ECONOMIC INTEGRATION

Meaning: - Economic integration is a process whereby countries in a geographical region (location) co-operate with one another to reduce or eliminate barriers to the international flow of products, people or capital. It can be of served forms with different degree of integration.

ACCORDING TO SALVATORE’S:-

“Commercial policy of discriminatively reducing or eliminating trade barriers only among the nations joining together”

•Note:-

Therefore it refers to a decision or process whereby two or more countries combine into
a larger economic region by removing discontinuities and discriminations existing along national frontiers, and by establishing certain elements of cooperation between them.

ON THE BASICS OF CO-OPERATION WE HAVE FOLLOWING TYPES OF ECONOMIC INTEGRATIONS.
1.Preferential trading system/Preferential trade arrangements (PTA).
2.Free trade area (FTA).
3.Customs union (CU).
4.Common market.
5.Economic Union (EU).

1.PREFERENTIAL TRADING SYSTEM/PREFERENTIAL TRADE ARRANGEMENTS (PTA)
1.It was the earliest form of economic integration Among the 48 Commonwealth nations during the British Empire (1932).
2.It is the loosest form of EI which provides lower barriers on trade among the participating nations than on trade with non- member nations.
3.It ended after the formation of GATT rules.

2. FREE TRADE AREA (FTA).
1.It is a loose form of EI wherein the member countries fully or partially abolish trade barriers and tariffs on most (if not all) goods traded among them but retain its own tariff, trade barriers and commercial policies with non-member countries.
2.It is simply based on inter-area trade.
3.Examples of this: EFTA, LAFTA, LAIA.

3. CUSTOM UNION (CU).
1.In this EI the participating counties adopt a common external policy and abolish all tariff and trade barriers among themselves.
2.In CU all member nations act as a unit in their trade relations with non-member countries.
3.Example of this: European common market/European Union formed in 1957/ The European Community (EC).

4. COMMON MARKET.
1.Besides allowing for free trade and common external policy for non-member, It is a single unified common the market area among nations in which there goods, services, and factor market are integrated.
2.The EC is also a common market.
3.EU achieved the status of a common market at the beginning of 1993.

5. ECONOMIC UNION (EU).
1.The economic union is the highest and most advanced form of economic integration, besides the integration of product and factor markets as in the common market; it involves harmonization of monetary, fiscal and other policies such as exchange rate, transportation, industrial, social policies.
2.Example:-European economic the community has transformed into an economic union called the European Union in 1991.

Specified Bank Notes (Cessation of Liabilities) Act 2017?

On February 27, 2017 Government of India notified the  Specified Bank Notes (Cessation of Liabilities) Act 2017.The Act repealed the Specified Banknotes (Cessation of liabilities) Ordinance 2016 providing for cessation of liabilities for the Specified Banknotes (SBNs) and for matters connected therewith and incidental thereto, with effect from December 31, 2016. The SBNs cease to be the liabilities of the Reserve Bank under Section 34 of the RBI Act and cease to have the guarantee of the Central Government.

A grace period has been provided during which the Specified Bank Notes can be deposited at five RBI Offices (Mumbai, New Delhi, Chennai, Kolkata, and Nagpur by Indian citizens who make a declaration that they were outside India between November 9 and December 30, 2016, subject to conditions or any class of persons for reasons that may be specified by notification by the Central Government. The Reserve Bank, if satisfied after making the necessary verifications, that the reasons for failure to deposit the notes till December 30, 2016 are genuine, will credit the value of notes in the KYC (Know Your Customer) compliant bank account of the tenderer.

The grace period for resident Indians expired on March 31, 2017. For non- resident Indians (Indian passport holders), the grace period is till June 30, 2017.

Any person aggrieved by the refusal of the Reserve Bank to credit the value of notes as mentioned above may make a representation to the Central Board of the Reserve Bank within 14 days of the communication of such refusal to him/her.

In terms of Section 6 of the Act, whoever knowingly or wilfully makes any false declaration shall be punishable with a fine which may extend to 50,000 INR or five times the amount of the face value of the SBNs tendered whichever is higher.

