Essay On Gst

Indirect Taxes relates to VAT and Excise duties. VAT is sales tax which is collected by the business (Tesco) and given to the government. Essentially if increased it would increase the price of Tesco’s products, this subsequently

Oppressive tax laws were passed by the British government. British Parliament later created the Townshend duty in June 29, 1776, this charged a tax on imported items like paper, paint, glass, and tea. Indirect tax which means that a specific tax, value added tax, or goods and services tax is a tax collected by an intermediary from the person who bears the ultimate economic burden of the tax. Direct tax which means a tax, such as income tax, that is levied on the income or profits of the person who pays it, rather than on goods or

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 second of the tax components is sales tax. Sales tax is usually controlled by the counties as

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%

Understanding the purpose and framework of taxes, assist with the understanding of the Tariff and quotas. Tariff is a tax placed on import goods by the government. Nevertheless, when one thinks about additional dollars added to the retail price of a good or service, it may be discouraging. Especially, since there is an abundance of services and goods desired by consumers- with so many wants, our resources are scarce. Meanwhile, there is a constant debate concerning the effects of tariff that are placed on imports and exports. Economist and scholars believe high taxes on imports and exports can hurt the economy. Indeed, there are advantages and disadvantages concerning the Tariff .

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

Additionally, the retail and wholesale trades charge GST as a matter of law, retail prices must include any applicable GST, if someone (for instance, walks into a homewares store sees something they like and it’s an international brand, they can take the details of that or they can view it online, see it in a catalogue, wherever they derive their inspiration from, they can go online, view an overseas retailer, or overseas E- trader site, see if the item they’re interested in is available and order it. As long as the total purchase is under $1000 and the documentation is simply whatever the overseas supplier puts on the package concerned, which is already clearly open to abuse, it simply passes through customs without any leverage whatsoever, is simply sent through whatever logistic service it’s been sent by, onto the consumer in Australia whose purchased the goods or prepaid for them in their order, if the goods are imported by a major or commercial importer, in the first instance the applicable duties are paid before the goods are cleared, there are costs associated with the commercial clearance of goods, customs brokers have to be paid and so all manner of port charges are levied, and these charges are not inconsiderable, then gst is also payable by the importer, the goods then pass into the retail trade, where there

Income tax and NI are the two biggest source of tax revenue for the govt, changes to either of these directly relate to disposable income, which in effect changes consumer demand. Consumer demand is a major factor for Tesco as a business as and an increase would mean more sales and a higher income, a decrease would lead to lower sales and lower income for Tesco’s. A lesser income would mean smaller profits which in turn might mean lower investment and employment levels.

This inflates the price of their products. These “embedded taxes” are passed on to the companies that purchase these products in the course of their own business. This effect is cumulative and happens at every stage of the supply chain, until the product reaches the consumer. In the end, the consumer pays the tax burden of every company that had a hand in the production and distribution of that product. It is estimated that these embedded taxes account for 22% of the price of products and services (Boortz and Lender 53). Under the fair tax, no product would be taxed more than once. When the consumer buys the product, the consumer pays the tax, and then the seller remits that tax to the federal government.

goods and services. If importers of such goods pass the cost of that tax onto consumers,

Sales tax relies heavily on nexus. That is to say no nexus, no sales tax. However, when drop shipping is the sales tax responsibility the retailer's, the distributor's, both, or neither? The answer may surprise you.

Since Uber started up, the issue of GST has been very controversial. Until recently, customers did not have to pay tax for the service (part of the reason why Uber was so cheap and therefore attractive). The Australian Tax Office has since forced Uber to change it’s policies and as of August 1, has increased it’s prices by 10% to cover these new costs. Uber is now challenging the ATO’s decision in the Federal Court.