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Interesting Way to do business

Technology has changed the way the business is done. The change in technology, the laws and accounting have to adapt to it.

Law Changes: Applicability of service tax on international in-bound roamers under telephone service – reg. in India http://203.197.214.122:8080/cbec/sertax_cir/stcirc90.doc

As you read the document, you will find how an international roaming should be considered a service by an Indian service provider and it should be charged for service tax. Fair enough.. Govt. should get it share of tax when the technology changes the way the business is done.

Music Downloads

Leona Lewis, this year's X factor finalist in UK. The first single was released... Yes single... only one song was released the day she won X factor. Within a hour of result was announced 50,000 downloads of the song was made. Click here and see how it works. Unbelievable !!! Within a matter of hour, the sales was £ 1.50 x 50000 downloads £ 75,000. And by Christmas the downloaded exceeded half a million. I can hear cash counting !!! The business without boundaries....

Napster encourage piracy and success of ipod showed how to make the cash bells ring by itunes.

LoveFilm

I never knew the exact meaning of word "Developed Country" unless and I happen to see how things are managed in developed world. You have rules in place and infrastructure to cater them. LoveFilm is an DVD online rentals in UK and it boasts of over 60,000 titles available for selection.

How online DVD rental works

1. You choose 2. We deliver


3. You enjoy4. We swap



Outstanding Business Model... isn't it. As a consumer you get the best choice and a win-win situation for both the company and consumers.

The success of Amazon and Ebay must have changed the way the business is done .... and also accounting. Ebay earnings are by classifieds posted on its website by its users ...

Did you buy anything from Ebay ?

IT outsourcing

Now a days most of the IT companies have their offshore centre in India, Philipines etc. The service delivery is made in US or UK and the same is created by developers in offshore. How does offshore do the billing ? Is it between the parent company and subsidiary in India ? What happens if there is a SLA breach ? The parent company bills the customer in dollars and pays to the offshore counterpart a fraction of money which is too big a sum in India.

Change is imminent. Every company has to find a business model that is innovative, mass reach and at the same time cost effective. The companies that use technology to their advantage will be the winners in long run.

Regards,

Santosh Puthran
AICWA
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