Chapter10 Internal Trade - 1.3

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Class 11

Business Studies
Chapter - 10

Internal Trade

Ajith Kanthi Wayanad


www.hssplustwo.blogspot.com
Tra d e
Tra d e
Trade means buying and selling of goods, which
involves the exchange of commodities for money or
money’s worth

On the basis of scale of operation, internal trade can be


divided into
Wholesale trade and Retail trade
Wholesale
Trade
W h o l e s a l e Trade
Buying and selling in large quantities
A wholesaler buys goods directly from the producers and sells
them to the retailers

One who deals in wholesale trade is known as


wholesaler or wholesale dealer
S e r v i c e s of
W h o l e s a l e r s to
M a n u f a c t u r e r s or
Producers
S e r v i c e of W h o l e s a l e r s t o P r o d u c e r s
1 Facilitating large scale production

Bulk orders from wholesalers enable to produce in


large quantity
S e r v i c e of W h o l e s a l e r s t o P r o d u c e r s
2 Bearing risk
They purchase the entire goods immediately
on production

They take the risk of change in demand, spoilage,


damage, theft etc. during transportation and storage
S e r v i c e of W h o l e s a l e r s t o P r o d u c e r s
3 Financial assistance

Wholesalers purchase on cash basis and sometimes they may


give advance payment for bulk purchases
S e r v i c e of W h o l e s a l e r s t o P r o d u c e r s
4 Expert advice

Wholesalers are in constant touch with the retailers, they can


collect information about the tastes and fashion of consumers
and passes it on to producers
S e r v i c e of W h o l e s a l e r s t o P r o d u c e r s
5 Helps in marketing

Wholesalers take care of distribution of goods, market


research, transportation, warehousing etc.
S e r v i c e of W h o l e s a l e r s t o P r o d u c e r s
6 Facilitates continuity of production

Wholesalers purchase goods on a real time basis as and when


they produce goods
It helps the manufacturers to carry out continuous
production
S e r v i c e of W h o l e s a l e r s t o P r o d u c e r s
7 Storage

The burden of storing goods passes to the


wholesalers
S e r v i c e of W h o l e s a l e r s t o P r o d u c e r s
1) Facilitating large scale production
2) Bearing risk
3) Financial assistance
4) Expert advice
5) Helps in marketing
6) Facilitates continuity of production
7) Storage
S e r v i c e s of
W h o l e s a l e r s to
Re ta il e rs

Ajith Kanthi Wayanad


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S e r v i c e of W h o l e s a l e r s t o Retai l ers
1 Availability of goods

Retailers get goods as and when they required as there is a large


quantity stored by wholesalers
S e r v i c e of W h o l e s a l e r s t o Retai l ers
2 Marketing support

Wholesaler takes all the burden of advertisement and sales


promotion activities, and the retailer enjoys the
benefit
S e r v i c e of W h o l e s a l e r s t o Retai l ers
3 Providing credit facilities

It enables the retailers to conduct their business without


much investment in working capital
S e r v i c e of W h o l e s a l e r s t o Retai l ers
4 Specialized knowledge
Wholesalers can give expert advice on their products
as they are dealing only a limited line of
goods

They also inform the retailers about new products, their


uses, quality, prices etc.
S e r v i c e of W h o l e s a l e r s t o Retai l ers
5 Risk sharing

The risk of retailers gets reduced as most of the burden of


marketing such as price fluctuation, loss of goods in
transit, storage etc. is born by the wholesalers.
S e r v i c e of W h o l e s a l e r s t o Retai l ers
1) Availability of goods
2) Marketing support
3) Providing credit facilities
4) Specialized knowledge
5) Risk sharing
Retail

