Goods And Service Of India

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”.

An Economic Reforms Priority research report issued by the Grattan Institute dissects the possible benefits of tinkering with GST. It calculates that the GST-exempt goods and services equate to about 40 per cent of consumer spending, which means the government gives up about $30 billion a year in revenue. The institute recommends the GST be applied to all of these exempt goods, thus the additional revenue could fund substantial income and corporate tax cuts that would increase economic growth. This would raise an extra $31 billion a year in revenue and add $20 billion a year to the economy or an extra $870 a year income for everyone. The tax system would be far simpler for the Australian people.

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.

The taxes have had mixed feelings through it is believed that new taxes will most definitely increase inflation and promote under invoicing, which is expected to yield marginal benefit to the new government. Corporate tax will reduce which will encourage new industries and will cushion existing companies thereby increasing net income and increase in dividend payout. Sales tax will increase by 1 percent, but the likely impact will be much more than 1 percent. To target the youth, 50,000 youths will be given loans to launch their businesses. Youth below 25 years of age will get skill development training. These two initiatives

Tax in simple terms refers to the government raising money to spend on public services which includes health and social security system and education. Tax levied on a number of goods and services in the form of Value Added Tax (VAT), such as income tax on the money we earn. Tax can also be imposed on various transactions i.e. inheritance and profits from selling homes or antiques. The tax system is a complicated procedure.

the final point of consumption and not at the manufacturing stage. At present, separate tax rates are applied to goods and services. Under GST, there would be only one tax rate for both goods and services. The goods and services Tax will indeed be a further significant improvement towards a comprehensive indirect tax reforms in the country. Integration of goods and services taxation would give India a world class tax system and improve tax collections. It would end distortions of differential treatments of manufacturing and service sector. GST is expected to create a business friendly environment, as price levels and hence inflation rates would come down overtime as a uniform tax rate is applied. It will also improve government’s fiscal health as the tax collection system would become more transparent, making tax evasion difficult. An attempt is made in this paper to study

Business that have an annual turn-over of more than R150 000 must register for the payment of value added tax. (VAT)

The political, economic and social development of any country depends on the amount of revenue generated for the provision of infrastructure in that given country. However, one means of generating the amount of revenue for providing the needed infrastructure is through a well structured tax system (ogbona and ebimobewei, 2012). The vital role that taxation play in an economy cannot be overemphasized. Tax is a compulsory levy imposed by government or its agent on her citizens in order to raise revenue for the funding of economic activities. Nkoro and worlu, 2012 defined Tax as a fee charged or levied by a government on a product, income, or activity. If it is levied directly on

Abstract: India’s major tax reform is now realism. A comprehensive dual Goods and Services Tax (GST) has replaced the complex multiple indirect tax structure from 1st July 2017. Internationally, GST was first introduced in France and now more than 160 countries have further implemented GST/VAT in some form or other. In some countries, VAT is the substitute for GST, but conceptually it is a destination based tax levied on consumption of goods and services. Presently, only Canada has a dual GST model (somewhat similar to the Dual GST Model that India has implemented).Most of the countries, depending on their own socio-economic formation, have introduced National level GST or Dual GST, i.e.

This is generally regarded as the historic and game changing tax reform for Indian economy. Assuming GST to be an important element that can make the indirect tax system very efficient and will benefit all the participants including manufacturers, sellers, the ultimate consumers and the tax collecting government.

There is hereby imposed and charged a tax to be known as the Value Added Tax… which shall be administered according to the provisions of this Act."

Besides being the main source of direct tax revenue for the Government, income tax is an effective instrument to realise various socio-economic objectives of national policies. This chapter traces the evolution, explains the legal framework and describes the present system of income tax in india.

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.

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.