...Indirect Tax Indirect taxes include value added tax, a range of excise duties on oil, tobacco and alcohol and fuel duty. VAT is levied on the sale of goods by registered businesses. Businesses add VAT to the price they charge when they provide goods and services to business customers - and non-business customers. There are different VAT rates, depending on the goods or services that are being provided. At the moment there are three rates: standard rate – 20%, reduced rate - 5 %, zero rate - 0 %. The standard rate of VAT is the rate that's charged on most goods and services in the UK. Some examples of reduced-rate are domestic fuel and power, energy-saving material and children's car seats. The examples of zero-rated items are food, books and newspapers, children’s clothes and shoes, public transport. Excise duty is paid on alcohol, tobacco and fuel. This is paid on top of VAT and UK is high relative to most EU countries. These taxes are levied by the government for a number of reasons – among them as part of a strategy to curb pollution and improve the environment. Some of the reasons for using indirect taxes should be briefly mentioned. Indirect taxes may assist in the redistribution of income, though various unfortunate side-effects were existed. Also, indirect taxes may be able to correct for market imperfections, such as the effects of monopoly on the supply of particular goods and the existence of externalities ignored by producers. In addition, where people...
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...Tutorial 1 Dr. Nakha Ratnam Somasundaram Sales tax and service tax Question 1 What do you understand by sales tax? Answer 1 It is form of indirect tax imposed on consumers and collected by enterprises. It is accounted by the enterprises to the Royal Malaysian Customs and Excise Department. Question 2 What is the scope of charge of the sales tax under the Sales tax Act of 1972 (as amended)? Answer 2 Section 6 imposes the tax. Under that section, sales tax shall be charged and levied on all taxable goods: a) Manufactured in Malaysia or acquired under the provisions of section 9 by a taxable person and sold used or disposed of by him, otherwise than by sale or disposal to a licenses manufacturer authorized by the Director General to acquire such goods without payment of tax b) Imported into Malaysia by any person for home consumption It is a single stage tax. A single stage tax means it is imposed only once. And it is imposed upon acquiring manufactured products from manufacturers or by Customs when the goods are imported from outside Malaysia into Malaysia. At the manufacturing stage, the tax is imposed at the output level. The taxes are collected and paid over to the Customs by the manufacture. In the case of import the importer would pay the tax to the Customs. However a manufacturer acquiring a product form another manufacturer for additional processing would not be liable for sales tax and where such taxes are paid, it could be recovered...
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...NOTE AUDIT REPORT AND WORKING PAPERS OF M/s Global Industries, 609-560/1 & 2, Jigani Industrial Area, Bangalore – 562 106 UNDER EA - 2000 (AUDIT PERIOD: Sept 2011 to Sept 2012 Auditors Shri S.P.Vasan, Superintendent (Audit) and Shri Bhanu Srinivas, Superintendent (Audit) SUPERVISION & GUIDANCE Shri Shrawan Kumar, Addl.Commissoner (Audit) Shri B.N.Ramesh, Asst.Commissioner(Audit) CENTRAL EXCISE BANGALORE – I COMMISSIONERATE WORKING PAPERS TO BE USED WITH STANDARD AUDIT PROGRAM FOR UNITS PAYING ANNUAL PLA REVENUE MORE THAN RS. 1 CRORE. (Approximate period of audit inclusive of preparation – 10 working days) INSTRUCTIONS FOR FILLING UP THE WORKING PAPERS 1. Each part of the Working Paper (starting from Part C) should be filled up on completion of the relevant audit step. The date on which such part is completed and Working Paper filled should be mentioned. Part A& B can be filled up at the end before submission of the Working Papers. 2. The completed Working Papers must be submitted by the audit team with the draft Audit Report (prepared as per proforma given in Annexure N in Part IV) forming the top sheet. 3. Copies of supporting documents/records/evidences referred to in the Working Papers must be annexed at the end. Each of the copy should be cross-reference to the relevant entry in the Working Paper. 4. The Working Papers form the basis...
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...to keep the human body alive so is taxation to keep the economy alive. Developing countries suffer from dearth of revenue because of low taxable capacity as the majority of people live below the poverty line with hardly any capacity to pay taxes to the government. On top, legal base of taxation is condensed with unrestricted tax shelters and tax administration is short of modern mechanism to spot new tax payers and bring them into the orbit of tax- net. According to the theory of structural change of taxes during the developmental process, the contribution of direct taxes will grow with the rise in per capita income, in turn the contribution of indirect taxes will comparatively slow down. Direct taxes have tactical importance and its preference over indirect taxes is claimed on the ground of neutrality, welfare and excess burden. With time, it has been established that direct taxation gives the best accountability degree which translates to good governance, whereas indirect taxation have less tangible effects. International comparisons of contribution as a percentage of revenue to GDP in developed and developing countries are as follows: - Tax/GDP ratio of Sweden was found to be 49.7 percent in 2008, while it was 50.0 percent in Denmark, 46.8 percent in Belgium, 36.5 percent in New Zealand, 28.2...
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...monitoring and enforcement d. Government Provisions vii. Direct 4. (+) – Merit goods become cheaper and more accessible for more people, even those in rural areas 5. (-) – More tax revenue is used. It could be used in other sectors. – Its highly debatable, who knows ore of b. Demerit Goods e. Indirect tax viii. (+)- Increase price ix. (-)- PED inelastic f. Regulations – exactly the same g. Min price policy x. Same with indirect tax xi. Excess supply xii. Shadow market TAXATION * Tax rate: refers to the percentage of tax imposed by the government * Direct tax: tax that is directly cut from income * Indirect tax: tax that is imposed on goods and services * Ad valorem – VAT * Based on a percentage of the value * Specific – Excise Duty * Tax revenue: refers to the total amount received by the government from the tax collected * Tax incidence (Tax Burden) * This refers to the analysis of the effect of a particular tax on the distribution of economic welfare. * Depends on the PED and PES * The more quantity demanded of a product is price inelastic, the more tax incidence falls on...
