GST Concept & Status

  

Introduction

The introduction of Goods and Services Tax (GST) would be a very significant step in the field of indirect tax reforms in India. By amalgamating a large number of Central and State taxes into a single tax, it would mitigate cascading or double taxation in a major way and pave the way for a common national market. From the consumer point of view, the biggest advantage would be in terms of a reduction in the overall tax burden on goods, which is currently estimated to be around 25%-30%. Introduction of GST would also make Indian products competitive in the domestic and international markets. Studies show that this would have a boosting impact on economic growth. Last but not the least, this tax, because of its transparent and self-policing character, would be easier to administer.

GST and Centre-State Financial Relations

Currently, fiscal powers between the Centre and the States are clearly demarcated in the Constitution with almost no overlap between the respective domains. The Centre has the powers to levy tax on the manufacture of goods (except alcoholic liquor for human consumption, opium, narcotics etc.) while the States have the powers to levy tax on sale of goods. In case of inter-State sales, the Centre has the power to levy a tax (the Central Sales Tax) but, the tax is collected and retained entirely by the originating States. As for services, it is the Centre alone that is empowered to levy service tax. Since the States are not empowered to levy any tax on the sale or purchase of goods in the course of their importation into or exportation from India, the Centre levies and collects this tax as additional duties of customs, which is in addition to the Basic Customs Duty. This additional duty of customs (commonly known as CVD and SAD) counter balances excise duties, sales tax, State VAT and other taxes levied on the like domestic product. Introduction of GST would require amendments in the Constitution so as to concurrently empower the Centre and the States to levy and collect the GST.

 

The assignment of concurrent jurisdiction to the Centre and the States for the levy of GST would require a unique institutional mechanism that would ensure that decisions about the structure, design and operation of GST are taken jointly by the two. For it to be effective, such a mechanism also needs to have Constitutional force.

Constitution (One Hundred and First) Amendment Act, 2016

To address all these and other issues, the Constitution (122nd Amendment) Bill was introduced in the 16th Lok Sabha on 19.12.2014. The Bill provides for a levy of GST on supply of all goods or services except for Alcohol for human consumption. The tax shall be levied as Dual GST separately but concurrently by the Union (central tax - CGST) and the States (including UnionTerritories with legislatures) (State tax - SGST) / Union territories without legislatures (Union territory tax- UTGST). The Parliament would have exclusive power to levy GST (integrated tax - IGST) on inter-State trade or commerce (including imports) in goods or services. The Central Government will have the power to levy excise duty in addition to the GST on tobacco and tobacco products. The tax on supply of five specified petroleum products namely crude, high speed diesel, petrol, ATF and natural gas would be levied from a later date on the recommendation of GST Council.

 

The Constitution Amendment Bill was passed by the Lok Sabha in May, 2015. The Bill was referred to the Select Committee of Rajya Sabha on 12.05.2015. The Select Committee had submitted its Report on the Bill on 22.07.2015. The Bill with certain amendments was finally passed in the Rajya Sabha and thereafter by Lok Sabha in August, 2016. Further the bill had been ratified by required number of States and received assent of the President on 8th September, 2016 and has since been enacted as Constitution (101st Amendment) Act, 2016 w.e.f. 16th September, 2016.

Goods and Services Tax Council (GSTC)

The GSTC has been notified with effect from 12th September, 2016. GSTC is being assisted by a Secretariat. Thirteen meetings of the GSTC have been held so far. The following major decisions have been taken by the GSTC:

 

(i) The threshold exemption limit would be Rs. 20 lakh. For special category States enumerated in article 279A of the Constitution, threshold exemption limit has been fixed at Rs. 10 lakh.

(ii) Composition threshold shall be Rs. 50 lakh. Composition scheme shall not be available to inter-State suppliers, service providers (except restaurant service) and specified category of manufacturers.

 

(iii) Existing tax incentive schemes of Central or State governments may be continued by respective government by way of reimbursement through budgetary route. The schemes, in the present form, would not continue in GST.

 

(iv) There would be four tax rates namely 5%, 12%, 18% and 28%.

Besides, some goods and services would be under the list of exempt items. Rate for precious metals is yet to be fixed. A cess over the peak rate of 28% on certain specified luxury and demerit goods would be imposed for a period of five years to compensate States for any revenue loss on account of implementation of GST. The Council has asked the Committee of officers to fit various goods and services in these four slabs keeping in view the present incidence of tax.

(v) The five laws namely CGST Law, UTGST Law, IGST Law, SGST Law and GST Compensation Law have been recommended.

(vi) In order to ensure single interface, all administrative control over 90% of taxpayers having turnover below Rs. 1.5 crore would vest with State tax administration and over 10% with the Central tax administration. Further all administrative control over taxpayers having turnover above Rs. 1.5 crore shall be divided equally in the ratio of 50% each for the Central and State tax administration.

(vii) Powers under the IGST Act shall also be cross-empowered on the same basis as under CGST and SGST Acts with few exceptions.

(viii) Power to collect GST in territorial waters shall be delegated by Central Government to the States.

(ix) Formula and mechanism for GST Compensation Cess has been finalised.

(x) Four rules on input tax credit, composition levy, transitional provisions and valuation have been recommended. Further five Rules on registration, invoice, payments, returns and refund, finalized in September, 2016 and as amended in light of the GST bills introduced in the Parliament, have also been recommended.

 

Salient Features of GST

 

The salient features of GST are asunder:

 

(i) GST would be applicable on “supply” of goods or services as against the present concept of tax on the manufacture of goods or on sale of goods or on provision of services.

 

(ii) GST would be based on the principle of destination based consumption taxation as against the present principle of origin based taxation.

 

(iii) It would be a dual GST with the Centre and the States simultaneously levying it on a common base. The GST to be levied by the Centre would be called Central GST (CGST) and that to be levied by the States [including Union territories with legislature] would be called State GST (SGST). Union territories without legislature would levy Union territory GST (UTGST).