In terms of Section 5 of the Act, with effect from December 31, 2016 no person shall knowingly or voluntarily hold, transfer or receive any specified banknotes. After the expiry of grace period, holding of not more than 10 notes in total, irrespective of denomination or not more than 25 notes for the purpose of study/ research/ numismatics is permitted. Also, nothing contained in this section shall prohibit the holding of specified banknotes by any person on the direction of a court in relation to any case pending in the court. For deposit of confiscated SBNs, GoI has notified Specified Ban Notes (Deposit of Confiscated Notes) Rules 2017 on May 12, 2017.

In terms of Section 7, contravention of Section 5 shall be punishable with fine which may extend upto 10,000 INR or five times the face value of the SBNs involved in the contravention, whichever is higher.

In case the contravention/default in terms of Sections 6 and 7 is by a company, every person who was in charge of and responsible to the company at the time of contravention/ default shall deemed to be guilty and will be liable to be proceeded against and punished. If the offence is proved to be attributable to the conduct by any director/manager/secretary/officer/employee of the company, such person shall also be deemed to be guilty of the offence and will be liable to be proceeded against and punished accordingly

Source -RBI.

The Cournot Model:

The Cournot Model

Antoine Augustin Cournot
Born: 28 August 1801
Died: 31 March 1877
Known for: Cournot competition, Oligopoly

Antoine Augustin Cournot  was a French

philosopher, mathematician, and an economist who contributed to the development of economic theory.

The oldest determinate solution to the duopoly problem is by the French economist Antoine Augustin Cournot in 1838 who took the case of two mineral water springs situated side by side and owned by two firms A and B. 

Assumptions: 

This model is based on certain assumptions which are as follows-

1. interdependence-There are two independent sellers. In other words, the interdependence of the duopolists is ignored.
2. Homogeneous product-They produce and sell a homogeneous product, mineral water.
3. Perishable good-The total output must be sold out, being perishable and non-storable.
4. The number of buyers is large.
5. Each seller knows the market demand curve for the product.
6. production cost-The cost of production is assumed to be zero.
7. Both have identical costs and identical demands.
8. Each seller decides the quantity he wants to produce and sell in each period.
9. But each is ignorant about his rival’s plan about output.
10. At the same time, each seller takes the supply or output of its rival as constant.
11. Neither of them fixes the price for its product, but each accepts the market demand price at which the product can be sold.
12. The entry of firms is blocked.
13. Each seller aims at obtaining the maximum net revenue or profit.

Explanation:-

Given these assumptions, suppose there are two mineral water springs exploited by two firms, A and B. The market demand curve is DD1, and its marginal revenue curve is MR, as shown in Figure 1. The marginal costs of both A and В are assumed to be zero so that they coincide with the horizontal axis.Suppose firm A is the only producer in which case it produces and sells OA (=½ OD1) quantity when it’s MR, equals its marginal cost curve (horizontal axis) at point A. It charges the monopoly price AS (=OP) and earns ОASP as monopoly profits.

Now firm В enters the market and expects that A will not change its output level OA. It, therefore, regards SD1 segment of the market demand curve as its demand curve. Its corresponding marginal revenue curve is MR2 which intersects the horizontal axis (its marginal cost curve) at point B. Thus it produces and sells AB (= ½ AD1 = BD1) quantity at BG (=OP1) price and it expects to earn BGTA profits.Firm A finds that with the entry of B, the price has fallen to OP1from OP. As a result, its expected profits decline to OP JA. In this situation, it tries to adjust its price and output. Accordingly, assuming that В will continue to sell the same quantity AB (=BD1), it regards the remaining portion of the market OB available to it. It thus sells ½OB. The reduction in its output from OA (=½OD1) to AB (= ½ OB) causes the price to rise (not shown in the figure to simplify the analysis).As a result of A’s reduction in output, В thinking that A will continue to produce less, reacts by increasing its output to ½(OD1-AB) which causes the price to fall. In this way, A’s reducing its output and causing the price to rise, and B’s reaction in increasing its output and causing the price to fall, will ultimately lead to an equilibrium price OP2. At this price, the total output of mineral water is OF, which is equally divided between the two firms.Each duopolist sells 1/3 of the market i.e. A sells ОС and В sells CF. At this price, A’s OCLP2 equal that of B’s profits CFRL. It is evident that both the producers sell 2/3 of the total output, OD1 and each is producing 1/3 of OD1.

