1

A PROJECT ON

“ROLE OF OCTROI IN THE

DEVELOPMENT OF JALGAON
CITY”

GLOBAL BUSINESS SCHOOL,

JALGAON
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GROUP NO: 8

Group members:-
Name Roll no.

• Kunal G.Nerkar……………....38
• Sagar K. Kotecha…………....28
• Ganesh B.Patil…………….....48
• Saurabh Garg………………..18
• Rupesh Chaudhary…………..88
• Dipak Baviskar………………08
• Tushar Adhav………………..78
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INDEX
 ACKNOWLEDGEMENT

 CERTIFICATE

 INTRODUCTION

 SCOPE OF STUDY

 OBJECTIVE OF STUDY

 RESEARCH METHODOLOGY

 FACTORS

 OBSEREVATIONS

 RECOMMENDATION.

 CONCLUSION
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ACKNOWLEDGEMENT:-

It is proud Privilege to express our gratitude to

all those who helped us in the completion of this
project.

We express our gratitude and thankful to our

project guide Prof. Tushar Chothani & Prof.
Mangesh Sanap Sir for his encouragement and
motivation.

Further we would like to thank all the members

of the team without whose cooperation this task
would not had been completed.

GROUP NO. 8
AZIM PREMJI GROUP
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CERTIFICATE
This is to certify that the
Project Report

Effect of Octroi in Development of Jalgaon City

Work carried out by

Azim Premji Group (8)

Pursuing the degree of

“Master of Business Administration”
For the Session: 2007-2008

At
Global Business School, Jalgaon

This Project Report has been submitted by them

In partial fulfilment for the degree of
“Master of Business Administration”
I further certify that the project has been carried out under my
Guidance and direction and is found to comprehensive and
Complete. I hope the knowledge gained in this project would help
them
In their future career and wish them all the best.

Prof. Tushar Chothani

Prof.Priti Agrawal Prof.Mangesh Sanap
Director Project Guide
GBS, Jalgaon GBS, Jalgaon
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INTRODUCTION

WHAT IS OCTROI

 Octroi: - Octroi means municipal customs duty

 The tax collected from the municipal corporation
From the public expenditure.
 The tax is received on behalf of {raw material} goods
Enter into the boundary of city on that Municipal
Corporation collects the Octroi tax from the importer
 The tax is charged by different rates
 This Octroi tax is charged by every municipal
corporation in India {as per the government policy}

PROCEDURE FOR STAMPING OCTROI

 The Importer shall prepare and present the Import

Octroi Bill
 after the payment of Octroi
 with the documents of import to the Octroi Inspector
entrusted with the stamping work
 with the documents of import to the Octroi Inspector
entrusted with the stamping work
 with the documents of import to the Octroi Inspector
entrusted with the stamping work
 In the event of any other Packages not belonging to
the importer being stamped due to misdirection or
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incorrect Identification by the importer he shall be
required to pay additional stamping fee
 After the completion of stamping work the Octroi
Inspector shall endorse on both the copies of the
Octroi Import Bill the results of the stamping work
carried out by him and shall obtain the signature of the
importer
 with the documents of import to the Octroi Inspector
entrusted with the stamping work
 In the event of any other Packages not belonging to
the importer being stamped due to misdirection or
incorrect Identification by the importer he shall be
required to pay additional stamping fee
 After the completion of stamping work the Octroi
Inspector shall endorse on both the copies of the
Octroi Import Bill the results of the stamping work
carried out by him and shall obtain the signature of the
importer
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SCOPE OF STUDY
 Geographical location:
Jalgaon (25° 55' N, 75° 30' E; p. 68,412)
 Municipality:
Jalgaon municipality with an area of 6.8 sq.
miles was
Established in 1864.
 General Information of Octroi:
Rights are given to the municipal commissioner
This cooperator has rights the passed bills in general
meetings. There are 21 check posts in Jalgaon city. In
Jalgaon city the Octroi has been handover to the
privatization. Kohinoor infrastructure Pvt. Ltd. Get the
tender issued by Govt.

OBJECTIVE OF STUDY
 PRIMARY OBJECTIVE:
Effect of Octroi on the development of Jalgaon
city
 SECONDARY OBJECTIVE:
Positive or Negative effect of Octroi –
-On industry
-On dealers, sub dealers,
-On customers,
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-On govt.

RESEARCH METHODOLOGY

 RESEARCH DESIGN
 SAMPLING
 SAMPLING SIZE
 DATA SEGREGATION
 TOOLS FOR DATA COLLECTION
 ANALYSIS & INTERPRETATION

RESEARCH DESIGN
For proper direction technical &systematic guider should be there &
RESEARCH DESIGN provides above features. It specifies the objectives of
studying and technique to be adopted for achieving the objective.

A research design is a kind of base to build a concrete construction.

SAMPLING
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 CORPORATION
 INDUSTRY
 DEALERS, SUB-DEALERS
 WHOLESELERS
 CUSTOMER
 TRANSPOTERS

SAMPLING SIZE

TRANSPORTERS
CORPORATION
10%
25%
CUSTOMER
15%

WHOLSALER
10%

DEALERS INDUSTRY
15% 25%
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DATA SEGREGATION

 PRIMARY DATA

As study of effect of Octroi was to be made, harmony data was collected

from related field-survey of 100+ outlets. All of them were asked personally
and the tool used was schedule questionnaire prepared.
Also informal session with Octroi officers, transporters and
shopkeepers were held to collect the information about the regularity,
transparency, posting system.

