Capital Formation:
Capital formation means a sustained increase in the stock of real capital in a country. In other words, capital formation involves production of more capital goods like, machines, tools, factories, transport equipments, electricity etc. which are used for further production of goods. Capital formation is also known as investment.
The need for capital formation or investment is realised not merely for replacement and renovation but for creating additional productive capacity. In order to accumulate capital goods, some current consumption has to be sacrificed and savings of current income are to be made. Savings are also to be channelised into productive investment. The greater the extent that people are willing to abstain from present consumption, the greater the extent of savings and investment that society will devote to new capital formation. If a society consumes all what it produces and saves nothing, the future productive capacity of the economy will fall when the present capital equipment wears out. In other words, if the whole of the current present capacity is used to produce consumer goods and no new capital goods are made, production of consumer goods in the future will greatly decline. It is prudent to cut down some of the present consumption and direct part of it to the making of capital goods such as, tools and instruments, machines and transport facilities, plant and equipment etc. Higher rate of capital formation will enhance production and productive capacity, increase the eflcacy of production euorts, accelerate economic growth and add to opportunities for employment.
The need for capital formation or investment is realised not merely for replacement and renovation but for creating additional productive capacity. In order to accumulate capital goods, some current consumption has to be sacrificed and savings of current income are to be made. Savings are also to be channelised into productive investment. The greater the extent that people are willing to abstain from present consumption, the greater the extent of savings and investment that society will devote to new capital formation. If a society consumes all what it produces and saves nothing, the future productive capacity of the economy will fall when the present capital equipment wears out. In other words, if the whole of the current present capacity is used to produce consumer goods and no new capital goods are made, production of consumer goods in the future will greatly decline. It is prudent to cut down some of the present consumption and direct part of it to the making of capital goods such as, tools and instruments, machines and transport facilities, plant and equipment etc. Higher rate of capital formation will enhance production and productive capacity, increase the eflcacy of production euorts, accelerate economic growth and add to opportunities for employment.
Goods and Service Tax Book (Updated upto 20th January 2018)
GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final.
Also useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.!!
This book is approved by Ministry of HRD Govt.of India as Students friendly book.
Click on link given to Purchase Book- https://goo.gl/ArNFJx
Author Name- CA Harshita Raichandani and CA Dhananjay Ojha
Unique features of This GST Book.
1.80+ GST chart included for quick revision of chapter.
2.Provisions presented in this book in simple manner.
3.Bullet and Heading given for Long term memorisation.
4.Updated upto 25th GST council recommendation {18th January, 2018}.
5.70+ Value added questions given with answer.
6.16 Chapters fully Coverage given.
7.Definitions of Technical term related with GST is given at one place.
8.Most useful for CA Intermediate/IPCC, CS executive , CWA Intermediate and CA final. ALSO useful for B.Com / M.Com / MBA/ BBA/UPSC/ SSC and Various Govt Exams.
Click on below Link to purchase Student friendly GST Book.
http://www.comgurukul.com/educational-books/gst-book/
GST (Goods and Services Tax) Book -A student friendly Book. - Bharat Gurukul
GST Student friendly Book most relevant/Useful for CA Intermediate/IPCC, CS executive , CWA Intermediate BU
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