under perfect competition:-

Let us compare the Cournot duopoly solution with the perfectly competitive solution. The duopoly firms A and В in equilibrium charge OP2 price and sell OF output. Under perfect competition, the total output will be OD at zero prices. The price is zero because the marginal cost is zero. When the MR1 curve intersects the horizontal axis, which is the MC curve, the price is zero at point A in the figure.The total output OD1 will be divided between A and В equally as OA and AD1 Notice that in the Cournot solution, the price OP2 exceeds the zero marginal cost and zero prices under perfect competition, and the output OF is less than OD1 under perfect competition. However, in the Cournot solution, the output (OF) is greater than it would be under monopoly (OA). But the price under monopoly (OP) would be higher than under the Cournot solution (OP2).

conclusion:-

The Cournot model can be extended even to more than two firms. As more and more firms enter the oligopoly industry, the equilibrium output and price of the industry will approach the perfectly competitive output OD1 and the zero prices.

It's Criticisms:-

The Cournot model has been criticised on the following grounds:-

(A)The main defect in Cournot’s solution is that each seller assumes his rival’s supply fixed, despite repeatedly observing changes in it. Joseph Bertrand, a French mathematician, criticising Cournot in 1883 pointed out that seller A in order to regain all the customers lost to B, will fix a price slightly below that fixed by В and price cutting may continue until the price becomes zero. Thus, Bertrand argued that there would not be any limit to the fall in price since each seller could by doubling his produce, and underbid his rival. This would tend to drive down the price to the competitive level in the long-run.(B)The model is silent about the period within which one firm reacts and adjusts its output to the moves of the other. Thus it is a static model.(C)The Cournot solution is unrealistic because it assumes zero cost of production.(D)It is a closed model because it does not allow entry of firms.(E) The assumption that each duopolist can act without any output reaction from the other is unrealistic. It is, in fact, a no-learning-by-doing model.(F) Marshall, therefore, regarded Cournot’s model as “incapable of a universal solution.” This is because it is not possible to find an actual duopoly market where each duopolist acts autonomously and output is the ‘sole parameter of action’.

BANKS AND THEIR TAG LINES

Here we are giving some important banks and their tag lines. we mostly see various banking exams include questions based on this section. if you are preparing for the probationary officer (PO)/clerk/SO this is a very important section to cover in banking awareness. 

We hope you would like this. if you have any suggestions and questions, please comment.

1. Allahabad Bank ------------------------A tradition of trust
2. Andhra Bank ------------------------ - Where India Banks
3. Bank of Baroda ----------------------- India’s International Bank
4. Bank of India ------------------------- Relationships beyond Banking
5. Bank of Maharashtra ---------------- One Family One Bank
6. Canara Bank -------------------------- Together we Can
7. Central Bank of India --------------- - Build A Better Life Around Us, Central to you since 1911
8. Corporation Bank ---------------------Prosperity for all
9. Dena Bank -----------------------------Trusted Family Bank
10. Indian Bank ---------------- ---Taking Banking Technology to Common Man, Your Tech- friendly bank
11. Indian Overseas Bank --------------- Good people to grow with
12. Oriental Bank of Commerce --------Where every individual is committed
13. Punjab National Bank --------------- The Name you can Bank Upon
14. Punjab & Sind Bank --------- -------- Where service is a way of life
15. Syndicate Bank -----------------------Your Faithful And Friendly Financial Partner
16. Union Bank of India ------------------Good people to bank with
17. United Bank of India --------                The Bank that begins with “U”
18. UCO Bank ----------------------------- Honours Your Trust
19. Vijaya Bank ---------------------------- A friend You can Bank Upon
20. IDBI Bank Ltd ---------------------- -- Banking for all.                                                                     
21. Bharatiya Mahila Bank -----------------Empowering women, Empowering India

STATE BANK GROUP

1.  State Bank of India ------  The Nation banks on us; Pure Banking Nothing Else; With you all the way
2.  State Bank of Patiala ------------------------------------- Blending Modernity with Tradition
3.  State Bank of Hyderabad --------------------------------- You can always bank on us
4.  State Bank of Mysore ------------------------------------ Working for a better tomorrow
5.  State Bank of Travancore -------------------------------- A Long Tradition of Trust