 SECONDARY DATA

Secondary Data was also used for study. It was collected from
distributors to get information of outlets covered and corporation’s policies.
Secondary Data was collected from Publications, newspaper and from
website.

TOOLS FOR DATA COLLETION

 QUTIONNAIRE
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Tools used for data collection were Scheduled questionnaire. The
questionnaire was prepared with the help and guidance of Octroi officers of
corporation.

 OBSERVATIVE STUDY

The preferred observation was related to regularity, transparency, posting

system and other services of corporation. Whereas random samples were
interviewed in short observation.

ANALYSING & INTERPRETATION

The questionnaire preferred for potential study of Octroi regarding to

development of Jalgaon city were analyzed as per following manner.

YES NO

ARE YOU AWARE OF OCTROI IS CHARGED TO

ALL THE GOODS THAT ENTER THE MUNICIPAL
LIMITS OF JALGAON?
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Near about 10% people are unaware of Octroi

WHAT IS BASIC REASON FOR OCTROI AT

JALGAON?
60 55
50
1.Development of city.
40source of funds for advancement of Jalgaon.
2.Major
3. Tax Collection at source. 30
30

20 15
10

0
Develop. Funds Tax colle.
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More then 50% amount of octroi is charged for development of city

DO YOU THINK THE MAJOR SOURCE OF

INCOME FOR JALGAON MUNICIPAL COMES
FROM OCTROI?

NO
Yes
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More then 60% people say Yes

THE FUNDS COLLECTED FROM OCTROI ARE

USED
50 FOR WHAT REASONS?
45
1.Development process
40
2.Improve the infrastructure
3.Grant
35 subsidies
4.Aid
30 the business existing
25
20
15
10
5
0
1 2 3 4
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50% of collected octroi used for development process

IS IT REALLY UTILIZED FOR THE SAME IN

JALGAON?

YES
NO
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More then 65% says no

DO OCTROI HAVE A POSITIVE IMPACT ON

DEVELOPMENT OF JALGAON CITY?
70
60
50
40
30
20
10
0
YES NO
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30% data says Octroi has done a positive impact while 70% data show a
contradiction

IF OCTROI CANNOT BE REMOVED, SHOULD

THERE BE ONLY ONE RATE (CHARGE) FOR ALL
THE GOODS?

60
40
20
3-D Column 1
0
YES NO
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60% data says there should not be only one rate for all the goods

SHOULD OCTROI BE CHARGED ON THE

NECESSITIES OR LUXURIES?

80
70
60
50
40
30
20
10
0
Necessity Luxuries
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The analysis says octroi should also charged on necessity rather than
luxurious goods

HAS OCTROI STOPPED AND REVERED THE

PROGRESS AT JALGAON CITY?
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75

25
0 20 40 60 80 100 120

YES NO
According to survey 75% data says octroi stopped the progress of the city.

WHAT ALTERNATIVES CAN YOU SUGGEST IF

OCTROI IS DISCARDED?
1.VAT
2. Registration of land purchases/marriages.
3.Octroi has no other alternative.

FACTORS (Myths n Reality)

-There are certain examples due to which Octroi has been into discussions-

1.Jalgaon’s most prestigious industry ‘SUPREME INDUSTRY LTD.’has

been shifted to Paladhi due to Octroi. (Myth)
Reality (the government is expected to declare a SEZ for Jalgaon worth
Rs.350 crores for plastic park)

2. (Myth) Besides this now a day many vehicles has been

registered from other states/districts like MP,
Aurangabad.
(Reality) the automobile dealers of Jalgaon have been the star performers
on the national scale.
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3. (Myth) one of the biggest companies named as JAIN IRRIGATION is

situated outside the city (Sirsoli.)
(Reality) Jains were not operating in Jalgaon Municipal limit since last 10
years and the Octroi has been imposed from 2004-05.
4. (Myth) many small-scale industries has been closed because of Octroi.
(Reality) Many new small-scale units have come up.
5. (Myth) Giant MNC like Reliance group of industries does not start their
Malls in the Jalgaon city.
(Reality) It has been observed that Reliance Industries operates at places
where they enjoy conducive environment.
6. (Myth) New industries are reluctant to start operations in Jalgaon because
of Octroi.
(Reality) City lacks basic infrastructure and other amenities.

OBSEREVATIONS

1.There is a great deal of controversy regarding Octroi.

We observed that there are two groups in the market; those are corporation
& industrial sector.

2.Octroi Collection has been given to Private sector by the govt., which is
Suitable to the Govt.

3.Octroi had minimal impact on new emerging & small scale industries.

4.Octroi is the major revenue for the govt through which govt. can do the
social expenditure.

RECOMMENDATION
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1.From overall analysis it can be seen that Octroi has minimal effect on
the progress of industries in Jalgaon city. The govt. must provide an
alternative to Octroi as early as possible my implementing the Subodh
kumar committee recommendations.

CONCLUSION
1. According to the analysis, Octroi is essential because it gives the
direct cash fund to govt. by using which govt. make plans for development
of city.

2.Octroi should be reduced up to some extent.

3. Octroi should be merged with VAT, to avoid double taxation issues.

THANK YOU! …