 

(iv) An Integrated GST (IGST) would be levied on inter-State supply (including stock transfers) of goods or services. This would be collected by the Centre so that the credit chain is not disrupted.

 

 

(v) Import of goods would be treated as inter-State supplies and would be subject to IGST in addition to the applicable customs duties.

 

(vi) Import of services would be treated as inter-State supplies and would be subject to IGST.

 

(vii) CGST, SGST /UTGST & IGST would be levied at rates to be mutually agreed upon by the Centre and the States under the aegis of the GSTC.

 

(viii) GST would replace the following taxes currently levied and collected by the Centre:

 

a) Central Excise Duty;

b) Duties of Excise (Medicinal and Toilet Preparations);

c) Additional Duties of Excise (Goods of Special Importance);

d) Additional Duties of Excise (Textiles and Textile Products);

e) Additional Duties of Customs (commonly known as CVD);

f) Special Additional Duty of Customs (SAD);

g) Service Tax;

h) Cesses and surcharges in so far as they relate to supply of goods or services.

 

(ix) State taxes that would be subsumed within the GST are:

 

a) State VAT;

b) Central Sales Tax;

c) Purchase Tax;

d) Luxury Tax;

e) Entry Tax (All forms);

f) Entertainment Tax (except those levied by the local bodies);

g) Taxes on advertisements;

h) Taxes on lotteries, betting and gambling;

i) State cesses and surcharges insofar as they relate to supply of goods or services.

 

 

(x) GST would apply to all goods and services except Alcohol for human consumption.

 

(xi) GST on five specified petroleum products (Crude, Petrol, Diesel, ATF & Natural gas) would be applicable from a date to be recommended by the GSTC.

 

(xii) Tobacco and tobacco products would be subject to GST. In addition, the Centre would continue to levy Central Excise duty.

 

(xiii) A common threshold exemption would apply to both CGST and SGST. Taxpayers with an annual turnover of Rs. 20 lakh (Rs. 10 lakh for special category States as specified in article 279A of the Constitution) would be exempt from GST. A compounding option (i.e. to pay tax at a flat rate without credits) would be available to small taxpayers (including to specified category of manufacturers and service providers) having an annual turnover of up to Rs. 50 lakh. The threshold exemption and compounding scheme would be optional.

 

(xiv) The list of exempted goods and services would be kept to a minimum and it would be harmonized for the Centre and the States as well as across States as far as possible.

 

(xv) Exports would be zero-rated.

 

(xvi) Credit of CGST paid on inputs may be used only for paying CGST on the output and the credit of SGST/UTGST paid on inputs may be used only for paying SGST/UTGST. In other words, the two streams of input tax credit (ITC) cannot be cross utilized, except in specified circumstances of inter-State supplies for payment of IGST.

 

The credit would be permitted to be utilized in the following manner:

 

a) ITC of CGST allowed for payment of CGST & IGST in that order;

b) ITC of SGST allowed for payment of SGST & IGST in that order;

 

 

c) ITC of UTGST allowed for payment of UTGST & IGST in that order;

d) ITC of IGST allowed for payment of IGST, CGST & SGST/UTGST in that order.

 

ITC of CGST cannot be used for payment of SGST/UTGST and vice versa.

 

(xvii) Accounts would be settled periodically between the Centre and the State to ensure that the credit of SGST used for payment of IGST is transferred by the originating State to the Centre. Similarly the IGST used for payment of SGST would be transferred by Centre to the destination State. Further the SGST portion of IGST collected on B2C supplies would also be transferred by Centre to the destination State. The transfer of funds would be carried out on the basis of information contained in the returns filed by the taxpayers.

 

(xviii) Input Tax Credit (ITC) to be broad based by making it available in respect of taxes paid on any supply of goods or services or both used or intended to be used in the course or furtherance of business.

 

(xix) Electronic filing of returns by different class of persons at different cut-off dates.

 

(xx) Various modes of payment of tax available to the taxpayer including internet banking, debit/ credit card and National Electronic Funds Transfer (NEFT) / Real Time Gross Settlement (RTGS).

 

(xxi) Obligation on certain persons including government departments, local authorities and government agencies, who are recipients of supply, to deduct tax at the rate of 1% from the payment made or credited to the supplier where total value of supply, under a contract, exceeds two lakh and fifty thousand rupees (Rs. 2.5 lac).

  

(xxii) Refund of tax to be sought by taxpayer or by any other person who has borne the incidence of tax within two years from the relevant date.

 

(xxiii) Obligation on electronic commerce operators to collect ‘tax at source’, at such rate not exceeding two per cent. (2%) of net value of taxable supplies, out of payments to suppliers supplying goods or services through their portals.

 

(xxiv) System of self-assessment of the taxes payable by the registered person.

 

(xxv) Audit of registered persons to be conducted in order to verify compliance with the provisions of Act.

 

(xxvi) Limitation period for raising demand is three (3) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in normal cases.

 

(xxvii) Limitation period for raising demand is five (5) years from the due date of filing of annual return or from the date of erroneous refund for raising demand for short-payment or non-payment of tax or erroneous refund and its adjudication in case of fraud, suppression or willful mis-statement.

 

(xxviii) Arrears of tax to be recovered using various modes including detaining and sale of goods, movable and immovable property of defaulting taxable person.

 

(xxix) Officers would have restrictive powers of inspection, search, seizure and arrest.

 

(xxx) Goods and Services Tax Appellate Tribunal would be constituted by the Central Government for hearing appeals against the orders passed by the Appellate Authority or the Revisional Authority. States would adopt the provisions relating to Tribunal in respective SGST Act.

 

(xxxi) Provision for penalties for contravention of the provision of the proposed legislation has been made.

(xxxii) Advance Ruling Authority would be constituted by States in order to enable the taxpayer to seek a binding clarity on taxation matters from the department. Centre would adopt such authority under CGST Act.
 (xxxiii) An anti-profiteering clause has been provided in order to ensure that business passes on the benefit of reduced tax incidence on goods or services or both to the consumers.
 