PRIVATE SECTOR BANKS                 

1.  Citi Union Bank Ltd.----------------------------- Trust and Excellence since 1904
2.  Dhanlaxmi Bank Ltd -----------------------------Tann. Mann. Dhan
3.  ICICI Bank Ltd ------------------------------------Khayal Aapka
4.  IndusInd Bank Ltd. ------------------------------ We make money simple
5.  ING Vysya Bank Ltd. ----------------------------- Jiyo easy
6.  Karnataka Bank Ltd. ------------------------------ Your family bank across India
7.  Kotak Mahindra Bank Ltd. ---------------------- Let’s make money simple
8.  Tamilnad Mercantile Bank Ltd. ----------------- Be a step ahead of life
9.  The Catholic Syrian Bank Ltd. ------------------ Support all the way
10.  The Federal Bank Ltd. ---------------------------- Your perfect banking partner
11.  HDFC Bank Ltd. ----------------------------------- We understand your world
12.  The Jammu & Kashmir Bank Ltd. ---------------- Serving to Empower
13.  The Karur Vysya Bank Ltd. ----------------------- Smart way to bank
14.  The Lakshmi Vilas Bank Ltd. -------------------- The Changing Face of prosperity
15.  The Nainital Bank Ltd. --------------------------- Banking with personal touch
16.  South Indian Bank Ltd. ------------------------- Experience Next Generation Banking
17.  Yes Bank Ltd. -------------------------------
18.  Citi Union Bank Ltd.----------------------------- Trust and Excellence since 1904
19.  Dhanlaxmi Bank Ltd -----------------------------Tann. Mann. Dhan
20.  ICICI Bank Ltd ------------------------------------Khayal Aapka
21.  IndusInd Bank Ltd. ------------------------------ We make money simple
22.  ING Vysya Bank Ltd. ----------------------------- Jiyo easy
23.  Karnataka Bank Ltd. ------------------------------ Your family bank across India
24.  Kotak Mahindra Bank Ltd. ---------------------- Let’s make money simple
25.  Tamilnad Mercantile Bank Ltd. ----------------- Be a step ahead of life
26.  The Catholic Syrian Bank Ltd. ------------------ Support all the way
27.  The Federal Bank Ltd. ---------------------------- Your perfect banking partner
28.  HDFC Bank Ltd. ----------------------------------- We understand your world
29.  The Jammu & Kashmir Bank Ltd. ---------------- Serving to Empower
30.  The Karur Vysya Bank Ltd. ----------------------- Smart way to bank
31.  The Lakshmi Vilas Bank Ltd. -------------------- The Changing Face of prosperity
32.  The Nainital Bank Ltd. --------------------------- Banking with personal touch
33.  South Indian Bank Ltd. ------------------------- Experience Next Generation Banking
34.  Yes Bank Ltd. ------------------------------------- Experience our expertise
35.  AXIS Bank Ltd. ----------------------------------- Everything is the same except the name.

SSC CGL 2017 TIER-I PAPER ON 10 AUGUST..

 GA Questions SSC CGL  Tier-1 10th August.

Shift-1

Q1. A question related to plant hormone?

Q2. Nephrons are part of which system?

Ans:Kidney

Q3. Which of the following mughal emperor was illiterate?

Ans:Akbar

Q4.  What is the Loss of electron oxidation is called?

Ans: Oxidation

Q5. One question related to liberalisation globalisation and privatisation.

Q6. Jan 2017 TPP exit country?

Ans:US

Q7. Anions are formed due to?

Ans: gain of one or more electrons.

Q8. What is the product of Mass velocity called?

Ans:Momentum.

Q9. Who appoints the Governor of state?

Ans:The President

Q10. How many bits in IP Address?

Ans:32

Q11. Question related to temples and corresponding countries?

Srilanka: padmanabhaswamy temple

Q.12 who invented World wide web?

Ans:Tim Berners-Lee

Q13. What causes Acid rains?

Ans:sulphur dioxide and nitrogen oxide

Q14. Who wrote Rekha's Biography?

Ans:Yasser Usman

Q15.One question related to Balance of Payment?

Q16. What is the SI unit of current?

