March 13, 2024

Section 189 – THE INDIAN CONTRACT ACT, 1872

THE INDIAN CONTRACT ACT, 1872 / /

Agent’s authority in an emergency An agent has authority, in an emergency, to do all such acts for the purpose of protecting his principal from loss as would be done by a person of ordinary prudence, in his own case, under similar circumstances.Illustrations(a) An agent for sale may have goods repaired if it be necessary.(b) A consigns provisions to B at Calcutta, with directions to send them immediately to C, at Cuttack. B may sell theprovisions at Calcutta, if they will not bear the journey to Cuttack without spoiling. 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Hyderabad | Company Registration in Bangalore | Company Registration in Chennai | Company Registration in Kolkata | Company Registration in Mumbai | Company Registration in India | Company Registration in Gurgaon | Company Registration in Noida | Company Registration in lucknow Complete CA Services CA in Delhi | CA in Gurgaon | CA in Noida | CA in Jaipur | CA Firm in India RERA Services RERA Rajasthan | RERA Haryana | RERA Delhi | UP RERA Most read resources tnreginet |rajssp | jharsewa | picme | pmkisan | webland | bonafide certificate | rent agreement format | tax audit applicability | 7/12 online maharasthra | kerala psc registration | antyodaya saral portal | appointment letter format | 115bac | section 41 of income tax act | GST Search Taxpayer | 194h | section 185 of companies act 2013 | caro 2020 | Challan 280 | itr intimation password |  internal audit applicability |  preliminiary expenses |  mAadhar |  e shram card |  194r |  ec tamilnadu |  194a of income tax act |  80ddb |  aaple sarkar portal |  epf activation |  scrap business |  brsr |  section 135 of companies act 2013 |  depreciation on computer |  section 186 of companies act 2013 | 80ttb | section 115bab | section 115ba | section 148 of income tax act | 80dd | 44ae of Income tax act | west bengal land registration |

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 Minimum Order Quantity (MOQ)