(xxxiv) Elaborate transitional provisions have been provided for smooth transition of existing taxpayers to GST regime. 

Benefits of GST

(A) Make in India

(i) Will help to create a unified common national market for India, giving a boost to Foreign investment and “Make in India” campaign;

 

(ii) Will prevent cascading of taxes as Input Tax Credit will be available across goods and services at every stage of supply;

 

(iii) Harmonization of laws, procedures and rates of tax;

 

(iv) It will boost export and manufacturing activity, generate more employment and thus increase GDP with gainful employment leading to substantive economic growth;

 

(v) Ultimately it will help in poverty eradication by generating more employment and more financial resources;

 

(vi) More efficient neutralization of taxes especially for exports thereby making our products more competitive in the international market and give boost to Indian Exports;

 

(vii) Improve the overall investment climate in the country which will naturally benefit the development in the states;

 

(viii) Uniform SGST and IGST rates will reduce the incentive for evasion by eliminating rate arbitrage between neighboring States and that between intra and inter-State sales;

(ix) Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption, which in turn means more production thereby helping in the growth of the industries . This will create India as a “Manufacturing hub”.

 (B) Ease of Doing Business

(i) Simpler tax regime with fewer exemptions;

 

(ii) Reductions in the multiplicity of taxes that are at present governing our indirect tax system leading to simplification and uniformity;

 

(iii) Reduction in compliance costs - No multiple record keeping for a variety of taxes - so lesser investment of resources and manpower in maintaining records;

 

(iv) Simplified and automated procedures for various processes such as registration, returns, refunds, tax payments, etc;

 

(v) All interaction to be through the common GSTN portal - so less public interface between the taxpayer and the tax administration;

 

(vi) Will improve environment of compliance as all returns to be filed online, input credits to be verified online, encouraging more paper trail of transactions;

 

(vii) Common procedures for registration of taxpayers, refund of taxes, uniform formats of tax return, common tax base, common system of classification of goods and services will lend greater certainty to taxation system;

 

(viii) Timelines to be provided for important activities like obtaining registration, refunds, etc;

 

(ix) Electronic matching of input tax credits all - across India thus making the process more transparent and accountable.

 

(C) Benefit to Consumers:

(i) Final price of goods is expected to be lower due to seamless flow of input tax credit between the manufacturer, retailer and service supplier;

 

(ii) It is expected that a relatively large segment of small retailers will be either exempted from tax or will suffer very low tax rates under a compounding scheme- purchases from such entities will cost less for the consumers;

 

(iii) Average tax burden on companies is likely to come down which is expected to reduce prices and lower prices mean more consumption.

Ref: http://www.cbec.gov.in/htdocs-cbec/gst

Thanks for reading!

What after qualifying CA?Job or private practice?

Well, isn't it that almost all CA students sometime in their journey to become a CA has faced such a dilemma? Practice or Job? Our choice of firm for articleship depends on this one question! But seldom we get the answer. Let me try to solve the mystery for you.

1. Exposure - In job you get exposure only for a particular domain. Say, if you get into Assurance (Audit) department of any corporate, you will just be doing audit work. Nothing more! That too, if you get any particular industry (say manufacturing or healthcare), you will work in that only. That means you will specialize in one particular field. To grow from there is up to your own talent. Go for further specializations, certifications etc. to keep yourself update with the latest developments in your field and rise the corporate ladder with confidence and lot of perks. The exposure that corporate gives cannot be matched. They work for very high profile clients and therefore you get practical exposure to all things that you study in your curriculum (like IFRS, Derivative valuations, AS 30,31,32 etc.) Remember, that would be in particular field only and you will be totally cut off from other areas until of course you are very keen to update yourself of all the developments related to other domains as well. Trust me, it will require lot of hard work!

On the contrary in practice, you get exposed to various fields. Accounting, Taxation, Audit, Compliance, Legal etc. You keep yourself updated with various things. You apply bit of everything that you have studied. It is like jack of all trades. But, it is up to you. In case you want to specialize in particular field and provide your services to your clients,go for post qualification courses and do specialization. 

2. Time & Money - If you want to go for job, try your best to at least qualify in first attempt, if not a rank holder. Companies pay more to those candidates who have qualified in one attempt. But, in case you have qualified in subsequent attempt then also do not lose heart! Unemployed CA is a myth and a hype! If you have strong knowledge, companies will come for you. Go for a big brand and profile of your choice for your first job. If you have to choose between package and profile, choose profile and brand name. It may be paying you less but the growth is more. That means subsequent jump in the package will be more as compared to a lesser known company. Jobs pay instantly. So it gives a sense of accomplishment that all your hard work has payed. Your growth depends on your hard work. If you are good, companies will pay you as per your demand.

On the other hand, money does not come easily in practice. It will require lot of hard work for initial few years. You have to put capital from your own pocket. Initially it's all expense. Don't get disheartened! Once you are well settled in your practice, money flows exponentially! Have patience and keep working!

3.Place - Your job may take you anywhere around the globe. You may settle in India (which will of course be metros) or somewhere else in the world. You may have to leave your parents behind (if they do not agree to leave their native place).

For practice, you have to settle at one place. If you have done your articleship from the same city where you want to set up your practice, it works to your advantage as you already have contacts. Your CA under whom you have done your articleship may help you in getting some assignments. If you are good at your work and have cordial relation with him, he may take you as a partner in his firm.That way, you not only get contacts but also big clientele. But if your place of articleship and practice is different, it will require some struggle to set your foot at new place. Hard work is the key!

4. Professionalism/Soft skills - It is said that one cannot succeed in professional and personal life if he lacks soft skills.Companies spend a lot of money on training to their employees on soft skills. That way, you enrich yourself without any extra cost, that too from very experienced and professional trainers! Whereas in practice you have to learn these aspects by yourself. It is required very much in practice. Liasoning, communication, problem solving ability etc are to name a few. Institute has also made it compulsory in Orientation and  GMCS curriculum to provide training in soft skills. Just don't attend these classes for completing a course but make it a part of your personality. You will benefit a lot by applying them in your practical life, whether in job or in practice.

