Essay On Gst

Business taxes can have a huge impact on the profitability of businesses and the amount of business investment. Taxation is a very important factor in the financial investment decision-making process because a lower tax burden allows the company to lower prices or generate higher revenue, which can then be paid out in wages, salaries and/or dividends. Business taxes include, Federal Income Tax; a tax levied by a national government on annual income, Payroll Tax; a tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee, Unemployment Tax; a federal tax that is allocated to unemployment agencies to fund unemployment assistance for laid-off workers, and Sales Tax; a tax imposed by the government at the point of sale on retail goods and services. Sales tax is based on a percentage of the selling prices of the goods and services. Consumers pay sales taxes, but effectively, business pay them since the tax increases consumer’s costs and causes them to buy less.

The national sales tax would replace our current income tax system by taxing goods and services. Under this system of taxation, people would pay taxes on every item purchased and not on income. This would help the economy through sales. "There would no longer be an inheritance tax or a capital gains tax. The government would impose a 17.65 percent tax on the value of all final sales to consumers. To protect lower-income citizens, the government would send all households periodic rebate checks, the net effect of which would be to offset the tax burden on purchase up to the poverty level" (Mitchell 2). This national sales tax is a popular

Should the federal government proceed with broadening the base AND increasing the rate of the GST rate to 15%?

What are three types of taxes that you pay (or are likely to pay in the future?) Describe these types of

Indirect taxes are charged by government on producers or suppliers. The main aim of these taxes is to reduce pollution and improve the environment. The examples of indirect taxes are value added tax (VAT), excise duty, air passenger duty, insurance taxes such as car, home or pet insurance, TV licence or driving licence.

Let us assume, a businessman in Rajasthan has purchased goods for Rs 10,000 and the tax of goods and services at 18%, which will include 9% CGST tax and 9% SGST tax. In such a case, if the dealer has to pay Rs 1800, then Rs 900 will be given to the Central Government and 900 rupees of Rajasthan government.

Tax Avoidance and the interpretation of sections BG 1 and GA 1 of the Income Tax Act 2007

The middle class income really affected by GST, most of the middle class work in government and the private sector. The CUEPACS and MTUC comments that the increase of tax relief help the civil servant and private worker to coup the cost of living. For those high income brackets are from RM 600,001 to RM 1 million and RM 1 million and above the income tax rate increase to 26% and 28% also 28% for fixed tax rate for non-resident. This new tax rate comes with different perceptions, government impose higher tax rates to a high income level in order to reduce the wealth gap between the citizen as well promote well-being of the nation.

The provinces levy taxes primarily on gross business receipts (turnover tax) and on real estate and, jointly with municipalities, they levy charges for services.

The biggest tax reform in the history of India’s 70 years of independence, the Goods and Services Tax (GST), was launched on the midnight of 30th June 2017. This new GST is an indirect tax, which applies throughout India. It replaced multiple cascading taxes levied by the central and state governments.

Direct taxation : wealth tax, income tax for individuals who are NRIs , resident of India, company.

VAT was introduced at a uniform rate of 15% at the manufacturing-cum-import level. Together with protection-neutral supplementary duties, this system largely replaced the earlier structure of differentiated sales tax on import and excise duties on domestic goods. In case of personal income tax, the major reforms involved the inclusion of entertainment allowances in the personal income tax base, deduction of investment in approved assets from the tax base, and an introduction of a withholding tax on dividend with limitation of special expenditure within a reasonable limit. Steps were taken to reduce interest rates on government savings instruments and subsidies for food and jute. A good number of public sector enterprises were denationalised through sales to the private sector.

Goods and Service Tax (GST) : GST has been in News since early 2016. The GST Bill is already passed in few states including Assam as Assam became first state to pass the Goods and Service Tax (GST) Bill. The Council was headed by Finance Minister Arun Jaitley and comprising representatives of all states in the meeting that was held in J&K. GST came into act from 1st July 2017. The tax rates on Goods and Services has finally been sanctioned by the GST council. Goods and Service Tax (GST) is nothing but the one and only one indirect tax for the whole nation, which will make India one unified common market place for all the vendors and consumers. Goods and Service Tax GST) is now has become the only tax on the supply of goods and

Goods and services tax (GST) plays a significant role in economic growth and fiscal strength in the world leading to eliminate VAT, Excise and cascading. There are 160 countries where GST has already been enforced but in India it is levied in 1st July 2017 which modified the whole scenario of indirect tax policy. In India, it has become a reforming tax for Indian economy by developing a common Indian market after independence (CBDT, July 2017).In India, it has become a reforming tax for Indian economy by developing a common Indian market after independence. The idea of one nation, one tax is welcomed by every community of India such as businessmen, Government, Professionals and industries. Additionally, the objective of GST is to increase

The tax rate under GST would be lower, however, there would be an increase in the number of assesses. The increased number of assesses is expected to make up for the reduced tax and the overall tax collection is expected to increase.