MANAGEMENT NOTES

  What is Digital Tax? Equalisation Levy (Digital Taxation) was introduced in India (the first country in the world to do so) in the Year 2016 on online Advertisement, subsequent to the ‘Report of the Committee on Taxation of E-Commerce’ which proposed Equalisation Levy on Specified Transactions. However it was kept outside the domain of the Income Tax Act, which leads to certain issues e.g. a tax credit of Equalisation Levy in other countries, no liability of the beneficiary, Tax Neutrality, etc. thereafter the amendments of 2018, introducing the concept of Significant Economic Presence (SEP) and the lately (2020) introduced amendment to Finance Act 2018. Rapid  digitization is one constant that has changed the world we live in. From buying groceries, booking cabs, and watching movies to connecting with people the world over through social media/ messaging applications, almost everything is possible online. As more and more people participate in the digital economy, ther...

  What is RACI Matrix? The RACI Matrix has a fixed design, with the names of functional roles on the horizontal axis and the various tasks, activities, the achievements to be delivered and responsibilities on the vertical axis. We must distinguish between a functional role and individual people. A functional role is a description of a wide range of tasks. Such a role can be carried out by multiple people. Conversely, an individual person may fulfil various different roles. For instance, ten employees can fulfil the role of the project manager within an organisation, and a single individual can fulfil the role of project manager and business analyst. RACI is an acronym of four important characteristics involved in a project. RACI Stands For: Responsible (R) This refers to the individual who will perform a task. Each task has to have at least one person who completes it. If an R is missing in any of the matrix rows that task has not been assigned to anyone creating a gap that nee...

  VRIO Analysis At the start of this century, American management professor  Jay B. Barney  developed the so-called VRIO Framework, VRIO Framework or VRIO Analysis. The VRIO Analysis is perfectly suited for the evaluation of the use of company resources. Following this technical analysis, a company will be able to better position itself relative to its competitors. After all, the VRIO Analysis also provides insight into the advantages of an organization vis-à-vis its competitors. VRIO is an acronym that stands for:  V = Value ,  R = Rareness ,  I   = Imitability ,  O = Organisation . 1. Value: This refers to the value of the resource used; how expensive is it, is it easily available, should it be purchased, rented, or leased? Should the resource be too expensive, it may be better to outsource it. It is, after all, about utilized opportunities and the value that a resource will ultimately generate for the company. Take the rental of a ...