5.Boss vs Employee - This we all know! No matter how good a job is, still you are a servant of the company! You will have a boss. You will be answerable and responsible to someone else. You can't take decisions based on your sweet will. But in practice, you are the king! You are answerable to yourself for your own actions. You will be responsible for anything good or bad that may happen as a consequence of your action. You can take risk as per your own will! All decisions would be based on your judgement.You don't have to ask or convince anybody. The learning is remarkable! Each experience makes you a better professional! 

6.Attitude - Last but the most important is your attitude. Do you have a mindset which favors being an employee or you are the one who is ready to take some more pain post qualification to set up his own practice? Can you work under somebody else and take others orders? If yes, you can go for job. If no, go for practice! Practice requires lot of confidence and struggle. Are you ready for that?

Some people suggest that they will work in corporate for some time, make contacts, generate funds and then will set up their practice. It is also a good option but remember, for that you have to stay at one place in your job and will require at least 10 years of corporate experience to accomplish that.It is so because, first of all, when you join a company, it is the entry level. It will require sometime to reach that position where you can actually make contacts. Also, it is difficult to save while you are in the job as one is habituated to an improved standards of living. As your income rises, so do your expenses! Savings do suffer! If you want to go for this option, plan accordingly!

Well, all said, the most important aspect is satisfaction. Go where you are get job satisfaction. You will definitely rise. Don't follow others blindly. Listen to your heart and then take the decisions.

I hope my article help in clearing a bit of air around job vs practice! If you have any other query, feel free o shoot it in the comment box. I promise I will reply!

Thanks for reading!

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Recognize your talent before you choose your carrer

Right from the time we are born, one questions that always haunt us is -beta, bade hoke kya banoge? (What do you want to do in life) At that time, obviously we are too young to answer that. But then there are few people who do reply on our behalf. Like, if you belong to a normal salaried class family and you are boy , then definitely an engineer, if you are a girl, then doctor . If you have a family business, then definitely you are going to join the same. If either of your parent is a professional, say doctor or lawyer or CA, then you are expected to take forward the legacy. Then we are groomed that way, right from our childhood days. Constantly such thoughts are sowed in our mind such that it becomes a part of our personality. However, in the process, something is lost, something which nobody else can tell except we ourselves. That is our own talent! Everyone born on this planet is blessed with some unique ability. The whole purpose of our education system is to bring out the best in students, based on their ability, and then send them into the society to serve at mass. It may be in any form, be it a Doctor, Engineer, Manager, Teacher, Civil Servants, Businessman etc. The aim should be to develop the inherent quality and not only the marketable one! However, the scenario today is just the opposite.The goal has shifted from talent to what quality is in demand?Which one will fetch more money, name & fame? Is it B.Tech + MBA, or CA+MBA or M.B.B.S + MD, Civil Servants or any other course? Roughly, more than 60% students don't chose their career. I don't mean that their parents force them to do so but what I mean is that they follow herd behavior. Something that suits your friend may not be suitable for you. Why to follow others? Determine what YOU really want to do! What are Your abilities? Do you LOVE being what you are Today? Or your heart is lying somewhere else? Is it giving you happiness & satisfaction? The benchmark for judging one's success should be the happiness index and not monetary index. If you really want to be happy, choose a field which is in resonance with your talent and ability. 

It is easy said than done. Some common questions that bother us are:- 

• How to recognize our talent? 
• What if it's too late?
• Has it got any future?
• What if I fail?
• Should I leave my comfort zone to pursue it? 

These are basic questions. Let me try to answer some of them, based on my experiences;

First, How to recognize our talent? This is the most herculean task! To answer it, rewind yourself to your school days. Think about what were the things in which you were the best! Was it teaching some very difficult concept to your friend in easy way, or you were an excellent motivator? Or perhaps an unmatched painter! Or a Guitarist? Or an orator?Or  you just loved cooking? Something in which you excelled! Something that you miss being today. That is your talent! It may be that you were good at many things but out of that, THE ONE QUALITY which describes you, is your talent!

Next is about timings. Well, it's never too late to start! There are numerous stories where people realized their dreams at a very late stage in their life. They were late because either they realized their talent very late or it took them some time to gather courage to move out of their comfort zone! Yet, they succeeded! So could you!

Third is about the future of your talent.Hmm,,my experience says that there is no dearth of market for any kind of talent. If you have it, there will be people who would be interested in paying a good price for it! But it doesn't happen in a day! It takes time. Ups & Downs do happen! Don't stop believing in yourself! Have positive attitude, attitude that every problem comes with solution. Be determined to succeed! Work on your shortcomings! Grab the opportunities!Success will follow!

Next is the fear of failure  ! It is a very genuine concern. I mean, we all have responsibilities! If we fail, who will take care of it? Well. my dear friends, first of all, if you have your heart & soul in your work, it is very unlikely that it will fail! It may happen that it may not work up to your expectations, but calling it a failure would be gross injustice to your hard work. Anyways, to answer that, first determine you risk taking capacity. Next, determine how you would want to go ahead with your idea. Have a backup plan for your finances ( like if both husband & wife are working, one can forego his /her job to pursue his dreams while the other can support monetarily).

Last one is how to get out of our comfort zone? To overcome inertia is a big big task! Have strong will power. Don't delay! Don't hesitate! Determine & follow! Read inspiring stories where people have fought against all odds to achieve their dreams. Be inspired and inspire others!

