortly, but before that, let us talk about ‘Value Addition’.

Let us assume that a manufacturer wants to make a shirt. For this he must buy yarn. This gets turned into a shirt after manufacture. So, the value of the yarn is increased when it gets woven into a shirt. Then, the manufacturer sells it to the warehousing agent who attaches labels and tags to each shirt. That is another addition of value after which the warehouse sells it to the retailer who packages each shirt separately and invests in marketing of the shirt thus increasing its value.

GST will be levied on these value additions – the monetary worth added at each stage to achieve the final sale to the end customer.

There is one more term we need to talk about in the definition – Destination-Based. Goods and Services Tax will be levied on all transactions happening during the entire manufacturing chain. Earlier, when a product was manufactured, the centre would levy an Excise Duty on the manufacture, and then the state will add a VAT tax when the item is sold to the next stage in the cycle. Then there would be a VAT at the next point of sale.

So, earlier the pattern of tax levy was like this:

Now, Goods and Services Tax will be levied at every point of sale. Assume that the entire manufacture process is happening in Rajasthan and the final point of sale is in Karnataka. Since Goods & Services Tax is levied at the point of consumption, so the state of Rajasthan will get revenue in the manufacturing and warehousing stages, but lose out on the revenue when the product moves out Rajasthan and reaches the end consumer in Karnataka. This means that Karnataka will earn that revenue on the final sale, because it is a destination-based tax and this revenue will be collected at the final point of sale/destination which is Karnataka.

2015-04-01T21:56:00.001-07:00

Make in India initiative By the govt. and new FTP has made it easy to export goods worth Rs. 25000 by courier and FPO. We wish to export Indian made goods up to Rs. 25000.

If you desire to import articles made in India kindly send your requirement so that we are able to send you quotation immediately.

Contact vinodkluthra@yahoo.com

Regds

Vinod Luthra

2013-02-01T05:05:00.000-08:00

SKYLARK IMPEX is now having a new E.mail address.

skylarkimpex@in.com

This for the information of all concerned.

Our functions and services remain as usual.

2009-12-20T23:25:00.001-08:00

SKYLARK IMPEX was formed on January 14, 1988 for undertaking the following services for the exporters and importers of repute in India as well as abroad.

Ever since our existence we have been representing a large number of Exporters and Importers for their assignments at IGI, New Custom House, ICDs - Faridabad,Dadri,Tughlakabad etc. ,DGFT and various government departments

REPRESENTATION and Liaison in different fields viz. business promotion, marketing, passport, visa services etc. Subsequently diverted to Export Import Services viz. custom and DGFT services e.g. Application, registration and sales purchase of DEPB and other Import Licenses, Processing of DBK etc. at various custom ports in Delhi and NCR on behalf of Export Houses and Trading Agents.

EXPORTS of custom jewelry, velvet boxes for gold and silver jewelry. We are exporting velvet boxes to United Kingdom and are aspiring to expand our marketing network to other countries in Europe and USA.

We would welcome any enquiry for:

Representation for Business Representaion in India

Liaison and Representation at DGFT and Custom Ports in Delhi and NCR
(for Registration of DEPB and other import licences, DBK and allied custom activities)

Export of Costume jewelry, Velvet boxes for gold and silver jewelry and other articles of your interest in small quantity.

Please mail your equiry to : skylarkimpex@in.com
or contact us at: 919711732717, 919313068956

Vinod Luthra
SKYLARK IMPEX