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Having the right amount of inventory is vital to sustaining a business. You need to meet demand, but you don’t want to hold onto stock you can’t sell. In a perfect world, you would set up reorders on a schedule, and in quantities exactly designed to meet customer needs. Purchasing, however, isn’t always that simple. It’s enough of a challenge to find suppliers who sell exactly what you need at a fair price. Many manufacturers and suppliers also set minimum order quantities (MOQs) to ensure they’re making a profit. What is minimum order quantity (MOQ)? Minimum order quantity is the smallest number of products that you must purchase in one order from a supplier. Suppliers set MOQs to avoid wasting resources on orders that deliver them little or no profit.MOQ can be based on the number of units or the total order value. Here’s an example:You buy pens at $.20 each. Your supplier’s MOQ for pens is 1,000 units. This means you’ll have to spend a minimum of $200 on pens per order. Different types of products will require different MOQs; an item that costs a lot to produce is likely to have a lower MOQ than products that are easy and cheap to produce. Difference between MOQ and EOQ Understanding the differences between MOQ and EOQ (economic order quantity) is essential for making informed purchasing decisions. While MOQ is dictated by your supplier’s constraints, EOQ is determined by your business’s need to balance costs and meet customer demand efficiently. It’s the ideal order size that minimizes the total cost of inventory. This includes costs such as ordering, holding, and shortage costs. Calculating EOQ helps you determine the most cost-effective quantity to order, balancing between ordering too much and facing high holding costs and ordering too little, leading to stockouts and potential lost sales.  By strategically managing these two metrics, you can optimize inventory levels, reduce costs, and maintain a smooth supply chain, ultimately contributing to the success and profitability of your retail business. Why do suppliers use MOQ? Covering production costs and ensuring profitability. Suppliers set MOQs to ensure that each order covers their fixed production costs like labor, materials, and machinery setup, maintaining their profitability. Streamlining the production process. By producing larger, consistent quantities, suppliers optimize manufacturing efficiency, reduce waste, and manage resources more effectively. Enhancing quality control and speed. Higher, consistent production volumes allow for better quality control and quicker turnaround times, ensuring a reliable supply of goods for customers.  Maintaining business viability. MOQs ensure that every order contributes positively to the supplier’s bottom line, making their business model sustainable. Creating mutually beneficial relationships. MOQs help suppliers build better relationships with factories and with business owners like you, thanks to consistent production processes, quality, and lead times. Benefits of MOQs Benefits for suppliers Better cash flow. When setting MOQs, suppliers take their total cost of inventory into account and pair it with any other expenses they have to pay before reaching the desired profit level. When this is managed well, their cash flow is healthier and more predictable. Reduced inventory costs. Some suppliers don’t even produce goods until a buyer who can meet their MOQ makes a purchase. This keeps stock out of their warehouse and reduces both inventory and manufacturing costs.  Increased profit margins. As noted, supplier MOQs are usually set up in a way that ensures a certain profit margin. Often, they will only order new stock when their sales reach a level that creates an operating profit. This means that even a relatively low MOQ will offer the safety net they need. Benefits for buyers Saving on bulk purchases. If you work with suppliers that have MOQs, you’ll know you’re getting the best price per unit. Buying products in bulk results in savings and more profit on each unit sold.  Enhanced relationships with suppliers. Your ideal purchase quantity may differ from your supplier’s MOQ. This means you’ll need to work with your supplier to reach a solution. These negotiations can create stronger relationships. Types of MOQs Simple MOQ- As the name suggests, simple MOQs are easy to understand. You’ll need to agree on a minimum spend or minimum quantities before you place an order with your supplier.  A perfect example of this might be a supplier of personalized merchandise. It wouldn’t be worth the resources needed to add a logo or color scheme to a mug or a pen if the buyer was only looking to purchase a small number of items. Complex MOQ- Two or more requirements will be in place when you’re looking to buy from a supplier with a complex MOQ. You might have to reach a minimum quantity of units as well as a minimum order value, and the requirements might be even more complex than that.  For example, let’s say you’re sourcing fabric for your clothing line; the supplier might require an MOQ in yards or meters of fabric per color. They will set up an MOQ that takes minimum spend, minimum quantities, and minimum measurements of fabrics into account. As the buyer, you’ll need to match all the conditions to be able to place an order. How to calculate minimum order quantity if you design and manufacture your own products for in-store or online sales, you might find yourself setting MOQs for wholesale orders to other retailers. It’s crucial to understand how MOQs are calculated, as they can vary significantly based on industry and product type. Factors like fluctuating raw material costs and component part prices mean that MOQs aren’t static. Suppliers gather extensive data to pinpoint the MOQ that maximizes profitability, considering various key parameters in their calculations. This knowledge can also help you anticipate and adapt to changes in your purchasing conditions. Determine demand Calculate holding costs Find the break-even point Set minimum order quantity 1. Determine demand- Demand will vary and be influenced by a variety of factors, including product type, competition, and seasonality. Suppliers review historical data to forecast demand and use it to define the inventory quantities needed to satisfy market fluctuations.  2. Calculate holding costs- Depending on the products sold and their

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Central Government Health Scheme

