Need investor for Global Tax Guru portal.

Dear  Investor,

                        

This portal ,www.globaltaxguru.in ,as decision making tool , optimize  compliance and regulatory cost of import and export and add efficiency in global supply chain. It  is unique product  which fill gap  existing  between  online  seller and buyer (enhance choice for the large market if Indian middle-class buyers, aspiring to buy world class products at the best prices from the powerful international retailers – allows the Indian middle class to break free of the sundry importer with his high margins) for  their compliance and regulatory need and supply chain. Validity of concept and popularity of portal and blog can be seen by Search   and users comments. There is no such product exist in market .

  

                             It has identified  five medium of  global supply chain such as Postal ,Courier ,Baggage ,Air Cargo and Sea Cargo for  import and export of goods.

 It is to be emphasized that there are 7 lakhs Post office in World which act as last point of  delivery. But each country restricts and prohibit  flow of certain  goods through Postal Medium .If such information is available  before any person send parcel through Post , then , compliance risk can be minimized.  Thus , our portal , once it is completed, will take care of Global Postal Supply Chain.

In Courier industry , Cost of freight is very high and  nearly big four company is  dominating market. But alternatively , one can offer cost effective solution by combining Post with local courier companies.This untapped market can be exploited.

The Baggage mode of supply chain take cares of Tourist and travel  industry and global work force. There is restriction and change in duty free allowance as per  age , abroad stay and coming from which country. The portal will take care of documentation ,right duty and best way of importing  goods.

Air cargo is for more quantity  but will have lesser freight cost comparatively to Courier  ,thus less duty.

Sea Cargo is for bulk cargo and cheapest mode of import and export goods.

In another words , my portal takes cares of  importing small pin to big ship ,for that matter any thing.

Reason for growth of  Portal:

• Introduction  of self assessment for Customs duty from this budget,
• Growth in e-commerce and m-commerce website like ebay,amazon,alibaba,etc , internet penetration and Mobile phone. The Indian e-commerce market will grow  at the rate of 47% to over Rs 46,000 crore in the 2011 calendar year  as per report of  IAMAI.
• Growth in online payment gateway,
• Growing and aspiring middle class and entrepreneurs,
• Growing network of Courier and Postal to look after rural market,
• Globalisation and access to newer market, Regional trade block ,IPR infringement,fake import,etc.
• Introduction of GST,
• Growth in Gift industry  and consumer electronics goods
• Time gap between Indian launch and  foreign launch of high value consumer goods ,etc.

Current stage of portal:

•    Displaying information for compliance such as import-ability and non-tariff barrier,
• Displaying landing cost of product  and at what price goods can be imported as per EDI   data , 
• How to import through sea -cargo ,Air-cargo ,Post ,Courier and Baggage ,  
• Export incentives on goods ,
• Forms are generated for online submission documents to Customs,etc.

Future direction of portal:

• Single Window Approach- generating all documents for bringing goods form door to door delivery, such as invoice ,packing list Bill of entry and integrating with Bill of lading ,calculating duty liability ,filing import documents to Customs and enabling duty payment to authorised  Banks (payment made alongwith payment to e-tailer).This is end to end supply chain solutions. All data will be as per World Customs Organisation(WCO) data model and UN standards.
•     Post import and export incentives - We will inform whether any incentive  such as Refund of duty ,or, duty free import ,or ,drawback refund ,or, CENVAT credit  ,or any other incentive is available   to goods  .
• Designing   global supply chain in  relation to import and export goods  with respect to time to market ,nature of goods like parts,finished goods,perishable goods,used goods ,bulk goods  , preferential duty as per country of origin ,mode of  import such as sea  cargo ,Air cargo ,post ,baggage and courier.
• Designing   global supply chain in  relation to import and export goods  with respect to time to market ,nature of goods like parts,finished goods,perishable goods,used goods ,bulk goods  , preferential duty as per country of origin ,mode of  import such as sea  cargo ,Air cargo ,post ,baggage and courier.
• Providing tracking  and tracing of goods in global supply chain
• Moving to social media platform ,where people can share ,network and do business.
• Developing Mobile platform on ipad, iphone ,blackberry ,window7,etc.
• Industry specific API for Electronics industry, Fashion  industry,   Apparel industry, Shoe industry, Project imports, Toys industry,Sports industry ,Gems and jewelery industry, ,  Gift industry,etc.
• Mode of import specific API  for   Courier industry ,Postal   and Baggage                                                    

Market Size :

• Quantum of transaction cost is about 7-10 per cent of total value of Indian exports. This amounts to a significant, about $ 15 billion.( Source: The Hindu,http://www.thehindu.com/business/Economy/article1167984.ece)
• Trade transaction costs are frequently estimated to be in the range of 7-10 % of world trade value (basis unclear); customs compliance costs would be somewhat less. 
•  Benefits of trade facilitation typically seen as 1-5 % of the value of total world trade (1994 Coumbus Ministerial Declaration on Trade Efficiency cited the figure of 2.5%).  (Source:http://www.unece.org/forums/forum02/presentations/session_ii/akleitz.pdf

                      

How  revenue will come

•   Charging fee as digital consultant for advice rendered for import and export related matter.
• Fee for documentation and  clearance of cargo.
• Integrating  specific API to other e-commerce websites and charging per transactions if goods are sold and annual licence fee ,or,combination of both.
• Advertisement ,
• Fee for claiming import and export incentives from Govt.