Ans:Ampere

Q17.Strait of Malacca is between which two countries?

Ans:Indonesia and Malaysia

Q18.B. Sai Praneeth is related to which sport?

Ans: badminton

Q19.The latitudes that passes through sikkim also pass through?

Ans:Rajasthan

 Shift-2 

Q1.Who won US open men's Final?

Ans:Stanislas Wawrinka

Q2.Recently who got noble prize for peace?

Ans:Juan Manuel Santos

Q3.India has signed an agreement with which country regarding crude oil (petroleum)?

Ans:UAE

Q4. an  Era of Darkness -Book by

Ans:Shashi Tharoor

Q5.Sodium chloride chemical formula-

Ans:NaCl

Q6.One Question related to freedom fighter

Q7.National emergency article number ?

Ans:Article 352

Q8. Greenhouse effect related question.

Q9. The Bardoli Satyagraha was started by?

Ans: Sardar Vallabhbhai Patel

Q10.Plants Photosynthesis related questions.

Q11. Which blood group is Universal acceptor?

Ans:Group AB

Q12. State Emergency or President's Rule comes under which Article?

Ans:Article 356

Q13. President is the member of which house ?
And. He is not a member of any house.

Q14. One Question related to Global warming?

Shift-3

Q1. Who received Sanjay Chopra award 2017
ANs. Sumit mamgain

Q2. Who is the Author of 'My story' book?

Ans:Kamala Suraiyya

Q3.What is Insulin ?

Ans:Insulin is a hormone made by the pancreas

Q4. What is the Full form of jpeg?

Ans:Joint Photographic Experts Group

Q5.Question on microeconomics?

Q6.Madhuri Dixit associated with which dance form?

Ans:Kathak

Q7. Gas leakage in bhopal gas tragedy ?

Ans:Methyl Isocyanate

Q8.Which Governor General is known as the Father of Indian Civil Services?

Ans: lord Cornwallis.

Q9.49th parallel is the boundary line of?

Ans:Between USA and Canada.

Q10. What is the Min. age for governor of a State?

Ans:35 years

Q11. The term ' Gambit ' is associated with which Sport?

Ans:Chess

Q12. Match the following
Thomson, Curie : electron, penicillin etc.

Q13. Cryolite is the ore of?

Ans:Cryolite (Na3AlF6) - ore of Aluminium

Q14. Red plus green equals to?

Ans:Yellow

Q15.Cinnamon is obtained from ?

Ans:Bark

Q16. Who was the Successor of Har Gobind Guru ?

Ans:Guru Har Rai

Q17. Which country is not the part of SAARC?

Ans:Afghanistan, Bangladesh, Bhutan, India, Nepal, the Maldives, Pakistan and Sri Lanka.

Q18. Why objects appear above in the lake?

Ans:Refraction

Q19. What is an endothermic reaction ?

Ans: system absorbs energy from its surroundings

Q20. What carries impure blood in heart ?

Ans:The pulmonary artery carries impure blood



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SSC CGL 2017 TIER-1 PAPER ON 8 AUGAST

1st shift

1st shift of the exam (8th August).

Q1. What is the name of Acid found in Ants?
Ans-Formic Acid

Q2. Who verifies President Impeachment?
Ans- Both Houses

Q3. How many types of Writs are there in the Constitution?

Ans- Five(5)

Q4. Which is the largest state in terms of Area in India?

Ans- Rajasthan

Q5. Which is the largest state with maximum coastline?

Ans- Gujarat

Q6. Galileo's law also known as?

Ans- Law of Inertia

Q7. The function of Xylem in plants?

Ans- Transportation of water

Q8. Itai-itai disease is caused by?

Ans-Cadmium Poisoning

Q9. What is the full form of LAN?

Ans- Local Area Network

Q10. What is Railway Vikalp scheme?

Ans- Vikalp scheme will give waitlisted passengers berths in other trains at no extra cost.

Q11. What is important for food security?

Q12. Questions related to storage, MSP, Fair price store etc?

Q13. Which film is the winner of Oscar 2017?

Ans. Moonlight

Q14. The highest production of opium in India?

Ans. Arunachal Pradesh

Q15.Cholera was discovered by?

Ans. Robert Koch

Q16.Who is the ex officio president of the Indian Parliamentary Group?