Government Schemes / /

The Central Government of India has been providing comprehensive medical care to the Central Government employees and pensioners for as long as the last six decades under the Central Government Health Scheme. The Scheme is designed to cater to the healthcare and needs of beneficiaries who are eligible. These beneficiaries are individuals who comprise to form the four pillars of the country’s democratic set up specifically Legislature, Judiciary, Executive and the Press. The Central Government Health Scheme is a primary health care facility provider which stand unique than any other scheme due to its generous open-ended system of providing health care and its large beneficiary base. Objective and Components of CGHS Dispensary services including domiciliary care. M.C.H and F.W Services Consultation facilities from Specialists at Dispensary, Polyclinic and Hospital. Services such as X-Ray, ECG and Laboratory Examinations. Hospitalisation Organising for the purchase, storage, distribution and supply of medications and other necessities. Health Education for all beneficiaries. Eligibility n individual who belongs to any of the following groups mentioned below is eligible to avail the benefits under the Central Government Health Scheme. Any employee of the Central Government who draws their salary from Central Civil Estimates. The family members who are entirely dependant on a Central Government Employee who draws their salary from the Central Civil Estimates. It should be noted that they should reside in the areas covered under the Scheme. Individuals who are pensioners and family pensioners of the Central Government who obtains a pension from the Central Civil Estimates. Both, Ex-Members and Sitting Members of the Parliament. Ex-Vice Presidents Freedom fighters Retired Judges of any of the High Courts. Journalists who are accredited with the Press Information Bureau Employees of the Indian Railway Board Police Personnel of the state of Delhi. Employees of certain autonomous bodies or pensioners that have been granted the benefits of the Central Government Health Scheme in Delhi. Procedure of Registration The process of registration for Pensioners A pensioner may register under the Central Government Health Scheme and obtain a CGHS card from the office of the Additional Director/ Joint Director of their city. Documents required for Pensioners Below listed are the documents needed to register for the CGHS for pensioners. An application in the prescribed format. The proof of residence of the pensioner. The proof of residence of the dependant of the pensioner. Certificate of Disability if any. The proof of age of the son of the pensioner. Photos of the beneficiary family members. Certificate of Surrender, if the pensioner has an active CGHS card. Attested copies of the Last Pay Certificate. A draft for the required amount towards CGHS contribution. Provisional Card, if PPO is not provided. The procedure of registration for Current Employees If an existing employee of the Central Government wants to register themselves for CGHS, the individual will have to submit an application form of the prescribed format along with the necessary photos and documents of the family members to the concerned authority (Ministry/ Department/ Office) where they are working at the moment. Types of Medical Systems covered he Central Government Health Scheme provides health care through the systems of medicine listed below. Allopathic Homoeopathic Ayurveda Siddha Unani Yoga Facilities Offered Indoor treatment at all empanelled and government hospitals. Out Patient Department treatment that includes the issue of medicines as well. Reimbursement of the costs for treatment in a private or government hospital in the case of an emergency. Consultation with Specialists at government or polyclinic hospitals. Medical investigations at all empanelled and government hospitals. Services such as Maternity, Family and Child Health services are provided. Reimbursement of the costs incurred by purchasing medical appliances, artificial limbs, hearing aids and similar products. Cashless facility for treatments at diagnostic centres and empanelled hospitals for sanctioned and identified pensioners and beneficiaries. Dispensing of medications under the Homeopathy, Ayurveda, Unani and Siddha systems of medicines along with appropriate medical consultation. Treatments Not Covered Follow-up treatment or inpatient treatment that is not covered under the Central Government Health Scheme are listed below. At times of an emergency, the treatment of a beneficiary is allowed at any hospital. However, the medical claim must be submitted to the additional director of the respective city where the individual’s CGHS card is registered. Where there is no emergency, the beneficiary of the CGHS will be permitted to avail treatment from a Local, State or a Central Government hospital. However, it should be noted that prior approval has the attained from the Chief Medical Office in charge of the CGHS WC that is in the city where the individual’s CGHS card is registered. There is a list of approved CSMA/ Empanelled hospitals under the ECHS from where the treatments may only be availed. When there is a need for a follow-up treatment regarding the case of a hip/ knee replacement, neuro/ cardio surgery, cancer or renal transplant, the beneficiary of the CGHS is permitted to receive follow up treatments in any of the hospitals on the approved list under the condition that the individual has received prior permission from the Chief Medical Officer in charge. For reimbursement for medical expenses, the amount that may be claimed is limited to the rates according to the CGHS, and be treated in any hospital. However, the medical claim has to be submitted to the additional director of the city in which the individuals CGHS card is registered. Cost of the CGHS Facilities The cost of the CGHS facilities differs from each other depending on if the individual is a serving employee or a pensioner of the Central Government of India. For Serving Government Employees Central Government employees who are currently serving in the area covered by the CGHS has the advantage of obtaining the CGHS card. A deduction for this purpose is made from the salary that they receive from their department every month. The deduction is made depending on the pay grade of the employee. For Pensioners When a pensioner wants to avail the facilities provided by the CGHS, the individual will have

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Tax Planning for Individuals under Income Tax

