Revenue Sharing Model Upsc

Revenue sharing is the distribution of the total amount of income generated by the sale of goods or services between the stakeholders or contributors.

Revenue sharing model upsc. From harrod domar model in economics. I will explain it to you with a simple example assuming one is investor partner and other is managing partner. Revenue sharing model is simple easy to administer no cost recovery no micro management by the government operational freedom to the operator pricing and marketing freedom which is a major incentive for investment. Revenue sharing refers to firms practice of sharing revenues with their stakeholders such as complementors or even rivals.

Saving could be financial saving money put in banks government securities shares bonds pension funds etc but other than cash held. Assume you and your friend are working on a partnership you purchase a item for 60 and sell it to 100. Agr is a fee sharing mechanism between the government and the telcos who shifted to the revenue sharing fee model in 1999 from the fixed license fee model. The nelp was profit sharing model where profits are shared between government and the contractor after recovery of cost.

One party is able to obtain a share of revenue from another that benefits. And if the price decreases miner shares less. Agreement and the revenue sharing and tariff structure framework. Latest top 50 upsc month current affairs are published in question and answer format which are.

It should not be confused with profit shares. The agreement may be made as part of or as an attachment to a partnership agreement. Here 100 is revenue and prof. The need for a revenue sharing agreement.

Premised on giving news agencies leverage to negotiate with online news aggregators on revenue sharing models. In this course telcos are supposed to share a percentage of agr with the government. What exactly is a revenue sharing model. As with profit shares only the profit is shared that is the revenue left over after costs have been removed.

Thus in this business model advantageous properties are merged to create symbiotic effects in which additional profits are shared with partners participating in the extended value creation. The government has introduced a more equitable system of sharing of revenues moving away from fixed rates to a revenue sharing model. Help provides for revenue sharing model the government will receive a share of the gross revenue from the sale of oil and gas etc and will not be concerned with the cost incurred. This is a win win situation for both parties.

Government audit limited only to production and revenue. Minimum regulatory burden ease of doing business. Upsc mains paper 3 1 1.