Considering the tough economic scenario, we are seriously considering retrenching employees. We are also aware of the fact that it will deeply affect the morale of other employees. A few of our employees have expressed their willingness to accept salary cuts, rather than terminating staff from services. Kindly suggest a solution for this?
M K Modi
VINAYA — Pink slips should really be the last resort for any company to survive in a recession. The fact, that your employees have come forth to save the jobs of their colleagues, is indeed a gesture of solidarity.
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We are running a retail store in the heart of the city. However, whenever we recruit sales staff and impart the necessary training, they change over to other companies. What can we do retain our staff?
Chirag, Creative Computers
VINAYA — Chirag, have you tried undertaking an exit interview to understand why they leave? Have you ever tried doing an employee survey by an external agency to identify employee concerns?
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We have a huge back-end rebate amount pending from a particular vendor. Despite repeated reminders the vendor has not responded, which suggests they are in no mood to pay. What should we do and is there a legal recourse for the same?
Vikas Singhal, Sigma Computers, Lucknow
T G RAMESH — If there is proper documentation between the vendor and you which is duly acknowledged by the vendor, then you have a fair chance of getting the back-end rebates from the vendor. Read more >>
Recently, Piramyd Retail was acquired by Indiabulls. Piramyd Retail was our customer and owed us money for products supplied, which Indiabulls is now refusing to pay. Please let me know the legal options available to me to recover this money.
Anand Karapurkar, Infobahn Technical Solutions, Mumbai
T G RAMESH — Acquisition is transfer of ownership in the form of equity. Any transaction which has legally happened prior to the acquisition, are automatically binding post acquisition also. Read more >>
Vendors selling products directly to end-customer is a big challenge to small retailers. When the prices billed to the retailer and end-users are equal, it is impossible for us to survive. So how does a small retailer like us sustain business in such a situation?
Prateek Kumar, Era Infotech, Mumbai
A GURURAJ — This is a question most people are pondering on in all industries. I have some suggestions for you. First and foremost you need to decide whether you want to be a price player or a value-added reseller.
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We would like to import thin clients from China and the US. Which are the taxes and duties involved, and what are the registrations required? We have searched on the Internet but didn’t find what we wanted.
Yogesh Patil, Technotux Solutions
Prakash — If you haven’t been an importer earlier then you need to first apply to the DGFT for and get the IEC (Import Export Code). Read more >>
What is the entry tax process and claim structure in UP?
Shyam Krishna, Shree Infotech Solutions
PRAKASH — The entry tax in UP is 2 percent and VAT 4 percent. Read more >>
We are looking to set up a small subsidiary in the US. Are there any consultants who can help us do the same? The consultant must be familiar with both Indian and American laws and procedures.
Shailesh Patel, Star Online Technologies
PRAKASH - There are many cross-border consultants in India. These are firms specializing in the laws (including taxation laws) applicable while doing business in another country. Read more >>
Presently we bank solely with Kotak Mahindra. If anything happens to this bank—considering what has happened to financial institutions around the world—we will be in a soup. How should we lower our risk?
Pankaj Kumar Mishra, Core Computers
PRAKASH - The banking system in India is sound, and strictly governed by the RBI. I do not foresee any adversity in our banking sector. Read more >>
Please list the employee benefits on which Fringe Benefit Tax is levied. Also suggest how it is to be computed.
T G RAMESH
- Employees get many benefits from their employers. If a benefit is fully attributable to an employee, it is taxed in the hands of the employee. When the benefits are enjoyed collectively by the employees and cannot be attributed to individual employees, they are taxed in the hands of the employer; this tax is called Fringe Benefit Tax (FBT). Read more >>
Is there any legal protection against employee poaching by vendors and distributors
?
Vinaya
— The Indian constitution considers the right to earn one’s livelihood a fundamental right, hence there is no law in the country that can prevent a professional from joining and working for another company. The question of legal protection therefore does not exist. Read more >>
We have a portfolio of software products that address the statutory reporting for service tax, excise, e-TDS, VAT, EOU, SEZ, etc. We have more than 10,000 users of our products, and a set of 26 partners. But the market for such products is so huge that we have not even covered one percent of the total market. How we can price and market the product so as to expand our market reach?
Arun Dixit, Udyog Software India, Mumbai
GURURAJ
— Let me answer the pricing question first. Usually, pricing of a product is decided on the following factors—prevailing price of competing products, profits you want to earn, and your growth plans. There is no ideal pricing unless you find out how much buyers willing to pay for your kind of software. Take Tally as an example, study their pricing strategy, and arrive at the right price. Read more >>
Who is legally liable in case of warranty service issues? In a couple of instances, our customers, who had warranty problems with their IT products bought from us, have threatened to take us to consumer court. On our part we have done our best to resolve the issues, but there have been delays at the vendor’s end.
Yogesh Parab, Pratiksha Computers, New Delhi
T G RAMESH
— Technically speaking, any legal course can be binding only between two transacting parties—in this case, between the buyer and the seller. Read more >> |