Gst Research Paper

• It is discovered that $10,000 cash received during the year and credited to sales are actually related to services to be delivered in July 2014. • $5,000 of wages relating to June 2014 have not been paid and need to be accrued. Part A (12 Marks) Prepare journal entries for the necessary end of period adjustments. Debit Credit

Use SRB.Voucher2 to see what invoices were coded to GLAC 741 for the location and department that you are working on. On line 6 of the query check GTE to = and on line 7 change 201710 to the current months date.

(Tax/Financial Year = I July – 30 June) – Income tax payable on a year-by-year basis s3-5 ITAA97.

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%

Allow a 30-day grace period on all accounts receivable overdue at the end of the year. As these accounts will no longer be overdue, the company will not need an allowance for overdue accounts.

The date in which the valuation will take place will be on the 28th of March

Goods and Services Tax (GST) is the current topic which is continuously in flash under the scenario. First of all, we have to understand the meaning of GST. Goods and Services Tax (GST) is a comprehensive VAT system which will ultimately ensure flow of uninterrupted credit among different sectors whether in manufacturing of goods, sale or consumption of goods and services. It is one indirect tax which will be levied on the supply of goods and services at the national level which will make the entire nation (India), a single or common market. Almost all indirect taxes will be eliminated, once GST comes into power. One of the most basic feature of Goods and Services tax is that consumers will have to pay the tax for one time at the final level of the transactions on the supply of goods and services but not at the various levels. The thing which is more interesting about Goods and Services Tax is that it will avoid both ‘cascading effect’ and ‘multiplicity’ of tax. Here, the word ‘cascading effect of tax’ means paying of tax on tax which is already paid on previous purchase

(A) - Full input tax credit can be claimed if GST registered persons acquire the asset for the principal purpose of making taxable supplies.

There has been a huge uproar by the local governments to exclude local taxes from the GST. This will have serious consequences since GST is expected to replace all the local, state and central taxes with a single tax. Additionally, the business entities would be hesitant to pay double taxes (since GST is inclusive of all the taxes- that is why it is the highest in the world).

Import entry need to be made before clearance of goods before or within 20 days of actual entry of goods. Custom clearance need to be applied before actual arrival of goods.

4.6. The Seller carries the responsibility for correctness of filling of the accompanying documents and its delivery to the BUYER in proper time. In case of absence any documents are indicated in point 4.5. and delay in its delivery being happened because of the SELLER fault, the SELLER must compensate to the BUYER all expenses connected with its re-registration or goods delay.

Excise duty exemption is withdrawn on charger/adapter, battery, wired headsets and speakers of mobile phones. Also, excise duty of 2 percent (without CENVAT Credit) and 12.5 per cent (with CENVAT Credit) to be levied, subject to certain conditions.

GST is going to subsume all the other taxes keeping compliances easy and ontime deposit of taxes.

Note: The gross receipts from the transport of cargoes by domestic carriers by land shall still subject to 12% VAT. (R.A. 9337)

Under the CST Act, general and specific exemptions are granted on certain goods while VAT does not permit such exemptions. Under the CST law, concessional rates are provided on certain taxes. The VAT regime will do away with such concessions as it would provide the full credit on the tax that has been paid earlier.