When I was a student, there were lot of confusion in my mind about my career, Lot many unanswered questions, dilemma etc. Once I got job, I thought that would be an end to all. But that never happened! They still came hovering my mind! However, God has planned something interesting for me! I returned to Lucknow, leaving my well paying job, due to some personal reasons. I started teaching UG and PG students. To my surprise, people two generations younger to me were facing the same questions that once I faced! Nothing changed in these 10 years! Students were still clueless as to what do they wanted to do in life! That means, still our education system was unable to acknowledge the problems faced by the students. That experience changed my life! I realized that this is what I really wanted to do! Education was my field! To teach , to guide and to help students! No matter whether it pays me enough or not, but the satisfaction that I get when students understand the concept,  their expression when their problems are solved is priceless! This is my story. My little contribution to nation building!

Thank You for reading!

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Time Management -I ( Students)

Hello! My dear students, here I am again! On your request I am writing how to manage your time. But, is it really possible to do that? Remember Mahabharata of 90's - "Main Samay hoon! Kaal ka chakra kisi ke liye nhi rukta!" (I am time and I stop for none). That means time will pass, no matter what.  How YOU choose to utilize that time determines success or failure.

God has been very kind to us. He has impartially given us 24 hours. Each one of us get the same amount of time. Neither a second less, nor a second more! But sometimes it appears that the other person has got some extra time to cover all his tasks while we are still struggling to reach half way even though its time to retire for bed! Result? Tension, worry, guilt feeling, mounting pressure etc. Next day we have new tasks to perform over and above of what is left of yesterday. That means we are piling lots of work with limited capacity and ability to finish them. Consequently, we miss deadlines for assignments, couldn't complete our course before exams, no proper revision etc.etc.etc.

What could be the possible reason?  The reason is your choice of work in those 24 hours. How that choice will be determined depends on your planning and determination! Whatever you have determined, do it with full vigor! Did you decide to study or socialize? If  your decision is to study, then to study what? Was it your favorite subject or the neglected one? If you decide to socialize, how much time you have spent on that? Was it the RIGHT TIME to do that?

I have some tips for you. For convenience the topic has been divided into three sections:

1. Regular College days
2. Examination Preparation days
3. During Examination time

Regular College Days

Make a time table of your daily activity. For example:

5:30 AM                     - Wake up

5:30-6:00 AM             - Freshen up/ read newspaper

6:00-7:00 AM             - Exercise

7:00-8:00 AM             - Self study

8:00- 8:30 AM            -Getting ready for college, including breakfast

8:30- 9:00 AM            - Travel time

9:00 AM - 2:00 PM     - College

2:00- 2:30 PM             - Lunch & Travelling

2:30 - 3:30 PM            - Coaching/ Learning other skill set

3:30 - 4:00 PM            - Travelling

4:00 - 4:30 PM            - Rest/Power nap/watching TV etc

4:30 - 6:30 PM            - Self study

6:30 - 6:45 PM            - Rest/ Socializing, including FB, Watsapp etc

6:45 - 9:15 PM            - Self Study

9:15- 9:45 PM             - Dinner

9:45 - 10:30 PM          - Self Study

10:30 PM - 5:30 AM   - Sleep

This is just an example. You can make your own schedule accordingly. Please keep the following points in consideration while preparing your schedule:

• Always take out time for self study. There is no substitute for that. Your college & coaching is waste if you do not put your own efforts. Also, Please DO NOT be completely dependent on coaching. When you join coaching center, they presume that you have certain basic level of knowledge. If you don't have that it is very unlikely that you will be benefited in a substantial way through it. Secondly, always make your concepts through good books rather than solely depending on coaching notes. Notes may be complete for examination purpose, but they do not make concepts. For that you have to work hard. You may pass the exam, but the real battle starts thereafter, for Jobs and career progression. Trust me, if you concepts are loose, you will find it extremely hard in the real world! So concentrate on concepts rather than just examination passing tips! Also, some students tend to make rough notes in class and fair them out afterwards. This is a complete time waste! Fair it out when you are taking down the notes first time itself. Have a strong concentration in class. Nothing can match the class room studies when the teacher is in front of you. So make the most use of it. Lastly, if you do not revise, you will forget! Even the most intelligent child ( I generally don't stick to traditional way of judging one's intelligence, but for understanding let's consider it to be the class topper) will forget what is taught in the class if he skips his regular revisions. 
• Make a time table for the subjects to be studied in a particular day. It may be all the subjects covered either in your college or coaching that day. Allocate time to study ALL the subjects! Spend regular time to study the one which is of least interest to you. That way you will build up your weak area. If you give all your time to one subject only, which is of course of your interest, you will do it at the cost of other subjects, But for passing the examinations, you need to qualify in all the subjects. So study more the subject you like but don't neglect others!
• To study individually or in group is your decision. Usually group study is better as two brains are better than one but only if group studies and not indulge in gossips and other activities. Also group studies can only be successful if they are backed by very strong individual studies. Further, only if all the members of the group contribute to the studies than all can benefit. Otherwise, it will be beneficial to some and detrimental to others.
• Spend at the most 15 - 20 min for reading news paper. That would be all to cover the relevant news and keep you updated.. 
• Spend only 15- 30 min in socializing. If it is online, you cannot afford to spare more than 15 min. When I set the time limit, I mean it for entire day. If you check your mobile at every notification, you don't realize how much time you have wasted! Pre decide at what time you wish to check your notifications. Do not touch your mobile phones between that. Don't attend unnecessary calls. They are a big time waste! Alternatively, if it is meeting your friend in person, make it a short visit to cut it in maximum 30 min. Roaming and talking unnecessarily are unproductive work. Your time is too precious to be spend on these activities. Keep your goodbyes a short one. Talks has no end! Limit them! If you are talking, give your talks a direction which helps you in achieving your goals, like discussing problem you are facing in any subject.
• Travelling time is beyond your control. Getting frustrated over traffic and distance will do no good. Instead, use your travel time. You can prepare for the topic which is going to be covered in the lecture today, revise what has been taught in college, have your lunch or just have a power nap to refresh yourself! That way you save up your time! You will have more time to explore those areas which were neglected because of our tight schedule!
• Have a healthy diet. If your health is doing fine, you will be more energetic and will have good concentration. As far as possible, keep away from junk and market food! Mother's cooked is the tastiest and the healthiest! I know it's difficult, but keep it to the minimum. Restrict yourself to having junk only once a month! 
• Rest do not necessarily mean sleep. It could be a brisk walk or your hobby like singing, dancing, playing guitar, painting or just talking to your mom! Anything that re- energizes you to get back to study table!
• Exercising is very very important. It keeps one in good shape, maintains health and also keep you energized for the whole day!  Don't skip exercise!
• Last but not the least, have a sound sleep. When you sleep, your mind should be free from all worries and tensions!. This phase is extremely necessary as it rejuvenates the body for next day!
• Remember, this is the time where you get ample time to build your concepts. If you have not done it now, you will never find the time to do so.