Ans. Speaker of Lok Sabha

Q17. Who built Vijay Stambh?

Ans. Rana Kumbha

Q18.Monument built by Maharana Pratap Singh?

Q19.Which country was involved in Jal Sanrakshan Samjhauta with India?

Ans. Israel

Q20.The writer of the book"citizen and society'?

Ans. Mohammad Hamid Ansari

Q21.Different women players of cricket,  hockey?

Shift-2

2nd shift of the exam (8th August).

Q1.How many fundamental duties are in the Constitution of India?

Ans. Eleven (11)

Q2.Who said the following quote " Back To Vedas"?

Ans. Dayanand Saraswati

Q3. What is part-IV of Indian Constitution?

Ans. Directive Principles of State Policy

Q4. Bulb filament is made of ?

Ans. Tungsten

Q5. Which book is written by Sania Mirza?

Ans. Ace Against Odds

Q6. Rover cup is related to which sport?

Ans. Football

Q7.Raja Todar Mal is related to which empire?

Ans. Finance Minister of the Mughal empire

Q8.Who invented dynamite?

Ans. Alfred Nobel

Q9.A question related to National Development Council.

Q10. Trees that lose all their leaves once a year are called?

Ans- Deciduous

Q11.  What transports water from the roots to leaves in plants?

Ans- Xylem transports water and solutes from the roots to the leaves.

Q12.Anaemia is the loss of ?

Ans. Blood (Iron Deficiency)

Q13. Which of the following is not a vector quantity?

Ans- Speed

Q14. Question related to primary,  secondary and tertiary sector?

Q15. What is gain of electron called?

Ans. Reduction

Q16. Disease caused by female anopheles?

Ans. Malaria



3rd shift

GA Questions asked in SSC CGL Tier-1 (8th August-Shift-3)

Q1. Who got Literature 2016 Noble Price?

Ans. Bob Dylan

Q2. Villi is found in which part of human body?

Ans. Small Intestine

Q3. Which living organism is segmented from head to tail?

Q4. From which country India adopt Presidentship?

Ans. USA

Q5. Synapse is the gap between?

Ans. A synapse is a structure that permits a neuron (or nerve cell) to pass an electrical or chemical signal to another neuron.

Q6. Who is the musician in the Raja Agrsen's Palace?

Q7. Duge-the Hightest brigde formed in 2016 by which country?

Ans. China

Q8. One question from book and author.

Q9. Who is the architecture of Lucknow?

Q10. How much increment in 7th pay commission?
And.3%

Q11. Who is know for Hindu Muslim unity in Lucknow session?




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AFCAT 2017

AFCAT paper 27 August 2017 

1. Upnishads were based on – philosophy
2. Uzbekistan capital- Tashkent
3.  Air Force Chief on 31 Dec 2016- Marshall birender singh dhanoa
4. Where was the first Indian National Congress at time of WC Banerjee- Bombay 28-31 December 1885
5. PV Sindhu won in Indian Super series series against whom- Carolina Marin
6.  Who was defence minister in 1962 war- V.k Menon
7. Kheoldev National park is located in- bharatpur Rajasthan
8. Mohiniattyam is from which state- Kerala
9.  Itutmish was from which dynasty- slave dynasty
10. Asian Games , XVIII asiad location- Indonesia
11.  Bogey is associated with which game- golf
12. Who won Vijay hazard trophy- cricket, tamil nadu are the current winner.
13.  Juan Manuel Santos won Nobel prize in which field- peace
14.  WHO headquarters- Geneva
15. Satpura hills located in-  Maharashtra
16.  Who proposed the Preamble before the Drafting Committee of the Constitution-Jawaharlal Nehru
17.  Which one is not Bharat Ratna awardee posthumously-– Gulzari Lal Nanda
18. Thomas trophy related to which sport?- badminton
19. Mahatma Gandhi starts Satyagrah from which place of bihar?- champaran
20. The Old Man and the Sea’ book noble laureate – Ernest Hemingway
21. The international date line passes through- Bering Strait 
22. Prairies grassland- North America
23. Most abundant gas of universe- Hydrogen
24. Baglihar Dam- Chenab
25. Winner of Kabbadi World Cup- India

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GST (goods and services tax)

Goods and Service Tax (GST) is a comprehensive tax levy on manufacture, sale and consumption of goods and service at a national level under which no distinction is made between goods and services for levying of tax. 
GST will be levied on all transactions such as sale, transfer, purchase, barter, lease, or import of goods and/or services
It will mostly substitute all indirect taxes levied on goods and services by the Central and State governments in India.When GST (goods or services tax) rolls out on 1 July 2017, it will be the biggest tax reform since Independence. GST will subsume a large number of central and state taxes into a single tax, paving the way for a common national market.

