Value Added Tax Final
Oliver Wendell rightly said - “I like to pay taxes. With them, I buy civilization.” True indeed. With the practice of paying taxes, you not only show yourself as a responsible citizen towards country, but you are contributing some portion of your income towards the betterment of the nation.Government has various policies and to get them operational in the system funds are required. These financial resources are earned in the form of taxes from the residents of the country. Hence taxes come into being and they are classified into 2 basic categories, i.e. Direct and Indirect. VAT is an example of Indirect taxes imposed on buyers.
Value Added Tax that is also known as goods and services tax i.e. GST. It is most common and
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Any business that has a certain amount of turnover are supposed for VAT registration. It is enforced for the businesses if they reach the mentioned threshold in terms of turnover. It is necessary for the business to register for VAT if they wish to supply the goods and services to others. If annual sales of your annual sales is more than Rs 5 Lakh. (This varies according to different state policies)
Several benefits of registering VAT can be-
• You are entitled for VAT deduction for trading of raw materials for your businesses if you are self-Vat registered.
• It makes your business seem credible, legal and larger.
• Person is eligible for VAT
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January/February, March/April and so on).
• Payment by Direct debit:
A person using a bi-monthly VAT accountability of equal to Rs 50.000 might pay VAT by direct debit in periodic monthly sections. If an occupational is recurrent, a person can diverge the expenses paid every month to redirect cash flow.
VAT expenses are final payable by the 25th day of the first month initiating later the end of the tax age, for companies who file their revenues and make expenditures electronically. For e-filing, this date it is the latter business day of the month afterward the conclusion of the tax period.
• Payment through e-filing
This facility can be accessed if-
• One has a bank account with the net banking facility and when your bank also provide you with e payments facilities.
• You can also opt for going straight to approved website of bank for the e-payments of sales tax.
The government of the United Kingdom, likewise the government of many other countries, raises money to spend on public services towards the tax system. The taxes are raised by two different levels of government, the HMRC, Her Majesty’s Revenue and Customs, and the local governments, as Barnet, Islington, Camden, Haringey, among others twenty nine local authorities in London, for instance. While the HMRC deduces taxes through Income tax, National Insurance contributions, VAT, corporation tax and fuel duty, local governments are responsible for business rates, council tax and other fees, such as on-street parking. In turn, the money deducted for tax purposes are applied to improve the health, education, social services and social security system. There are different types of taxes for different circumstances, for example, you have to earn above a certain limit to qualify for income tax and if you are self-employed you may be entitled to claim back much of your VAT (BBC, 2009).
Under section 14 of sales of good act 1979 all goods send to customers must
Filing and payment – Individual income tax on employment income is subject to withholding, payment and reporting by the employer. Payment is due by 25th of the month following the month the income was paid. Income and tax should be reported on a quarterly basis by the 15th of the second month following the reporting quarter.
Taxation is as old as civilization itself. Kings and governments collected tribute from their peasants and citizens even before the invention of currency. Taxes in a form of cattle and labor were popular. However, in the modern era every industrial nation taxes their citizens though multiple ways. Federal income tax and sales tax are some examples of government taxation. Taxation is essential for any government, as it is their primary source of income. For instance, the Internal Revenue Service, a U.S. government agency responsible for tax collection, “receives over 140 million individual tax returns and collects over $950 billion in taxes” (Wood). Considering taxation is human made, it does have flaws that affect both the poor and the rich.
vat at this current moment that the brain will not be able to tell a
Income Taxes: Monies generated from sales or services rendered are considered normal personal income to the owner and as such, are only taxed once, but are often subject to the highest rate of taxation.
Taxation has always been a major controversy. Just like any major corporation, the government is constantly looking to raise revenue. The easiest and fairest way to do this is by taxing the people. However, how the people will be taxed is always an issue.
Taxes play a big role in society nowadays. Everything we earn and spend is taxed. There are 2 types of taxes, Direct and Indirect i.e. the 2 Ugly Sisters of Tax. Direct refers to Income Tax and Indirect refers to VAT (Value Added Tax) Thomas Paine looks at how tax was shifted from the rich to the poor thereafter a tension arose.
The four types of taxes this paper will discuss are income tax, sales tax, property tax, and user fees. Income tax was not permanently established until the 16th Amendment was passed in 1913. Most federal taxes had been previously derived from excise taxes on tobacco and alcohol and other consumer goods. The US Constitution, when written and still continues to, legitimize taxation in the United States through Article I, Section 8, that Congress has the power to lay and collect taxes, duties et al, pay the debts or provide for the common defense and general welfare of the United States (Cornell Law LII). Investopedia defines income tax as ‘a tax government(s) impose on financial income generated by all entities within their jurisdictions (Investopedia, 2014). Businesses and individuals are required to file an income tax return every year to determine if they owe taxes or qualify for a refund. That is determined by measuring the total income one earns to a designated tax rate, calculating one’s taxable income, which are some or all items of income reduced by other adjustments or expenses in that tax year. There are different subcategories of income tax; there is a federal income tax that is set by the federal government, apart from a few states, there is a state income tax that is imposed on their respective residents, as well as the possibility of there being local income tax ...
Taxation is a compulsory levy imposed on the income, value of goods and services of individuals, partners and companies by the government. It is can be said to be an approach of imposing tax on the citizen. This imposition of tax, is expected to yield income which should be utilized in the provision of both basic and substantial infrastructural amenities, both social and security, as well as creates conditions for the economic well-being of the society at large.
The tax year is from 1st January to 31st December. There is a self-assessment system, on a previous year basis; a company must submit its tax return six months after their financial year end. Returns must be accompanied by full payment of tax due.
We see this every time we make a purchase, taxes are a part of everyday spending. Taxes come in many forms, from income tax, to sales tax, to property taxes. As citizens of the United States, it is a requirement for us to pay our due share, and this comes in the form of taxes. The impact from taxes grossly affects the both personal finances and the economy on a grand scale. So why does the government require us as citizens to pay taxes? Well according to the article why do you have to pay taxes?
From PayPal to Debit cards, from EFT to Credit cards, this modern world has been inundated with new ways of making business transactions. Instead of the conventional use of dollars and nickels, now there are electronic payment systems. These types of systems allow for better trust and acceptance between consumer and businesses. In the traditional way of buying a product, one would see a product in person, and pay for it with cash or credit. In e-commerce, the business uploads images of its products online and it enables its customers to shop it using any type of electronic payment system.
2. Should the component costs be figured on a before tax or an after tax basis?
Tax expenditures are popularly known as tax loopholes or tax breaks. It departures from the normal tax structure and ...