Corporate world means the Company engages in the business activities having registered place in India or having place of business in India. Corporate world have a great advantage to Government of the Country with which it is related. In simple word Companies can help government in number of segment. Example of some of the following are pointed below:
Revenue to the Government:
After establishing the business a company can start transaction and in each transaction there is question of tax such as: VAT, CST, Excise, Custom etc. which is required to be deposited as per the rate applicable to that particular concern. All taxes form the revenue of the government and create the economic strength of the government which can be used by the government in development project. Beside the above annual income tax return is also required to be given and the rate applicable to the company is straight without giving any slave wise exemption, so the amount of tax is greater than the other form of business.
Employment to unemployed:
In today’s world the unemployment problem is a great challenge for the government of India. According to the rate of passing every year which is very much greater than the number of post available in government sector, in this matter corporate world doing a help great help to the government by providing job opportunities to large number of unemployed people to the society. Government can also collect Professional Tax from all the person employed by the corporate world after fulfilled the condition required to be fulfilled under the income tax rule.
Standard of Living:
Corporate world also help government in increasing the standard of living of the people. With the help of the corporate world the unemployed become employed and only this can make a large deference in the standard of living of the people with and without the corporate world, beside this a company is provide deferent types of product which is very helpful for every one and which can reduce the human effort for doing something, in this way the standard of living of the people is increased.
Availability of Product:
A manufacturing concern established in an area, there should not be scarcity of that particular product in that area and people can get that at minimum cost. In case of absence of such concern people have to purchase that product from outside at higher cost and in this way the value of money is reduced and creates a big challenge for the government in the form of Inflation. Inflation actually mean the increase the price of the product and decrease the value of money and the opposite situation is also saved by the corporate world, that is Deflation its happened when the production of a particular product is excess of its demand and this can also be controlled by the corporate world. So the corporate world can help in maintaining the balance between Inflation and Deflation.
Corporate Social Responsibility:
Corporate world is a form of corporate self - regulation integrated into a business mode. CSR policy functions as a built -in, self-regulating mechanism whereby business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international rules. The goal of CSR is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, shareholder and all other members of the public sphere. Furthermore, CSR-focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality. CSR is the deliberate inclusion of public interest into corporate decision-making, that is the core business of the company or firm, and the honoring of a triple bottom line : people, planet, profit. According to the corporate social responsibility the corporate should not engage in any activity which affects the people seriously.
Development of the Locality:
With the establishment of the body corporate the local area is automatically developed by giving the employment opportunity to the local people also by developing the communication for their communication and construction of their organization.