Team  back ground:

                                 I am graduate from IIT Delhi ,87 Batch ,and  did Post Graduate Executive Diploma in Supply Chain Management from Loyala Institute of Business Adminstration,Chennai. Worked five years in BHEL ,then Customs Department( 1992-2007).

My popular website and blogs are:

     http://www.personalimport.blogspot.com

      http://www.globalsupplychainguru.com                                                    

• http://www.servicetaxes.blogspot.com/
• http://www.dutyrefund.blogspot.com
• http://www.customsvaluation.blogspot.com
• http://winksite.com/ravindra/servicetax
• http://winksite.com/ravindra/personalimp
• http://winksite.com/ravindra/dutyrefund

Need your help and assistance in finding right type of investor and proper business plan.

Pl write to me ,how  can we  take this to further.

Thanks and regards

Ravindra Kumar

Global Tax Guru

9958257070

                           

Ask me questions on Economic Times Of India , i am appearing as Expert on Customs matter in Taxation section of Q/A.

Ravindra Kumar
Customs

Ravindra Kumar is a graduate from IIT-D with a PG Diploma in Supply Chain and Logistics from LIBA Chennai. He has worked in BHEL for 5 years and spent more than 15 yrs in the Customs Department. Currently he runs a blog and e-taxation portal along with his practice as an Indirect Tax Consultant in the area of Customs, Excise and Service Tax.

As our expert here Ravindra will take queries related to Indirect Taxes (Customs and Excise) specially as they pertain to individuals and corporates when they import/export goods using Post office, Couriers or via Air and Sea ports for personal or commercial use.

Duty on ipad4, tablet pc, and laptop is now 16.854%

Duty on ipad2,ipad4, tablet pc, and laptop is now  16.854%.

Customs duty on ipad is 14.71%

No change in Customs duty for ipad. It is still 14.71%. This is also same for laptop ,netbook, notebook ,tablet PC, and  personal computer (PC).

Customs duty on Flash memory is 9.52%

Now  import duty on flash memory  as media are : Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 3%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on  flash memory  is 9.52%.

Customs duty on Flash memory is 9.52%

Now  import duty on flash memory  as media are : Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 3%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on  flash memory  is 9.52%.

Customs duty on Combo drive is now 9.36%

Now  import duty on Combo drive are  Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on  Combo drive   is 9.36%.

Customs duty increased on dvd writer to 9.36%

Now  import duty on DVD  writer , Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on DVD  writer  is 9.36%.

Customs duty increased on hard disc drive to 9.36%

Now  import duty on  Hard  Disc Drive  are  : Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on Hard disc drive  is 9.36%.

Customs duty increased on CD ROM drive to 9.36%

Now  import duty on  CD drive , Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on CD drive  is 9.36%.

Customs duty increased on dvd drive to 9.36%

 Now  import duty on DVD drive , Basic customs duty 0 %,  Excise duty @ 5%,  Customs cess @ 0%, Excise cess @ 3%,  and SAD @ 4%.Therefore,  Customs duty on DVD  is 9.36%.

Customs duty decreased on personal use goods imported through Post

 Now import duty on  personal use goods  have been reduced to 14.71%. The CTH is  9804. But goods should not be restricted under import policy.

Increase in Customs duty of Wireless data modem card and duty varies as per CENVAT availment

There are two  category  of duty on  wireless modem , one  for who claimed CENVAT credit and another who do not claim. If somebody is availing CENVAT credit on Wireless modem , then duty is  9.52 % of value, otherwise, it is 5.1 % of assessable value. The new changes in duty is on account of central excise duty ,which is  5 %  (if  CENVAT   claimed) and is 1 % (If  CENVAT not claimed as input).Relevant portion of
notification  is re -produced for easy  reference:
 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
                                       New Delhi, the 1
st
March, 2011
NOTIFICATION
No.    1/2011-Central Excise
G.S.R.   (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby  exempts the  excisable  goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in the corresponding entry in column (2) of the said Table, from so much of
the duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 1% ad valorem:

Provided that nothing contained in this notification shall apply to the goods in respect
of which credit of duty on inputs or tax on input services has been taken under the provisions
of the CENVAT Credit Rules, 2004.........................................................