Examination Preparation days

Now your preparation leaves have started. What to do now?

• Make a schedule of your daily activity along with how much time you are going to spend on each activity. Just like the way in the above given example. Obviously, now major part of your time would be devoted to studies rather than anything else.
• Make a list of all the topics that you are required (and not want) to study in different subjects. You may not choose to complete 100% syllabus (though it is advisable), but the more you skip, the less marks you are probable of getting. For example if you choose to cover 70% of the syllabus, than you can anyways be judged by your attempt of 70% question paper. If you do it 100% correct (which is rare) , the max you can get is 70/100 and never more than that!. Further, you will loose out the concept of that 30% syllabus which you opted to miss. Here I want to mention that quality also matters. If you attempt 100% question paper but effectively write only 60% correct answers, than even though you have attempted a higher percentage of questions, yet you will score low. 
• Allocate specific time to each subject and each topic in it. Give more weight- age to that subject/topic which is your weak point. Keep revising your interest subjects as well. Don't be overconfident! 
• While making your schedule, prepare it in such a fashion that the subject which is due last in your examination schedule, is revised first, whereas, the first exam is revised at the last. That way your memory would be fresh for the first  paper and you will be confident of other subjects as well.
• This phase is not for starting a fresh but for revisions. The more you revise, the better would be the results.

Examination days

Now comes the D day! The examinations have arrived! Stress levels are at all time high! How to manage oneself during this period? 

• Don't start anything new in this period.
• Just revise what you have already studied.
• If your paper did not go as per your expectation, do not ponder over it. You can't change what has already happened. But you can certainly compensate it in next paper. Thinking about past paper will demotivate you. So just forget it!
• Stick to your body clock. Do not change it just because all your friends are studying late night. If rising early suits you, stick to that!. Any change in between can prove extremely costly.
• After your papers, do not discuss it. Rush back to prepare for your next exams. Also, by discussing you may realize your mistakes which you committed in the paper and thereby demoralizing you for next one.
• Relax in between the studies. It is very necessary to bring down the stress levels and freshen up the mind. But do not overdo it. Remember, you have limited time.
• Prepare your clothes, bag, stationary , admit card etc. a day before. It gives you some more time for revision on the day of the exam.
• Arrive at your examination center on time. Neither too early or late.
• Don't see other students either before or during the exams. Be confident of your own preparation. 
• Don't think that if other person is taking 1 or 2 extra sheets, he knows more than you or will get extra marks. Quality matters over quantity! 

That's it! Phew! Is it difficult? No, it just requires a strong will to implement!.

Let me highlight some major time waste activities for students:

1. The list is topped by more than required sleeping.
2. Next is Social Network sites like facebook, G+, Twitter, watsapp etc.
3. Day dreaming.
4. Long telephonic calls
5. Hanging around with friends
6. Watching TV
7.  Spending too much time on reading news paper (basically irrelevant news).
8. Long eating/ bathing hours.
9. Attending all the family functions.

Time is fixed, We cannot change that. But we can certainly change our daily activities to make the best use of it! Hope you find it useful! All the best!

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Effective Communication

Humans are the most advanced animal species created by God. What differentiate us from other species is that we have the tool of language to communicate with each other. However, we do not make best use of the communication power to excel in every aspect of life.   Is communication required only for professional success? No! By being a good communicator we make not only our professional life but personal life also less complicated, happy and satisfied. The main reason is that an effective communicator is able to effectively and satisfactorily convey his thoughts and feelings to the other party and get the desired results. Imagine the kind of stress one has to tackle when his/her work is getting delayed because the other party is not understanding the instructions properly thereby making mistakes and therefore requires repetition of the message. It delays the work, increases stress and strain the relationship! Thus, it is very essential to master this very important skill. But how? Let's find out.

First let us Define Communication (latin word: communicare) - communication is the act of conveying intended meaning from one entity or groups to other through the use of mutually understood language and signs. In simple language it means to convey message, idea or feelings from one individual to another, through a common medium, so that it is understood by the other party and the purpose/ intent is achieved.

Parties to communication -  There are two parties : Sender & Receiver

"Sender" is the person who starts the conversation. It may be an idea, thought, message, feeling or instruction. "Receiver" is the person to whom the message is intended or directed to.  Let us take the example of a class. The sender is the teacher "A" who is communicating with the students to impart a concept whereas the students " X,Y & Z" are the receiver who are listening to their teacher to gain knowledge.

Is it that whatever teacher teaches in the class is understood by all? More often than not , the answer is negative. That means somewhere, some link is broken because of which the teacher and the student do not lie on the same page as far as the understanding of the concept is involved.  A failed communication is a result of fault of either one or both the parties to communication. So let us now discuss what are the factors that hinder proper communication? They are also known as "Barriers to Communication". For our convenience, I have bifurcated them into Sender's issue, Receiver's issue and Common issues. They are:

Sender's Issue -

1. Unclear idea/thoughts - If the sender is himself not clear of the idea or thoughts that he wants to deliver, it is impossible for him to convey them appropriately to the audience. Thus, it is very essential that before communicating, one should have clarity in his mind of what he wants to tell.
2. Choice of wrong medium and language - The medium should be the one which is most convenient to all. If it is possible to convey the message face to face, it should be done, instead of texting in any form. It may be meeting in person or through video conferencing. If not, that medium should be chosen which is convenient to both like voice call, email, text message or watsapp. Similarly, the language should be as simple as possible. Always remember, the whole purpose of the language is that the underlying message should be successfully conveyed so that it is completely understood and thereafter satisfactorily worked upon by the other party. It is not to impress others. Don't use jargon. Use that language which is easily understandable by the receiver. 
3. Ego or wrong attitude - One should have respect for their audience. The felling of "I know it all" doesn't help. Have an empathetic attitude towards the listeners. If you have ego or attitude problem, that will certainly reflect in your words and action. The receiver will catch those signals and will develop resistance to your thoughts. Thus, leading to complete failure of communication. Not only this, such behavior may entice the receiver to act in complete disagreement to your instructions, thereby spoiling the work and causing troubles. In extreme cases it may lead to irreparable damage to relations. It is said that " you may win an argument, but you loose the opponent" It means that though you have been able to convince the other person with your explanations but in doing that you have pulled the relation to a point of no return. Always speak in a fashion where there is a win -win situation for both the parties.
4. Lack of interest in the topic of discussion - If the sender is uninterested in the topic of discussion, he will put only half efforts to explain it to others.  
5. Inappropriate choice of time, place or situation -  Choice of time and place is very important. If you try to put your point at a time when the receiver is in hurry, or there is some function at home, it is highly probable that your words would go unnoticed. Similarly, if somebody is grieving for some personal loss, and you try to tell that person about some fantastic business idea, it will go in vain! More soever, you are at risk of being called stupid for such behavior. Somethings are discussed in public and some in private. Choice of place should be such that in all situation the reputation of the receiver is not compromised. 
6. Lack of co-ordination between words , tone and body language - The words we speak should resonate with the tone, facial expression and body language. The receiver judge 40% of the conversation via vocal tone, pitch etc, 50% from facial expression and only 10% from words! So if there is any discrepancy in co-ordination of all the three, the receiver, in all probability, is going to ignore your words and will determine your intention from other means.
7. Poor listening skills - We all have heard this phrase that God has given us two ears and one mouth so that we speak less and listen more. Well, that is absolutely true! Only if you listen to the other party with full concentration, you will understand better the strengths, weakness and requirements of the you other party. Accordingly, you can customize your message to suit individual need. It saves a lot of time and effort! 
8.  Assumptions/Emotions -  Do not look at a person from any frame. That means, you should not judge a person or situation based either on someone else opinion or cause you think that other person will not understand based on no logical reasoning. The moment we assume, we develop resistance to approach the other party will full faith and honesty. You are therefore unable to  communicate your point effectively and hence the consequences follow.
9. Not selecting the right audience for communication -  It is very important to know the profile of the audience whom you are addressing to. Accordingly, the matter, medium and language is decided. Also, "How Much" is to be told is determined by the type of audience.  
10. Over expressive or less expressive way of communicating the idea - In either case the attention is shifted from the content to the expressions. They ( expressions) should be just right to convey your message, neither too much nor too less.
11. Unable to summarize the discussion and hence leaving loose ends as to what needs to be done - Summarizing helps in conveying what actually the whole conversation was about. It helps the receiver to conclude, in a short and effective manner, as to what all he needs to do , leaving no scope for confusion and ambiguity.
12.  Not getting feedback -  Once you have finished your side of conversation, ask the other party to re-phrase it. It confirms if both the parties have similar understanding or if there is some misunderstanding.  

Receiver's Issues

1. Inattentive - If the receiver is not paying attention to the sender's talk, it is a one sided conversation, and thus can never be succesful.
2. Uninterested in the topic -  If the topic is not of the interest of the receiver, he will not put efforts to listen and understand it. 
3. Mind is preoccupied with other thoughts -  When we speak, we can speak comfortably at 100-150 words per minute. However, our brain process at 450-500 words per minute. That means for some time, even during conversation, the listener's mind is processing some other thoughts. These thoughts divert the attention from the conversation and even if you are hearing but not listening. Sometimes we say, "sorry can you please repeat again? I was thinking about something else!" . It happens because of lack of concentration. 
4.  Assumptions/Emotions -  The listener should not assume as to what the speaker is about to tell. Pre judgments blocks the mind so that it does not become receptive to new ideas , thoughts or instructions. 
5. Poor Listening skills -  The receiver should also have good listening skill, especially patience to listen to somebody else and not force his thoughts on others.
6. Ego or wrong attitude -  The law is same for both sender and receiver. If the receiver thinks that he knows everything and whatever the sender would tell will be of no use to him, he will certainly miss some points which may be new and important to him.

Common Issues

1. External distractions - Like if you are conversing and different people are coming just to wish you a hello! Breakage of talks at regular or irregular intervals, sucks the life out of the conversation.
2. Noise - It means too much sound at the place of communication so that it becomes impossible to communicate.

After having understood the factors which leads to communication failure, let us now look as to what steps need to be taken to overcome them.

How to improve communication skills

• Improve listening skills
• Be clear in your thoughts and ideas. 
• Think before you speak
• Improve your knowledge base
• Increase your vocabulary
• Develop empathy
• Do not judge people
• Work on body posture and appearence
• Work on voice modulation
• Develop and control expressions
• Do not assume 
• Have a control on your emotions (Love, anger, excitement, sadness etc)
• Develop concentration power
• If possible, make a note of the important points of discussion
• Don't interrupt when other person is speaking
• Keep Smiling
• Ask open ended questions instead of the ones the answer of which is either Yes or No
• Keep asking relevant and intelligent questions which shows that you are genuinely listening
• Be assertive

How does communication skills help

• Develops confidence
• Increases respect in the society
• Decreases stress
• Improve relations
• Lot of unwanted problems are avoided
• Saves lot of time and energy
• Gives a sense of satisfaction

Despite all, it is impossible to have 100% successful communication at all times! However, efforts should be to be as close to perfection as possible. So go ahead and develop yourself.

