Pros And Cons Of Investments

Broadening the base of GST will also be compared to raising the rate of GST.

GST will reduce tax burden on producers and foster growth through more production. This double taxation prevents manufactures from producing to their optimum capacity and retards growth. GST would take care of this problem by providing tax credit to the manufacturer.

Reduces Income inequality – It aids in better distribution of income by compelling businesses to

2) If the introduced GST was to be equitable and effective, it will have many exemptions, thus leading to complication.

The class began with case “cardswap.” This business idea is to sell and buy gift card that is popular in Canada and U.S. market. In class, we discussed about “WHY WOULD YOU INVEST OR NOT INVEST IN CARDSWAP IF GIVEN AN OPPORTUNITY?” In my opinion, I would invest because it can grow. Nowadays, gift cards are popular in Canada, and U.S. market, but in the future Cardswap can expand to other countries. I thought that Cardswap is the great example of narrow down for market segmentation from general to be specific. Cardswap is a second hand product, and they specific to only buy and sell gift cards. After Hult if I’m not going to start up my business, I’ll work in a company that have chance to expand in to the global market, not a big company that already global. The reason is I can learn how to expand and be a part of them to succeed in global.

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

In the short run, the firm can only change its variable input to change its output and profitability. In the long run, the company can indulge in R&D to reduce the cost of production. If it can innovate any cost effective method of production, then the firm can enjoy a cost advantage over the other firms.

Taxes have significant effect on shifting supply and demand curves, which changes the market equilibrium price and quantity.

This paper explores and analyzes the different aspects of an investment in a company. Two different corporations were analyzed and a decision was made regarding which corporation would be given an investment. The acquisition of two corporations was not allowed, as there was a spending limit among the two. I made substantial analysis for the two corporations, as this is very significant for possible growth of our own company. I analyzed a five-year projected income statement and a five-year projected cash flow. I also determined the Net Present Value, and Internal Rate of Return among the two companies to make a decision. This paper also includes three peer-reviewed sources to combine with the theoretical explanations.

In addition, the price difference with world prices no longer exists, giving firms no incentive to export their commodities. In the long run, firms may increase production to resume their original points of export. However, this effect is abstract and only achievable if the government imposes a corresponding decrease in production taxes.

Quality job creation has been low, held back by complex labour laws. Tax reform could make growth more inclusive Tax revenue, 2015 or latest year available Note: Tax revenue includes social security contributions. Source: OECD Economic Outlook 100 database; OECD Revenue Statistics database; World Bank; Reserve Bank of India; Central Statistics Organisation. 1 2 http://dx.doi.org/10.1787/888933453263 A comprehensive tax reform would promote inclusive growth. Timely and effective implementation o f the Goods and Serv ices Tax wou ld support competitiveness, investment and economic growth. Government’s plans to reduce the corporate income tax rate and broaden the base will serve the same objectives. These two on-going reforms have been designed to be revenue-neutral while India needs to raise additional tax revenue to meet social and physical infrastructure needs. Property and personal income taxes, which are paid by very few people, could be reformed to raise more revenue, promote social justice and empower sub-national governments to better respond to local needs. Ensuring clarity and certainty in tax legislation and employing more skilled tax officers would strengthen the tax administration and make the system fairer and more effective. Policy reforms

GST has bought a uniform taxation across the country and allows full tax credit from the procurement of inputs and capital goods which can later be set off against GST output liability. This reform gives equal footing to the big enterprises as well as SMEs. The aim of GST is thus to simplify tax hurdles for the entire economy.

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 Goods and Services Tax (GST) is a vast concept that simplifies the giant tax structure by supporting and enhancing the economic growth of a country. GST is a comprehensive tax levy on manufacturing, sale and consumption of goods and services at a national level . The Goods and Services Tax Bill or GST Bill, also referred to as The Constitution (One Hundred and Twenty-Second Amendment) Bill, 2014, initiates a Value added Tax to be implemented on a national level in India. GST will be an indirect tax at all the stages of production to bring about uniformity in the system.

Let’s take an example, say, there is a reputed food products company which has a large market share, and products are in a huge demand. Suppose I buy a product, which costs to company is Rs. 100, and after 25% of tax it costs to me of Rs.125. Now after the implementation of GST, the tax is supposed to be at 17-19%, so I will be paying Rs.17 as tax on Rs.100, the total will be Rs.117. Now here comes the question, that if, the