Samiksha 2006 – An event organized by PGDIE students of NITIE saw Industry stalwarts from various streams getting head to head in panel discussion on “VAT and its implications on Indian Inc.”
Samiksha takes the atmosphere of learning beyond the binds curriculum and keeps students updated with latest trends in industry to prepare the budding managers for challenges of evolving business conditions. The attempt is to attune the institute to become more responsive to & focused on dynamic nature of industry requirements.
The program was held on 24th February 2006 and was inaugurated by Dean Academics Prof. D S Hegde who emphasized that the present system of taxation was complex and posed several hurdles to the development of the manufacturing sector in India due to the multiple taxation scenarios. He said that VAT would ensure a bigger cake of GDP for tomorrow’s India.
Mr. Arif Siddiqui, Business Head Logistics, AFL highlighted the implications of VAT on logistics distribution system. He expounded on the implications of VAT on the physical supply and distribution systems of an organization. He said that VAT will lead to far reaching changes in almost all organizations since remodeling supply chains, an area PGDIE, NITIE students are most interested in, will become indispensable. He went on say that goods and services can be classified into two categories, those demanding responsiveness or efficiency. Based on whether our products are belong to the “responsive/speed” or “efficiency/cost” category we need to design our supply chains. The focus will now shift from sub optimal CFAs to logistics and responsiveness and efficiencies of supply and distribution. He predicted reduction in distribution system layer and evaluation of new logistics models in the post-VAT scenario.
His statement “It is heart warming to see such a large student community interest in understanding the nuts and bolts of this not so simple facet of taxation.” testifies the impact NITIE made to the eminent personalities.
Mr. Sant Kumar Verma, Head Taxation, Bayer Cropscience Ltd. explained in lucid terms VAT as a concept and what its practical implications would be on industrial transactions with examples that gave some food for thought to the students aiming to be tomorrow’s logisticians and procurement managers. He also explained the different slabs of VAT structure and their implications on manufacturing industries.
“It was really great to be a part of such a successful event”, he said to describe the event.
Mr. S.M. Kulkarni, Corporate Head, Sales Tax, Mahindra & Mahindra, enthralled the audience with his lucent lecture on the basics elements of VAT. He explained about the various scenarios that today’s supply chain students would face as tomorrow’s supply chain and purchase mangers. Through simple examples he helped the student community of NITIE and other B Schools as well as other industrial delegates, comprehend the various techniques like outsourcing, vendor management etc. can help to reduce costs.
Ms. Renu Narvekar, Head Finance, P&G; Ltd. explemplified the VAT issues with reference to FMCG sector. She enlightened the audience on how VAT would be eliminating multiple taxation, increase government revenues bringing dealers and retailers also into the tax bracket. It will ensure greater transparency since it is easier to comprehend and lay a road map towards a unified national VAT regime. She said, however, that VAT puts FMCG companies in a spot of bother regarding decisions on who should bear the brunt of the additional tax which the distributors and retailers are forced to pay. She further went on to delineate the affects of VAT on sourcing, logistics, Systems and record keeping, ERP, customers and packaging regulations with reference to the FMCG Industry.
Mr. Vivek Bhimankar, Deputy Commissioner, Sales Tax, enlightened on various aspects of Post VAT scenario. He gave a whole new dimension to the event by elaborating on the need for VAT in the Indian economy. He said that with the signing of the WTO treaty and liberalization, the Indian industry needed to be forced to become more competitive. As states engaged in a rat race of tax concessions to attract industrial investment the state treasuries became bankrupt and the need for a uniform tax regime was felt. Thus VAT was born.
He highlighted “Earlier, tax system rewarded dishonesty. Now there is an incentive for being honest. VAT has not only refilled the treasuries but has also ensured better social life by decreasing the corruption levels.”
Ms. Sangita Shah, Editor, Stock Market and Commodities, Financial Express described Samiksha 2006 a grand success. She said that it was really a great experience moderating the event and appreciated the level of questions asked by the students.
The words “I have never seen such an interactive audience, not even in big programmes organized by industries in huge conference halls” articulates the story of success of the event.
Nearly 40 Industrial delegates from different Industries and students from various Business Schools attended the discussion and gained valuable insights on VAT.
Mr. Adreesh Mukherji, a student of K.J.Somaiya, Mumbai said “Just prior to budget scenario an educating session on VAT helped to understand tips and tweaks of VAT and also clarifies the misconceptions about the Tax structure.”
Mr. Manish Lal , an Industrial delegate from TotalFinaElf Ltd. expressed his comments as “The session gave more insights of implications of VAT on various sectors like FMCG, Automobiles, Logistics etc. and helped to understand the complications in a structured way”.
The session ended with Vote of Thanks Prof. Ashok K. Pundir to the distinguished speakers, Faculty, Media partners and the students.
But the students of PGDIE now have a challenge to take Samiksha to new heights in future and to evolve Knowledge Ocean for learning.”