Trad
e
Retail Trade
Buying and selling of goods in small
quantities

A retail trader buys goods from the wholesalers and


sells them to the customers
Retail Trade
Retail trade includes all activities directly
related to sale of goods or services to
ultimate consumers for consumption
S e r v i c e s of
R e ta il e rs to
M a n u f a c t u r e r s or
Wholesalers
Ajith Kanthi Wayanad
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Ser v i c e of Retail ers to P r o d u c e r s
1 Helps in distribution

Retailers help in distribution of goods to the ultimate


consumers who are scattered over the world
Ser v i c e of Retail ers t o P r o d u c e r s
2 Personal selling

Most of the consumer goods requires personal selling,


wholesalers and producers are free from this task as it is
undertaken by the retailers
Ser v i c e of Retail ers to P r o d u c e r s
3 Large scale operations

Manufacturers and wholesalers are free from the trouble of


making individual sales to consumers in small
quantities
This enables them to operate on large scale
Ser v i c e of Retail ers to P r o d u c e r s
4 Collecting market information

Since the retailers are in constant touch with the


consumers, they can collect reliable market information,
which can be passed to the wholesalers and
manufacturers
Ser v i c e of Retail ers to P r o d u c e r s
5 Help in sales promotion
Retailers also undertake advertisement and other
sales promotion activities to increase their sales

It helps the wholesalers and manufacturers in promoting the


sales of their products
S e r v i c e s of Retail ers to P r o d u c e r s
1) Helps in distribution
2) Personal selling
3) Large scale operations
4) Collecting market information
5) Help in sales promotion
S e r v i c e s of
Re ta il e rs
to
Consumers
Ser v i c e of Retail ers to C o n s u m e r s
1 Regular availability of products
Most often the retailers holds sufficient stock of
goods from various producers and wholesalers

It ensures ready and regular supply of goods


Ser v i c e of Retail ers to C o n s u m e r s
2 New products information

By arranging proper display and through personal selling


efforts, the retailers provide relevant information about the
new products and their features to the consumers
Ser v i c e of Retail ers to C o n s u m e r s
3 Convenience in buying

Retailer sells goods in small quantities and they have set up


their stores in residential areas which are very near to
the consumers
Ser v i c e of Retail ers to C o n s u m e r s
4 Wide selection

The retailer has a large variety of goods from


different manufactures
Ser v i c e of Retail ers to C o n s u m e r s
5 Provide credit facilities

The retailers often provide credit facilities to regular


and trusted customers
S e r v i c e s of Retail ers to C o n s u m e r s
1) Regular availability of products
2) New products information
3) Convenience in buying
4) Wide selection
5) Provide credit facilities
Types of Retail Trade

Itinerant Traders Fixed Shop


Itinerant Traders

Ajith Kanthi Wayanad


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Itinerant Traders

Traders are having no fixed place of business

Eg: Hawkers, street traders etc.


Characteristics of
Itinerant Traders
Characteristics of Itinerant Traders
a Small scale operation

Due to limited resource


Characteristics of Itinerant Traders
b Deal in consumer products

Usually they deal in consumer goods of daily use Eg:


Fruits, vegetables, fish, stationery etc.
Characteristics of Itinerant Traders
c Door step service

They provide goods at the door step of the


consumers
Characteristics of Itinerant Traders
d Limited stock

As they have no fixed place to operate, they do their


business with limited stock only
Characteristics of Itinerant Traders
a) Small scale operation
b) Deal in consumer products
c) Door step service
d) Limited stock
Kinds of Itinerant Traders
Kinds of Itinerant Traders
1.Hawkers and Peddlers
2.Market Traders

3.Street Traders / Pavement Traders


4.Cheap Jacks
H a w k e r s a n d Pe d d l e r s
Hawkers are the traders
who carry their products
on
carts or bicycles

Peddlers carry their products


on their back or head or in
baskets or shoulder bags
Features of Hawkers
and Peddlers
Features of Hawkers and Peddlers

Generally dealing non-standardized
and
low value goods.

Operatesexhibition
areas, mainly ongrounds, public
streets of places
residential
etc.

Suppl the goods at the
door
y step of the consumers.
M a r k e t Traders
These traders sell their articles on fixed
days in different market places
Features of
Market Traders
Features of Market Traders
a)They deal in one particular line of goods. Eg:
toys, garments, crockery etc.
b) Sell products on fixed days in the market.

c)Dealing in Low priced goods.

d) They move from one market to another.


S t r e e t Traders / Pa v e m e n t Traders
These traders generally arrange their articles
at busy street corners, near railway stations
etc.
Features of
Street Traders
Features of Street Traders

a) They sell consumer items of daily use.


b) Generally operates near public places.
c) Donot change their places of
business
frequently.
C h e a p Jacks
They usually, hire small shops for a short period of
time
Depending upon the scope of sale they keep shifting
from one locality to another
Features of
Cheap Jacks
Features of Cheap Jacks
a) They deal in consumer items.

b)Also provide services like repairing watches, shoes,


buckets etc.

c)Move from one area to another depending on sales


potential.

d)They also sells goods in temporary sheds during


festivals.
Itinerant Traders
At a glance

Hawkers and Peddlers


Market Traders
Street Traders / Pavement Traders
Cheap Jacks
Fixed Shop Retailers

Ajith Kanthi Wayanad


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Fixed S h o p Retailers

These retailers are those who carry on business by


maintaining a fixed place of business to sell their
goods

They do not move from one place to another


Fixed S h o p Retailers
Depending upon the size of operations,
they can be of two types

Small scale Retailers Large scale retailers


Fe a t u r e s of
Fixed S h o p
Re ta il e rs
Fixed S h o p Retail ers - Fe a t u r es
a Large resources
They have a lot of goods compared to itinerant
traders
Fixed S h o p Retail ers - Fe a t u r es
b Deal in different products

They deal consumer goods, both


durables and non-durables
Fixed S h o p Retail ers - Fe a t u r es
c Credibility
They have greater credibility in the minds of
consumers as they provide services like home
delivery, guarantees, repairs, credit facility etc.
Types of
Fixed S h o p
Re ta il e rs
Large
Small

Scale Scale
Small
Scale
General Retailers Second Hand
Stores Goods Shop

Speciality Street Stall


Shops Holders
S m a l l S c a l e Retailers

They are running their business on a small


scale and deal in a limited line of goods
S m a l l S c a l e Ret a i lers
a General Stores
They are selling all general items of goods such as
groceries, stationery, oils, etc.
Customers can buy most of their requirements at one place

They may also provide free home delivery, credit facilities etc.
to regular customers
S m a l l S c a l e Ret a i lers
Features of General Stores

They stock variety of goods for to day
day requirement.

Open for long hours based on the convenience of
consumers.
S m a l l S c a l e Ret a i lers
Features of General Stores

Provide credit facilities to regular customers.

Located near residential area.

Provide service like home delivery etc.
S m a l l S c a l e Ret a i lers
b Speciality Shops
They are specialized in a single product of a
certain line
Also known as Single Line Stores

E.g. kids wear shop, computer shop, bookshop etc.


S m a l l S c a l e Ret a i lers
Features of Speciality Shops

Specialize in one product only.

Located in central places.

Keep all brands of a particular product.
S m a l l S c a l e Ret a i lers
c Street Stall Holders
They are generally located at street
crossings or in the main street

They usually display their goods on a table, stand or


by fixing a shelf on the wall
S m a l l S c a l e Ret a i lers
Features of Street Stall Holders

Deal in cheaper goods. Eg: toys, soft drinks,
hosiery items etc.

They mainly attract floating customers.

The stall is housed in very small area.

Found in high customer traffic area.
S m a l l S c a l e Ret a i lers
d Second hand goods shop
They are dealing in second hand goods such as
books, furniture, clothes, used cars and other
household items
S m a l l S c a l e Ret a i lers
Features of Second Hand Goods Shop

Usually found in busy streets.

Helpful for low income group.

They often sell antique items and rare object
of
historical value.
Departmental Vendin
Stores Large M
g achine

Scale
Retailers
Multiple Super
Shops Bazar

Consumer
Mail Order
Co-op
Houses
Stores
L a r g e S c a l e Ret a i lers

Large scale retailing may be defined as retail trade


involving operations on a large scale and sale of
goods in small quantities
Departmental
Stores

Ajith Kanthi Wayanad


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L a r g e S c a l e Ret a i lers
a Departmental Stores
It is a large scale retail shop selling a wide variety of goods in
different departments under one roof and one management

Textile Department Consumer Goods Department

Each department deals in separate line of goods like


stationery, books, furniture, clothing, footwear etc.
L a r g e S c a l e Retailers
Features of Departmental Stores

Additional facilities like restaurant, telephone
booth, rest room, play area etc.

Usually located in central place of a big city.

Large scale retail organization, generally formed as
joint stock companies.


Play Area for
Children
L a r g e S c a l e Retailers
Features of Departmental Stores

Elimination of middlemen – They are
making their purchases directly from the producers.

Centralized purchases and decentralized selling.
L a r g e S c a l e Retailers
Advantages of Departmental Stores

Central location attracts more and more customers.

Shopping convenience to the customers as they get
different products under one roof.

Consumer services are
provided like free home
delivery, telephone facilities,
restaurants, rest rooms etc.
L a r g e S c a l e Retailers
Advantages of Departmental Stores

Economies of large scaleoperation in the
matterof transportation, advertising, purchase etc.

Automatic mutual
advertisement – One
department advertises
the other.
L a r g e S c a l e Retailers
Limitations of Departmental Stores

Lack of personal attention – as they have to handle a
very large number of customers daily.

High Operating Cost – due to heavy rent,
salaries of experts etc.
● High possibility of loss – Lack of personal
They incur high loss due to attention
change in taste and fashion
of consumers, as
they have a large
quantity of stock.
L a r g e S c a l e Retailers
Limitations of Departmental Stores
● Inconvenient Location – The central location of the store
make it inconvenient for the consumers who reside away
from it, also it suffers from traffic problems and parking
difficulties.

Huge investment –
It requires heavy investment
for establishment and
maintenance.
Multiple Shops
or
Chain Stores

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L a r g e S c a l e Ret a i lers
b Multiple Shops / Chain Stores
It is a system of branch shops operated under a
centralized management and dealing in similar line of
goods
Branches of the shop are
located throughout the
nation under the same
name and management
and they specialize in one
or two lines of goods
L a r g e S c a l e Retailers
Multiple Shops
Multiple shops are organized by the manufacturers to
eliminate middlemen

Eg. Bata Shoe company, Bombay Dyeing Show Rooms, Big


Bazar, Coffee Day, Raymonds, KFC etc.
L a r g e S c a l e Retailers
Multiple Shops
In a multiple shop there is uniformity in
advertisement, window display and interior display
of goods etc.
L a r g e S c a l e Retailers
Features of Multiple Shops

Convenient location for consumers.

Centralized buying and decentralized selling.

Centralized management and unified system
of control.
Convenient
location
L a r g e S c a l e Retailers
Features of Multiple Shops

Follows cash and carry principle.

Uniformity in shop’s design and lay-out.

Proper inspection from head office ensures the
smooth functioning.
L a r g e S c a l e Retailers
Advantages of Multiple Shops

Economies of large scale buying – Centralized
purchase attracts higher discount, low transportation
cost, common advertisement etc.

Elimination of middlemen – Direct bulk purchase from
producers.

No bad debts – They follow cash and carry system.
L a r g e S c a l e Retailers
Advantages of Multiple Shops

Diffusion of risk – Loss in one shop may be
compensated by the profits in other shops.

Low cost – Low cost of operation because
of economies of scale.

Flexibility – Unprofitablebranches can be
shifted to somewhere else.
L a r g e S c a l e Retailers
Limitations of Multiple Shops

Limited choice – they deal in one or two lines of goods.
● Lack of initiative and motivation – Due to centralized
control, there is only less chance for initiatives from the
part of the branch managers.
L a r g e S c a l e Retailers
Limitations of Multiple Shops

No personal contact due to large scale operations.

Risk due to change in taste and fashion
lead to great loss.
Differences B e t w e e n
Departmental
Stores &
Multiple S h o p s
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D e p a r t m e n t a l S t o r e s V s . Mu l ti p l e S h o p s

1 Location

Departmental Stores Multiple Shops

Central location Not necessary


D e p a r t m e n t a l S t o r e s V s . M u l ti p l e S h o p s

2 Variety of goods

Departmental Stores Multiple Shops

Limited variety of
Large variety of
goods from a
goods from different
specific producer
producers
only
D e p a r t m e n t a l S t o r e s V s . M u l ti p l e S h o p s

3 Services offered

Departmental Stores Multiple Shops

Additional facilities
No such additional
like restaurants, play
facilities are
zone, alteration of
provided
garments etc.
D e p a r t m e n t a l S t o r e s V s . M u l ti p l e S h o p s

4 Pricing policy

Departmental Stores Multiple Shops


No uniform pricing
policies, instead they Fixed price and uniform
are giving discounts to pricing policies are
clear the stocks in followed
special occasions
D e p a r t m e n t a l S t o r e s V s . M u l ti p l e S h o p s

5 Class of customers

Departmental Stores Multiple Shops


Suitable for middle and
High income group who
low income group who
care more for the
are more concern about
services rather than the
quality products at
price of products
reasonable price
D e p a r t m e n t a l S t o r e s V s . M u l ti p l e S h o p s

6 Credit facilities

Departmental Stores Multiple Shops

Sometimes to Strictly on cash


regular customers basis
Mail Order
Houses
L a r g e S c a l e Ret a i lers
c Mail Order Houses
It is a form of retailing where the business
transactions are done through post or by mail

There is not direct personal contact between the


buyer and the seller
L a r g e S c a l e Retailers
Mail Order Houses
Under this system, receipt of orders, delivery of
goods and payment etc. are done through the mail

E.g. VPP (Value Payable Post). This system is also


called shopping by post.
L a r g e S c a l e Retailers
Mail Order Houses – Mode of Operation
1. Giving advertisement in various media.

2.Preparing a mailing list of prospective customers.


(Data may be collected from telephone directories,
social media etc.)
3.Approaching the
prospective customers by
sending circulars, catalogues
etc. by post.
L a r g e S c a l e Retailers
Mail Order Houses – Mode of Operation
4.Receiving of orders from
customers.
5.Execution of orders by sending the
goods through post office.
6.Receiving payment – It may be in different forms
such as advance payment at the time of placing orders,
VPP or payment through bank.
L a r g e S c a l e Retailers
Suitability of Goods for Mail Order Houses
1.Graded and standardized goods.
2.Easily transported at low cost. Eg: light in weight.

3. Goods having ready demand in the market.


L a r g e S c a l e Retailers
Suitability of Goods for Mail Order Houses
4.They should be available in large
throughout the year.
quantity
5.Goods which are having least competition in the
market.

