Essay On Gst

Tariffs exist in many different forms, and have various uses dependent on the economic situation and outlook. They can be specific such as a set tax per item, or ad valoreum, with a percentage tax per unit. (McEachern, 2015, p. 282) This paper will discuss function of each and the positive and negative effects of the use of these various tools.

Having a value-added tax has many different views, but many cons are shown through the system. With having a value-added tax means the tax on the amount of an item goes up based on its production or distribution. Value-added tax being implemented would clear out many peoples savings. It also would be a struggle on the lower classes, and has been called an “unfair regressive tax”.

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.

Yes. Because GST is a tax of 10% which is applied to most Goods and Services. The 10% GST is included in the sale price you charge to customers.

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

The budget will also be adversely affected. The net loss in the budget would be about 2.5% of the country’s GDP representation $4.5 trillion. There are the figures that could have developed with the implementation of the tax policy in the country. The adverse effects of the tax policy has forced the federal government of the United States of America to shift to the alternative minimum taxation as it is stipulated in the Tax Relief Reconciliation Act of 2001 law. This was more lenient as it had much negative effects on the operation of the country. Even though the revenues and the budgets are affected, the effect of the alternative taxation was no such much adverse. The alternative taxation served the real need in the society.

tax is emitted from the inventory balance and a GST receivable account is created when buying

Tax invoices are the document issued by the supplier for the notification of payment transaction. The tax invoices must be issued within 21 days when the services are performed or the good are delivered with no payment made. GEODIS can claim the input tax if the tax invoices receives within 21days. Imported services or second hand good are not allowed to issue the tax invoices. The tax invoices must have the information of full company name and addresses, registration company codes, GST registration, invoices number, the description of good and services, the description it must distinguish the type of supply for zero rate, standard rate or out of scope and the total amount. Therefore, the tax invoices without the company full name will be rejected and the vendors need to resend the complete invoices. There are four type of supply I need to identify when key in the tax invoices which is standard-rate supply, zero rates, out of scope and exempt supply. Standard-rate supplies are the good and services will be chargeable in 6% GST and paid to the government. The businesses can claim the input tax. Zero-rated supplies are the GST charged at 0% on the taxable supply and the GST paid on input is claimable. Exempt supply is no GST chargeable on the good and services with no claimable of input tax. Examples of exempt supply are land used for residential, private education services, public transport and healthcare services. Out-of-scope supply is no GST charged because is not within the boundary of GST and input tax is not claimable. (ROYAL MALAYSIAN CUSTOMS) The description in the invoices must clearly record the GST charges for examples the profit share, custom duty and tax payable on the value goods are not subject to GST, customs clearance/agency, license fee and pier/ gate pass will be chargeable in 6%

As it stands right now, the government has individual taxes for individual needs. The key thing to remember is that regardless of what those needs may be, and the demand for them allows money to get allotted. Under this 15% sales tax all the money goes to the federal government, and it is distributed as needed. Essentially, this makes the government more efficient, and much more simple.

There are two main types of taxes, indirect tax, and direct tax. Direct tax regards to tax that is levied directly on those who eventually pay them and cannot be moved on to others. While the Indirect Tax is a tax that can be exchanged in all or part to someone other who directly liable for payment. So, buying something from stores or and paying VAT is already recognized as the indirect tax payment. Overall, taxes are significant in our economy and society; I realized that each person of us must have contributed in developing our economy and that is through our taxes. But, right now I feel that money that we pay (tax) were not used correctly. Probably the government should use the money for the development and improvement of our very own society. After all, this Taxation is a material that helps a person understand how to spend money the on the right way and how to spend money on various taxes such as buying and selling products. It helps us to classify the different type of tax, how to calculate average and marginal tax rate. Also, it help to explain different tax system and how to calculate the VAT. We learn how to classify qualifying

Should the flat tax rate system be implemented? No, the flat tax rate system should not be implemented. In this paper, the pro arguments will be presented, which will affirm the thesis. Then the con arguments will be presented. A rebuttal will then follow, and finally, the author’s conclusion will be offered.

There are lot of concerns to this issue. Why is the government imposing this tax and proposing to the community? Why are people against this tax? People are against it

Tax system is a legal system of imposing and collecting taxes from the citizens of the country. As it has been stated by Albert Einstein, the hardest task in the world is to understand the tax system of a country. The United States’ tax system is so complicated that its tax code contains almost 3 million words and 6,000 pages. Moreover, the taxes implied by city and state governments add more complexity to the federal taxation system. In this case, we do not need to understand the complexity of tax code system in order to get acquainted with the significant role of taxes in American society.

The businesses among the process of production, collect the taxes from the products they sold and it is then given to the government. Therefore, it is a general consumption tax because the tax ultimately falls on the final consumer. VAT is also referred as an indirect tax because it is collected by the government from the seller (the businesses) and not the final consumer who pays the tax. This process of adding a tax in each stage of production differentiates itself from a sales tax (Anastakis, N.D.). Dimitry Anastakis, demonstrated this difference where he gives the following example, “if a sales tax of 10 percent is applied to a desk worth $1,000, then the end customer buying the desk from a desk retailer would pay $100 in sales tax and $1,000 to the desk retailer” (N.D.). Therefore, all others involved in each step of production of the desk would pay no tax only the consumer. Further, Anastakis states, “If a VAT of 10 percent is applied to the same desk, the end customer will pay $100 in VAT. If the desk builder has purchased wood and supplies for the desk totaling $400, he/she is thus assessing $600 of value that he/she has added in creating the desk. The desk builder would pay the 10 percent VAT of $40 on the supplies. When he/she remits payment of the VAT to the government, he/ she will remit the total VAT assessed on the end value of the desk ($100) minus what he/she has already paid ($40), to total $60 based on the added value” (N.D.).

One of the most evident and thought provoking aspects that we see as consumers on a daily basis is the effect of sales tax. The effect of sales tax vary from the examination of how much this tax can increase our purchases. To why there are higher and lower tax percentages based on different purchases. Knowing that this tax is in place determines the actions of both sellers and consumers. With sales tax continuing to evolve and change certain bills such as the Remote Transaction Parity Act of 2015 have been put into place and action.