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.

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.

Because the principle of supply underlies the GST legislation. It is the fundamental precondition for liability to arise from the legislation. The definition of a supply and the mutually exclusive concepts of taxable supply, input taxed supply, and GST free supply, provide the critical element in the application of the legislation.

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%?

Being a Registered Dietitian, the first thing I say to all of my clients is to drop the pop. I’m not the only one who is urging Canadians to put down these sugary beverages. This year the Heart and Stroke Foundation is pushing the government to introduce an excise tax on sugar-sweetened beverages (SSBs) (1). This idea has been floating around for several years but gained traction this summer when the Finance Minister requested a pre-budget analysis for SSB taxation (1). The proposed policy would put the burden on manufacturers by adding a tax of 5 cent per 100 millilitres on SSBs such as pop, iced-tea and certain juices (1).

As we approach election day, both front runners; Donald Trump and Hillary Clinton have proposed their policies if they were to take office. Hillary Clinton is advocating to increase tax on the top one percent, while Donald Trump wishes to cut tax (especially for the wealthy and middle class). Trumps policy mirrors the trickle down system; where we cut tax on the rich, leaving them with more money in which we assume they will invest. Yet, we have seen this to be a failure since the rich do not invest their money, rather, they save it. Trump's proposal is more of a tax relief when compared to Secretary Clinton's plan, however, Trump's proposal could cause more problems to rise.

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

First, receipients of goods already pay sales taxes on those goods, thus by raising income tax for the argument of goods received, the government would unfairly double tax consumers. Moreover, their product is merely one

1. Samantha Corporation owns a building with a fair market value of $70,000 and an adjusted basis of $40,000. It exchanges the building for land with a fair market value of $45,000. Also assume that Samantha has a $10,000 mortgage on the building. As part of the exchange, the owner of the land agrees to assume the mortgage and pay the corporation $15,000 in cash. What are Samantha’s realized gain, recognized gain, and basis in the land?

“In this world, nothing can be said to be certain except death and taxes”.Taxes are inevitable, the government uses our tax dollars for many things that every citizen utilizes in some way or another. The United States government spends money in areas such as military, social security, interest on the national debt, veteran benefits, food and agricultural benefits, and education programs. A popular topic lately is, are the wealthy taxed enough or are they over taxed? Do the wealthy pay their fair share based on how much they make?

It may be surprising to know that those big men you see bossing you around and flashing cash at you, are actually being stolen from. And not just a little. For you, lovely taxpayer are very aware that you are paying your “fair share” of your “hard earned money” and aware of all the “free” programs “your” money funded. You the lower 50 percent by terms of population and wealth only account for three percent of the federal income tax annual revenue. You use the “free” programs such as food stamps, and social security, and the like, as though “you” “payed” for them. Not surprisingly, :”you” feel like “you” are taxed too much, what do you do ? You blame somebody else ! (of course you do) Guess who ? The funder of all the spectacular government programs you use and “earned”. You want to make all men equal, Guess what? There not so , TOO BAD!

When the GATT made the distinction between the two taxes, value added taxes or VATs were rarely used. Since the VAT replaced the EU’s multi-stage sales tax system, the GATT classified the VAT as an indirect tax. This was a mistake on the GATT’s part as Hufbauer author of The Foreign Sales Corporation Drama: Reaching the Last Act? explains “GATT alchemy transforms a series of

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.

The application of the Goods and Services Tax was rationalized as a way to coalesce all the individual and indirect taxes that are applied for various goods under one taxation regime (Roy, 2016). The objectives cited in the move to introduce the new tax regime was to increase the tax base of the government, to remedy the cascading of taxes, to improve the compliance in the payment of taxes and to eliminate the distortions in the economy that result from the difference in the taxes levied from one state to another (Roy, 2016). In the backdrop of these objectives and the modus operandi of the new tax regime, different players in the industry have felt that it will be counterproductive in certain segments of the Indian economy.