Some of the following taxes will be bound together by the GST:

• Central Excise Duty
• Commercial Tax
• Value Added Tax (VAT)
• Food Tax
• Central Sales Tax (CST)
• Octroi
• Entertainment Tax
• Entry Tax
• Purchase Tax
• Luxury Tax
• Advertisement tax

The Goods and Service Tax or GST which is how it is popularly called world over, was first introduced in France in the year 1954. It was consequently after France that countries like Japan, South Korea, UK and Australia implemented the GST law.
There are around 160 countries in the world that have GST in place. GST is a destination based taxed where the tax is paid by the consumer. 

Most of the countries have a unified GST system but India is going to  adopted the Dual GST model, the first was  Canada who adopt dual gst model. It can be easily understand with the help of following diagram.

The most crucial aspect of this tax regime is the rate of GST that prevails on the various categories of products.

Under GST, goods and services will be taxed at the following rates, 

1. 0%,
2.  5%, 
3. 12%, 
4. 18%,
5.  28%. 

There is a special rate of 0.25% on rough precious and semi-precious stones and 3% on gold.

GST rates of some countries are given below:-

Country	Rate of GST
Australia	10%
France	19.6%
Canada	5%
Germany	19%
Japan	5%
Singapore	7%
New Zealand	15%

To be continue.....

Defects in agricultural marketing policy in India

1. Lack of Storage Facility:2. Distress Sale:3. Lack of Transportation:4. Unfavourable Mandis:

5. Intermediaries:6. Unregulated Market’s:7. Lack of Market Intelligence:8. Lack of Organisation:9. Lack of Grading:10. Lack of Institutional Finance

11. Unfavorable Conditions:

12. Unfavorable agricultural price policy

13. Multiple charges

14. Lack of proper knowledge etc.

DIFFERENT KINDS OF ISSUES OF SHARES CAPITAL.

What are the different kinds of Issues?

Primarily issues can be classified as a Public, Rights or preferential issues (also known as private placements). When public and rights issues involve a detailed procedure, private placements or preferential issues are relatively simpler. The classification of issues is illustrated below;

 Public issues can be further classified into initial Public offerings and further public offering. In a public offering, the issuer makes an offer for new investors to enter its shareholding family. The issuer company makes detailed disclosures as per the DIP guidelines in its offer document and offers it for subscription. The significant features are illustrated below:

Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for the listing and trading of the issuer’s securities.

A Further Public Offering (FPO) is when already listed company makes either afresh issue of securities to the public or an offer for sale to the public, though an offer document. An offer for sale is such scenario is allowed only if it is made to satisfy listing or continuous listing obligations.

Rights Issue (RI) is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a particular ratio to the number of securities held prior to the issue. This route is best suited for the companies who would like to raise capital without diluting stake of its existing shareholder unless they do not intend to subscribe to their entitlements.

A private placement is an issue of shares or of convertible securities by a company to a selected group of persons under section 81 of the companies Act,1956, which is neither a right issue nor a public issue. This is a faster way for a company to raise equity capital.

A private placement of share or of convertible securities by a listed company is generally known by name of preferential allotment. A listed company going for preferential allotment has to comply with the requirements contained in Chapter Xlll of SEBI (DIP) Guidelines pertaining to preferential allotment in SEBI (DIP)guidelines which inter-alia include pricing disclosures in notice etc, in addition to the requirements specified in the Companies Act.               

  A Qualified Institutions Placement is a private placement of equity shares or securities convertible in to equity shares by listed company to qualified institutions Buyers only in terms of provision of chapter Xlll A of SEBI (DIP) guidelines. The Chapter contains provision relating to pricing, disclosures, currency of instruments etc.