Income Tax / /

ax Planning is the process of evaluating a financial plan or conditions in relation to taxes in order to achieve the greatest possible tax efficiency by coordinating all of the financial plan’s elements to function efficiently with regard to taxes. A financial plan’s key component is tax planning, which lowers tax obligations and increases contributions to retirement plans. Additionally, in order to get the greatest outcomes, various retirement plans and investments must be combined with Tax Filing and deductions. Tax planning places a strong emphasis on several factors, including the timing of income, the timing of purchases, the magnitude of expenditures, and the planning associated with those expenditures. Tax Planning for Individuals under Income Tax Act, 1961 All taxpayers in India have access to a variety of tax-saving choices. Wide-ranging exclusions and deductions are possible with these alternatives, which helps keep the overall tax burden under control. Sections 80C through 80U offer deductions, which qualified taxpayers may claim. These deductions are made from the total amount of tax obligations. Other provisions of the Income Tax Act, of 1961, such as tax credits and exemptions, might lower your tax obligations. Tax planning is entirely legal and, in fact, a wise choice when done within the boundaries established by the relevant authorities. However, employing shady strategies to evade tax obligations is against the law, and you risk legal repercussions. Tax avoidance, tax evasion, and tax planning are all ways to save money on taxes. The only legal way to lower your tax obligations out of these is through tax planning. The government provides a variety of tax-saving alternatives with the goal of lowering tax burdens on taxpayers through ethical income tax planning strategies. Types and Role of Tax Planning Any person’s potential to thrive financially depends on their ability to manage their taxes since one cannot avoid paying taxes if their income is in a certain income tax bracket. The right tax planning assists people in streamlining their tax payments, ensuring returns over a specific time period, and lowering their tax liabilities. Three categories of planning, including tax planning, are as follows: Adaptive tax planning that complies with the law is known as Permissive Tax Planning. Tax preparation that is done with a specific goal in mind is referred to as purposeful tax planning. Long-Range/Short-Range Tax planning is the planning done at the beginning and at the end of the fiscal year. Benefits and Importance of Tax Planning Although paying taxes is a big part of a person’s obligation to the country, you may use financial planning to reduce your taxes while still carrying out your civic duty by taking advantage of the government’s tax-saving programs. If you carefully follow the tax planning guidelines created by a CA or CS specialist,  Timing of income, the timing of purchases, budgeting for expenses, and size are all factors to be taken into account during tax planning. Tax planning is essential for both small and large enterprises since it will aid in accomplishing business-related objectives. Benefit from a deduction for Tax Planning Individuals and members of the Hindu Undivided Family are eligible for advantages under deductions under Sections 80C and 80CC of the Income Tax Act, 1961. If the policy is taken out in the individual’s name, the name of his/her spouse, or the names of his/her children, the premiums paid during the policy duration are eligible for tax savings under this provision. Only premium amounts whose values do not exceed 10% of the total amount covered in the policy issued on or after April 1, 2012, are eligible for this sort of deduction. The deduction will be permitted for premium payments of up to 20% of the aggregate insured amount for policies issued before March 31, 2012. These advantages are available on investments up to 1, 50,000 in life insurance products in accordance with Section 80C of the Income Tax Act, 1961. Under Section 80CCC: Only pension plans are eligible for deductions. For up to one lakh fifty thousand in premiums paid to the plan, deductions are permitted. Under Section 80D: Along with policies purchased in the names of a person, his or her spouse, and any dependent children, deductions are available for individuals or a member of a Hindu Undivided Family. The highest amount that may be deducted is 25000 rupees. However, if the policy is in the name of the parents, an extra deduction advantage of 25,000 rupees can be obtained. Under Section 80DD: The annual deduction for premiums paid on insurance taken out in the name of a dependant who is disabled is INR 75,000 (disability is greater than 40% but less than 80%). For persons who are severely handicapped (disability is greater than 80%), a deduction of INR 1, 25,000 is permitted. This deduction has a set amount that is made regardless of actual spending. Under Section 10 (10D): Taxes are not applied to benefits received under a life insurance policy. Such benefits also include any money received from the insurance under Section 80DD (3), the Key Man Insurance Policy, or in bonus form. Under Section 80C: Through tax-saving investment programs, Section 80C allows taxpayers to save up to INR 1, 50,000 per year in taxes. The best of these is the equity-linked savings scheme (ELSS), which provides a dual advantage of tax reduction and financial gain. Other government savings programs, like as Public Provident Fund (PPF), tax-saving FDs, and National Savings Certificate (NSC), are also quite advantageous and provide deductions of up to INR 1.5 lakh when cumulative deposits are made in these choices. Payments paid for children’s school or tuition fees and principal repayment on house loans are also eligible for deductions under Section 80C. The HRA Exemption: Taxpayers who rent an apartment are entitled to claim an HRA exemption on the rent they pay as long as they present the rent receipts issued by their landlord. The least of the following amounts of exemption is available for the claim: The total HRA granted. 10% of the base pay minus the total amount of rent paid. Taxpayers who