" SN 101 , 8517    ,  Wireless  data modem cards with PCMCIA or 
USB or PCI express ports"




Other notifications  , which is without exclusion of CENVAT  conditions is reproduced here:


Notification                                                                               New Delhi, the 1
st
March, 2011
No. 2/2011-Central Excise
G.S.R.      (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby exempts the excisable goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in corresponding entry in column (2) of the said Table, from so much of the
duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 5% ad valorem:

."  SN 61   ,     8517    ,Wireless data modem cards with PCMCIA or 

USB or PCI express ports "

 Excise duty  is base on MRP price  in India ,after appropriate abatement.

Customs duty on Mobile phone is increased after budget 2011

There are two  category  of duty on mobile phones ,iphone ,smartphone , one  for who claimed CENVAT credit and another who do not claim. If somebody is availing CENVAT credit on Mobile Phones , then duty is  6.37 % of value, otherwise, it is 2.12 % of assessable value. The new changes in duty is on account of central excise duty ,which is  5 %  (if  CENVAT   claimed) and is 1 % (If  CENVAT not claimed as input).Relevant portion of
notification  is re -produced for easy  reference:
 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(DEPARTMENT OF REVENUE)
                                       New Delhi, the 1
st
March, 2011
NOTIFICATION
No.    1/2011-Central Excise 
G.S.R.   (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby  exempts the  excisable  goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in the corresponding entry in column (2) of the said Table, from so much of
the duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 1% ad valorem:

Provided that nothing contained in this notification shall apply to the goods in respect
of which credit of duty on inputs or tax on input services has been taken under the provisions
of the CENVAT Credit Rules, 2004.


" SN 100 ,  8517 or 8525 60   , Mobile handsets including Cellular Phones and 
Radio trunking terminals.



Other notifications  , which is without exclusion of CENVAT  conditions is reproduced here:


Notification                                                                               New Delhi, the 1
st
March, 2011
No. 2/2011-Central Excise
G.S.R.      (E).- In exercise of the powers conferred by sub-section (1) of section 5A of the
Central Excise Act, 1944 (1 of 1944), the Central Government, on being satisfied that it is
necessary in the public interest so to do, hereby exempts the excisable goods of the
description specified in column (3) of the Table below and falling under Chapter, heading,
sub-heading or tariff item of the First Schedule to the Central Excise Tariff Act, 1985 ( 5 of
1986), specified in corresponding entry in column (2) of the said Table, from so much of the
duty of excise leviable thereon under the said Central Excise Act,  as is in excess of the 
amount calculated at the rate of 5% ad valorem:




"  SN 60    ,    8517 or 8525 60 , Mobile handsets including Cellular Phones and Radio trunking terminals ".






 Excise duty  is base on MRP price  in India ,after appropriate abatement.

Duty reduced on LED TV

 Today's budget has reduced duty on LED  TV. Waiting for notification for exact  duty.

Income tax exemption for citizen in this Budget

 Direct Tax Code (DTC) will be effective from 1.4.2012.
Exemption limit  raised to Rs 1,80,000/= for general Tax payer.
Senior citizen age  reduced  form 65 Years to 60 Years and exemption limit is Rs 2,50 ,000/=
One more category of senior Citizen ,who are above 80 years, exemption limit is Rs 5,00,000/-.

No need to file IT return by Salaried people

 If  employer  has deducted TDS  from Salary ,then, Salaried employee need not to file  IT return.

Relief from litigation for small revenue locked

As per Govt litigation policy , Govt Department will not  appeal in higher  judicial forum ,if revenue involved is less than  prescribed by Govt. It will concentrate more on higher revenue realisation ,where  revenue involved is high.

Self Assessment of import duty is introduced for importer and exporter

Self assessment by importer  and exporter   is a  great step. It will reduce time of transaction and cost  of compliance with Customs formalities. Thus will lead more competitive  price of  Indian Goods  and improve
efficiency of Global Supply Chain. There will be random checks by Customs to prevent mis use of  self assessment practice. This scheme is operative in various form for past many years. But  ,now it is has been widen.   Detail procedure will be known only after  Notification or circular is issued by CBEC.

As per Task force of Ministry of Commerce, It is said that  reducing of transaction cost will yield saving of
  Rs 2100  Crore.

CBEC has EDI systems at  91 locations. Electronic filing and    CBEC web portal are great tool for reducing transaction cost.  Even  State Govts  have started accepting  Electronic Tax Returns.

Goods and Service tax ( GST) in this budget 2011-2012

Honourable FM has proposed that  he will introduce Constitutional   amendment for GST. Establishment of  national IT   network  will be back bone of effective GST regime. In June 2011 ,Pilot portal on GST, with collaboration  with 11 States ,will be launched. Lower rate of Central Excise duty is increased form  4 % to 5 %. Around 130 items of consumer nature , Central  Excise duty is reduced to 1%  ,in order to align with GST.