6.Goods which are not available in the


local market.
L a r g e S c a l e Retailers
Advantages of Mail Order Houses
1.Limited capital – It does not huge
require buildings, furniture etc.
2. Elimination of middlemen – Hence the cost of
operation is minimized
3. No bad debt – No credit facilities are allowed to
customers.
L a r g e S c a l e Retailers
Advantages of Mail Order Houses
4. Wide reach – The area of operation is
not limited.
5. Convenience in buying – i.e. delivery of goods
are made at the door steps.
L a r g e S c a l e Retailers
Limitations of Mail Order Houses
1. No personal contact – Customers do not have a
chance to examine the products.
2. High promotion cost – Heavy expenses
on advertising.
3.No after-sales service. ice
erv
s S
ale
4.No credit facilities. er S
Aft
No
L a r g e S c a l e Retailers
Limitations of Mail Order Houses
5.Delay in delivery.
6. Possibility of abuse – Dishonest traders may
cheat the customers.
5.High dependence on postal
services – Success of the
business depends on the efficiency
of postal department.
Consumers'

Cooperative
Stores

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L a r g e S c a l e Ret a i lers
d Consumers’ Co-operative Stores
It is a retail store formed and run by
consumers on co-operative principles

- op
Co ore
St
These stores are owned and managed by consumers so as to
make goods available at a reasonable price
L a r g e S c a l e Retailers
Consumers’ Co-operative Stores
Dealing in all types of consumer goods of daily use
such as grocery, stationery, dress materials etc.
L a r g e S c a l e Retailers
Consumers’ Co-operative Stores
Capital is raised by the issue of shares
to the members

management is vested in the hands of Board of Directors It


should be registered under the Co-operative Societies Act
L a r g e S c a l e Retailers
Advantages of
Consumers’ Co-operative
Stores
1. Easy to – Any ten may
formtogether and people form come
formalities. a society with limited
2. Limited liability – Liability of members is limited.
3. Democratic management – It is based
on democratic principles.
L a r g e S c a l e Retailers
Advantages of
Consumers’ Co-operative
Stores
4. Low price – by eliminating middlemen.
5. Cash sales – No chance for bad debt due
to cash and carry system.
6. Convenient location – Usually set up in
public places.
L a r g e S c a l e Retailers
Limitations of
Consumers’ Co-operative
Stores
1. Lack of initiative – The persons who manage and work on
honorary basis may not take much initiative for the success of
business.
2. Shortage of funds – Difficulty in raising capital.
L a r g e S c a l e Retailers
Limitations of
Consumers’ Co-operative
Stores
3. Lack of patronage – All members may not be in
touch with the organization regularly.
4. Lack of training and expertise in management.
Super Bazaar
(Super Market)

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L a r g e S c a l e Ret a i lers
e Super Bazaar (Super Market)
Large scale retail store selling a wide variety
of
consumer goods.

The most distinctive feature is the absence of salesmen and shop


assistants to help the customers in selecting the goods
Hence they are also called ‘Self Service Stores’
L a r g e S c a l e Retailers
Super Bazaar (Super Market)
Various products are arranged in well marked
divisions or departments
on open shelves

They are neatly


packed and the weight,
price, quality etc. are
marked on the packets
L a r g e S c a l e Retailers
Features of Super Bazaar (Super Market)
1.Wide variety – Buyers can purchase a wide variety of
products under one roof.
2.Self service – Super markets functions on the
principle of self service which results in lower operating
cost.
L a r g e S c a l e Retailers
Features of Super Bazaar (Super Market)
3.Low price – Because of bulk purchase and lower
operating cost, they can sell their products at low price
than other retail shops.
4.Cash basis – This feature helps them to eliminate bad
debts.
5.Centrally located –
Generally located at central
place of a city.
L a r g e S c a l e Retailers
Advantages of Super Bazaar
1.One roof and low cost – This is convenient
as well as economical to the buyers.
2.Central location – So that it is easily accessible to
the people.
3.Wide selection – They offer wide variety of goods
from different producers.
L a r g e S c a l e Retailers
Advantages of Super Bazaar
4. No bad debt – They follow cash and carry system.
5.Economies of large scale – It enjoys the benefits
of large scale operations.
L a r g e S c a l e Retailers
Limitations of Super Bazaar

1.No credit – It restricts the purchasing power of


consumers.
2.No personal attention – Due to the absence of
salesmen, the items which need personal attention may
not be sold out .
L a r g e S c a l e Retailers
Limitations of Super Bazaar
3.Mishandling of goods – Consumers may handle
the goods kept in the shelves carelessly.
4.High overhead expense – High rent due to prime
location, heavy administrative cost etc.
5.Huge capital requirement –
Establishment and running cost is
relatively high.
Vending
Machine

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L a r g e S c a l e Ret a i lers
f Vending Machine
These are coin operated machines found very
suitable in selling products like hot beverages,
platform tickets, soft drinks, newspaper etc.