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Institutional investors

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The financial market is a complex ecosystem hosting a large variety and number of components. It naturally comprises a diverse range of participants on either end of the spectrum as well. And the crowd of investors in it are no exception in that regard. Just as there are individual investors, the financial market also hosts a significant band called an institutional investor. This category of investors carries a critical role in the financial market owing to their distinct features as market players.  Meaning of Institutional Investor An institutional investor is a company or organization that invests money on behalf of other people. Mutual funds, pensions, and insurance companies are examples. Institutional investors often buy and sell substantial blocks of stocks, bonds, or other securities and, for that reason, are considered to be the whales on Wall Street.The group is also viewed as more sophisticated than the average retail investor and, in some instances, they are subject to less restrictive regulations. The Role of Institutional Investors An institutional investor buys, sells, and manages stocks, bonds, and other investment securities on behalf of its clients, customers, members, or shareholders. Broadly speaking, there are six types of institutional investors: endowment funds, commercial banks, mutual funds, hedge funds, pension funds, and insurance companies. Institutional investors face fewer protective regulations compared to average investors because it is assumed the institutional crowd is more knowledgeable and better able to protect themselves. Institutional investors have the resources and specialized knowledge for extensively researching a variety of investment opportunities not open to retail investors. Because institutions are moving the biggest positions and are the largest force behind supply and demand in securities markets, they perform a high percentage of transactions on major exchanges and greatly influence the prices of securities. In fact, institutional investors today make up more than 90% of all stock trading activity. Types of Institutional Investors  Any entity that collects funds from a number of sources to buy and sell securities is an institutional investor. By that understanding, there are five types of institutional investors in the market. These are:  Mutual Funds- It’s the most popular among this category. Mutual funds are vehicles facilitating investment in a variety of securities with capital commitment from several investors, both individual and otherwise. In other words, numerous entities invest their capital, which is pooled and in turn, invested in a bag of securities called mutual funds. Qualified fund managers handle each MF. Thus, individuals with a limited understanding of stock market dynamics can rely on this instrument to mobilize their disposable income. Nearly every mutual fund includes an array of liquid securities. Therefore, members can retract their investment anytime. Moreover, the securities invested via MFs usually span across several industries or types. It’s designed to minimize the risk of capital loss, wherein the gains from one dilute loss in another security kind.  Hedge Funds-Another popular instrument in line with institutional investor meaning is a hedge fund. It can be best described as an investment partnership where the money collected from members is pooled to invest in securities. Here, there’s a fund manager, who’s called the general partner, and a bevy of investors called limited partners. Its characteristics are somewhat consistent with mutual funds’, in that they are designed to reduce risk and enhance returns via a diverse portfolio. However, hedge funds distinguish themselves with more aggressive investment policies and are also more exclusive compared to MFs.  Therefore, they are also perceived as riskier. Naturally, returns are even more substantial here.  Insurance Companies- Insurance companies are heavyweight institutional investors. These institutions employ the premium they receive from policyholders into securities. Since the aggregate of premiums is considerable, their investments are also sizable. The returns insurance companies receive from trading are deployed to pay for claims.  Endowment Funds- Endowment funds are set up by foundations, where the administrative/executive entity utilizes the funds for its cause. Typically, schools, universities, hospitals, charitable organizations, etc. establish these funds. Here, the investment usually acts as a deductible for the investor. These funds are so designed that the principal remains intact, and the controlling organization uses the investment income to finance its activities.  Pension Funds- Pension funds are also a popular form of institutional investors. Both an employer and an employee can invest in pension funds. The accumulated capital goes toward the purchase of different kinds of securities.  There are two kinds of pension funds –  Where the pensioner receives a fixed sum irrespective of how the fund fares.  Where the pensioner receives returns based on the performance of the fund.  Retail Investors vs. Institutional Investors Retail and institutional investors are active in a variety of markets like bonds, options, commodities, forex, futures contracts, and stocks. However, because of the nature of the securities and the manner in which transactions occur, some markets are primarily for institutional investors rather than retail investors. Examples of markets primarily for institutional investors include the swaps and forward markets.  Retail investors typically buy and sell stocks in round lots of 100 shares or more; institutional investors are known to buy and sell in block trades of 10,000 shares or more.3 Because of the larger trade volumes and sizes, institutional investors sometimes avoid buying stocks of smaller companies for two reasons. First, the act of buying or selling large blocks of a small, thinly-traded stock can create sudden supply and demand imbalances that move share prices higher and lower. In addition, institutional investors typically avoid acquiring a high percentage of company ownership because performing such an act may violate securities laws. For example, mutual funds, closed-end funds, and exchange-traded funds (ETFs) that are registered as diversified funds are restricted as to the percentage of a company’s voting securities that the funds can own. FAQs What are institutional investors? Institutional investors are entities that pool large sums of money to invest in various financial instruments and assets. These entities typically include pension funds, mutual funds, insurance companies, endowments, hedge funds, banks, and sovereign wealth funds. What distinguishes institutional investors from individual investors? Institutional investors differ from individual investors in terms of the scale of their investments, their investment goals, and their regulatory requirements. Institutional investors often manage large portfolios on behalf of multiple beneficiaries or stakeholders,

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