Want to make your career in bank? Read the character traits required for banking industry

Banking jobs have always been lucrative. Good pay, employee benefits, respected job, job security etc. make it one of the most sought job profiles in India. Lot many people inspire to be a part of robust Indian economy through banking channel. But what  are the traits required for a successful banking career.  Do you have them in you? Find out! 
Please note that here I am illustrating the traits required for the entry level employees only.

1. Personality Traits - These are those traits which are inherent in one's​ character. Given the fact that every day frauds in banks are making headlines, these traits are the MOST IMPORTANT of all. They are:

• Honesty
• Integrity 
• Compliance

Honesty means that you perform your job without any bias and unfairness. In banking job it means that you perform you job with full conviction and without delaying it. It also means that you have thoroughly verified your work (like vouchers or loan papers) before passing it on to your senior (or colleague) for counter checking. If you are handling cash, then one has to be very careful of accepting or disbursing the currency. Same is the case with one who posts the entry. Any discrepancy in cash transactions may put a question mark on your honesty. When you are new into job, money through wrong means attract you. That's because it is an easy money. You will require years of service to generate that money with honesty. But dishonesty has short life. Once caught, your career is finished. An honest person is always valued in an organization. He rises high not only in his career but also in the eyes of others! Dishonesty is like a Ponzi scheme whereas honesty is like FD. Honesty is a virtue which one should have for living a happy & satisfied life. It not only helps you in professional world but in personal life as well. One gets demotivated when a dishonest person gets appreciation over honest person. The reason is that a dishonest person performs the work faster than his other counterpart. If you want to get recognition for your good work, make sure you complete it faster than the others! 

Integrity means that you stand by our values. Every one talks of values but when it comes to actually following them, it is one of a task. A person with strong integrity live those values. For example, you are manager and have the power for loan disbursement. One day one of your senior (people from senior management) ask you to sanction the loan of one of their known client.  You know that this person has earlier defaulted loans in other banks. Now that is where the values comes into picture. How to stand by your values even though there is lot of pressure. How not to do wrong even though the order comes from the top. Always remember,  It is the Bank that have hired you and not your Boss! Therefore, all the employees of the bank irrespective of position, are your colleagues! You are not subordinate to anybody! It is the Bank's money (actually public money)  that you are investing to get appropriate return and not to oblige anybody. Be smart to tackle pressure but stick to your principles. Know what is correct and device ways to do correct things correctly. You can avoid and tackle such pressure only if you are honest, transparent in your work and have a thorough knowledge of your domain! If you lack these, you are vulnerable to be manipulated.

Compliance means that you do your work as instructed and without delaying it. It also means being compliant to the laws, rules, regulations and circulars. One who has got strong compliance is highly appreciated, maintains good relation with the seniors and have got high chances of rising the success ladder as compared to the one who is less compliant. 

2. Technical Skills - Technical Skills can be categorized into two sub parts:

• Commerce (Includes banking and accounting knowledge)
• IT

Since you are about to work in a bank, it is utmost necessary to have banking knowledge. It includes, various types of accounts, loans , instruments and terminologies related to banking environment. It also includes basic finance concepts and economics awareness as the banking sector directly or indirectly is influenced by changes in the government policies. It is also important to have accounting knowledge. It includes basic debit and credit rules, classification of different types of assets, revenue recognition and provisioning norms. 

Banks generally require working IT knowledge. If you are a B.Tech, it is an added advantage. But, if you are from commerce or arts background, you should at least know working knowledge of computer, tally and Finacle (It's a banking software). One should be well versed with Microsoft Office (Word, Excel and Power Point). It is not required to have O level or A level certifications for banking jobs. Keep updating yourself, learn new skills and improve yourself each day.

3. Soft Skills - This is the most neglected area. People often underestimate the power of soft skills. It is true that technical skills are important but soft skills are the most important as they add value to them. Imagine a company that has an excellent product ( technical stuff) but does not know how to market them (soft skills). Will there product be successful? No. Similarly in banking industry, soft skills play an important role to assist you in your work. Required soft skills are as follows:

• Positive attitude - It means one should be solution oriented. Life always throw new challenges each day. Do not get disheartened by them. Instead take them as an opportunity to explore your hidden potential. Adversity brings out the best in you. Always try to see the positive side of any situation and try to solve the problem.
• Politeness - It attracts positive behavior from Clients & colleagues. If you give respect, you will automatically be respected.
• Smiling Face - It shows your positive attitude. And what's the harm in smiling?
• Entertaining - It means you have ears to people's problems and is ready to solve them.
• Helping - If you help your clients, you are increasing Bank's business
• Facilitative - Work should not be delayed for formalities. If your client is running pillar to post to get his work done, you are loosing goodwill and perhaps future clients and business. 
• Service Oriented - Do not be egoist and proud. To provide service to others is your duty. Perform your duty religiously! 
• Communication Skills - Majority of the problems emanate from wrong or incomplete communications. Be clear in the instructions you get and also what you give to your subordinates. Communication is incomplete  and looses it's value if the work is not done as per your desired  instructions. So make sure you check the process to achieve the desired  end results. It is always advisable to have written communication instead of only verbal talks. 
• Time Management - Bank job is highly stressful. Long working hours, rude clients, work pressure, personal and professional life imbalance etc. are some of it outcomes. By managing your time properly you can reduce your stress to a very large extent. Prioritize your work. Plan your day one day before. Classify your work into Urgent, Important and neither urgent nor important. Perform your work according to now so classified priorities. You will realize that you are more productive by effective time management. When you complete all your schedule tasks, it gives a sense of satisfaction and stress levels automatically falls. So prioritize and enjoy!
  
  
  

I have tried to list some basic but very essential traits to give your banking career a flying start and also to keep you flying throughout. Hope it helps! If you have them, nurture them, if not, develop them.

Note: The inputs for the article has been gathered from retired officers of the bank.

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