ATM (Automated Teller Machine)


is also a vending machine in
banking business
L a r g e S c a l e Retailers
Features of Vending Machine
1.They are suitable for selling pre-packed items
of low priced products, with uniform size and weight.
2.Initial cost of the machine, maintenance charges etc.
are high.
L a r g e S c a l e Retailers
Features of Vending Machine
3. Consumers cannot see product before
the
buying.
4.No return of goods is possible.
G o o d s and Service
Tax
G o o d s a n d S e r v i c e Tax

1. Introduced by Government of India on 1st July 2017

2. One Nation One Tax

3.It is a destination based single tax on the supply of goods and


services from the manufacturer to the consumer
G o o d s a n d S e r v i c e Tax

4.Replaced multiple taxes levied by and state


central governments

5.Reduced tax burden by eliminating tax on tax


G o o d s a n d S e r v i c e Tax
6.GST consists of CGST and SGST, which are applicable in case
of intra-state supply of goods and services and IGST in case of
inter-state supply of goods and services

7.Tax liabilit arises


when y taxable
the the limit
person crosses
of 20 lakhs turn
over per year.
Fe a t u r e s of
G o o d s a n d S e r v i c e Tax
Fe a t u r es of G o o d s a n d Ser v i c e Tax
a)GST is applicable to the whole country
including Jammu and Kashmir.

b) It is a destination based consumption tax.

c)Import of goods are treated as inter-state supplies and


hence IGST is applicable for for such goods.
Fe a t u r es of G o o d s a n d Ser v i c e Tax

d)CGST, SGST and IGST are levied at rates mutually agreed


by the Centre and the State based on the recommendations of
GST Council.

e) There are four tax slabs: 5%, 12%, 18% and 28%
Fe a t u r es of G o o d s a n d Ser v i c e Tax
f) Export and supplies to SEZ are zero-rated.

g)Tax payer can remit the tax amount through different


payment gateways such as Net Banking, Debit/Credit Card,
NEFT (National Electronic Fund Transfer) and RTGS (Real
Time Gross Settlement.
R o l e of
Commerce and
Industry
Association
in P r o m o t i o n of
Internal Trade
P r o m o t i o n of Internal Trade
The Chambers of Commerce and Industry was formed as
an association of business and industrial houses to promote
and protect their common interest and goals

They play an important role in strengthening internal trade and


overall economic activity
P r o m o t i o n of Internal Trade
Examples:
1. CII (Confederation of Indian Industry)
2.FICCI (Federation of Indian Chambers of Commerce and
Industry)
3.ASSOCHAM (Associated Chamber of Commerce
and Industry)
P r o m o t i o n of Internal Trade
Role of Commerce and Industry Association
1. Helps in many activities relating interstate movement of
goods.
2. To ensure that octroi and other local levies are charged
reasonably.
3. Helps in harmonization of GST and VAT (Value
Added Tax).
4. Helps in marketing of agro products and related issues.
P r o m o t i o n of Internal Trade
Role of Commerce and Industry Association
5. Interacting with the government to take action against those
who violates rules relating to weights and measures and
prevention of duplication of brands.
6. Promoting sound infrastructure.
7. Interact with the government on issues of labour laws.
Prepared by: Ajith Kanthi @ Ajith P
P
SKMJ HSS Kalpetta Wayanad Kerala
Ph: 9446162771, 7907712665
www. hssplustwo.blogspot.com

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