Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: TDS :: VAT RATES :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: form 3cd :: articles on VAT and GST in India :: cpt
 
 
Service Tax »
 Goods and Services Tax (Compensation to States) Amendment Act, 2017.
 Services sector need to brought under Section 72A of the Income-Tax Act
 Simplifying GST: Creating a Grand Simple Tax
 The way ahead for goods and services tax
 Goods & Service Tax (GST): Recent Clarifications
 Tax payers can see status of returns filed on GSTN portal
 Export And Import Of Goods Under GST
 The Finance Resolution And Deposit Insurance Bill, 2017
 Payment made in revenue sharing deal exempt from service tax
 India seen posting stronger growth as businesses adjust to new tax
 GST High Powered Committee On Return Filing - Representation by GST Research Foundation

Export risk management guide for SMEs on anvil
June, 02nd 2008

By TIOL News Service

THE Federation of Indian Micro and Small & Medium Enterprises (FISME) has proposed a study on risks faced by SMEs especially in securing payments from overseas customers.

The study would later be published as a guide to help SMEs export directly their products and services by effectively managing export risks.

FISME is commissioning the study under the SME component of a project titled Strategies and Preparedness for Trade and Globalisation in India. The project is a joint initiative of Ministry of Commerce & Industry, United Nations Conference on Trade and Development (UNCTAD) and UK Department of International Development.

The guide is intended to identify the enormity of risks especially in securing payments for products and services delivered to overseas customers. Many SMEs shy away from exporting directly their products and services in view of difficulties in getting payments from customers. They thus prefer to export through trading houses and other entities.

The latest census on small scale industries (SSIs) shows that only 0.5% of SSIs are actually engaged in exports. SSIs, however, account for more than 7% of gross domestic product and 40% of industrial production.

Similarly, SMEs direct contribution to the countrys total exports is 35%. They also contribute significantly to indirect exports channeled through trading houses, etc.

The proposed study titled Guide for SMEs: Managing Risks and Securing Payments in Exports would be prepared by a consultancy firm to be selected through competitive bidding.

According to study brief, breaking into new markets and supplying to established buyers is extremely difficult. The break to SMEs is generally given by second rung buyers many a times whose credit reports are either not available or not very encouraging. In either case, the export insurance covers for such buyers are not available.

Most overseas buyers do not open letter of credit in favour of a new small supplier. They offer to make payments under mechanisms such as delivery against acceptance (DA), delivery against payment (DP), telegraphic transfer (TT) after receipt of goods, cash against documents through bank, etc.

The brief notes that all such payment terms contain higher risk and unduly favour the buyer. The insurance policies either do not accept these conditions or charge hefty premium. Most SMEs find the insurance policies as too cumbersome and prohibitively expensive.

SMEs find cost of recovering bad debt through standard legal means as too expensive to be employed. Most of them quietly bear the brunt of bad debt and many never return to export again.

The brief says that one bad debt could lead to closure of small firm due to its inability to absorb payment default.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions