Issues in Designing a System of Income Tax
Among the various indices of ability-to-pay taxes, income is regarded, by far, as the most appropriate. This is borne out by the popularity of income taxes the world over. Income tax is levied on the annual income of various taxable entities, mainly individuals and companies. For operating an income tax system successfully, fiscal authorities, particularly in developing countries, are required to resolve various issues to make it compatible with the socio-economic objectives of government policy. This paper examines general policy issues relevant for designing and reshaping a suitable income tax system.
This paper analyses the management of working capital components of select automobile companies in India. For this purpose two leading manufacturers of both passenger and commercial vehicles were selected such as, Tata motors limited and Mahindra and Mahindra limited. This study used secondary data for the study period of nine years from 2003-04 to 2011-12. This study used simple percentage and ratio for analyzing the data. It analysed inventory, receivables and payables and cash management separately. The study found efficient receivables and payables management by both the companies. The study found negative cash conversion cycle during all the years of the study period of both the companies, it was possible because very short debtors' collection period and inventory conversion period and long creditors' payment period. The study concluded that both the companies efficiently managed their working capital components.