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...DRF 27: Entrepreneurship and Management of Small Business Name: Aswin J . R Enrolment No: A12N28165008 I. Critically examine the uses of Entrepreneurship Development Programmes (edps) in India. Entrepreneurship plays a very important role in the economic development. Entrepreneurs act as catalytic agents in the process of industrialization and economic growth. Joseph Schumpeter states that the rate of economic progress of a nation depends upon its rate of innovation which in turn depends upon the distribution of entrepreneurial talent in the population. Technological progress alone cannot lead to economic development unless technological breakthroughs are put to economic use by entrepreneurs. It is the entrepreneur who organizes and puts to use capital, labour and technology in the best possible manner for the setting up of his enterprise. Importance of entrepreneurship development programme (EDP) is to enable entrepreneurs initiating and sustaining the process of economic development in the following ways- 1. Creation of Employment Opportunities: Unemployment is one of the most important problems confronting developing and underdevelopment countries, EDP's enable prospective entrepreneurs in the setting up of their own units, thus enabling them to get self-employment. With the setting up of more and more units by entrepreneurs, both on small and large scale, numerous job opportunities are created for the others. Entrepreneur...
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.................................................................................... 4 - 23 CHANGE IN CENTRAL PLAN OUTLAY..................................................................... 24 RECEIPTS .......................................................................................................... 25-26 EXPENDITURE ................................................................................................ 27 - 28 KEY ECONOMIC INDICATORS (Absolute Values) ................................................... 29 KEY ECONOMIC INDICATORS (Percentage Change Over Previous Year) ............... 30 UNION BUDGET 2010-11: Impact Analysis BUDGET AT A GLANCE (Rs bn) 2009-10 Revised Estimates 1) Revenue Receipts 2) Tax Revenue (net to centre) 3) Non-Tax Revenue 4) Capital Receipts (5+6+7)$ 5) Recoveries of loans 6) Other receipts 7) Borrowings and other liabilities * 8) Total Receipts (1+4)$ 9) Non-Plan Expenditure 10) On Revenue Account of which, 11) Interest Payments 12) On Capital Account 13) Plan Expenditure 14) On Revenue Account 15) On Capital Account 16) Total Expenditure (9+13) 17) Revenue Expenditure (10+14) 18) Capital Expenditure (12+15) 19) Revenue Deficit (17-1) % of GDP 20) Fiscal Deficit {16-(1+5+6)} % of GDP 21) Primary Deficit (20-11) % of GDP 5,772.94 4,651.03 1,121.91 4,442.53 42.54 259.58 4,140.41 10,215.47 7,063.71 6,419.44 2,195.00 644.27 3,151.76 2,644.11 507.65 10,215.47 9,063.55 1,151.92 3,290.61 (5.3) 4,140.41 (6.7) 1,945.41 (3.2) 2010-11 Budget...
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...to the Government using which it provides various kinds of services to the tax payers. There are mainly two types of Taxes, direct tax and indirect tax which are governed by two different boards, Central Board of Direct Taxes (CBDT) and Central Board of Excise and Customs (CBEC). 1) Direct Taxes Direct taxes are the personal liability of tax payer. These are collected directly from the tax payers and they have to be paid by the persons on whom it is imposed. Important direct taxes are listed below: a) Income Tax - This is most important type of direct tax and almost everyone is familiar with it. TDS is its famous synonym and whosoever is earning above a minimum amount (tax exemption limit) has to pay income tax. b) Wealth Tax - This is in addition to the income tax and is levied if your net wealth exceeds Rs 30 Lakh at the rate of 1% on the amount exceeding Rs 30 Lakh. *Note - In Budget 2013-2014 Finance Minister Mr P. Chidambaram introduced a surcharge of 10 percent on taxpayers with an annual taxable income of more than 1 crore (10 million) rupees. c) Property Tax/Capital Gains Tax - This is levied on the capital gains arrived by selling property and stocks. Tax rates are different for long term and short term capital gains. d) Gift Tax/ Inheritance or Estate Tax - Amount exceeding Rs. 50000 received without consideration by an individual/HUF from any person is subjected to gift tax as income under "other sources". There are exemptions like money received...
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...India's Economic Reforms an Appraisal India's economic reforms began in 1991 when a newly elected Congress government, facing an exceptionally severe balance-of-payments crisis, embarked on a programme of short-term stabilization combined with a longer-term programme of comprehensive structural reforms. Rethinking on economic policy had begun earlier in the mid-1980s by which time the limitations of a development strategy based on import substitution, public sector dominance, and pervasive government control over the private sector had become evident. But the policy response at the time was limited to liberalizing particular aspects of the control system without changing the system itself in any fundamental way. The reforms initiated in 1991 were different precisely because they recognized the need for a system change, involving liberalization of government controls, a larger role for the private sector, and greater integration with the world economy. The broad outline of the reforms was not very different from the reforms undertaken by many developing countries in the 1980s. Where India's reforms differed was in the much more gradualist pace at which they were implemented. The compulsions of democratic politics in a pluralist society made it necessary to evolve a sufficient consensus across disparate (and often very vocal) interests before policy changes could be implemented and this meant that the pace of reforms was often frustratingly slow. Daniel Yergin (1997) captures...
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...controlled by the Bureau of Internal Revenue (Philippines). Taxes in the Philippines range from 5% to 35%[1] Contents [hide] 1 Exceptions 2 Cedula 3 Value Added Taxes (VAT) 4 Excise taxes 5 References Exceptions[edit] 25,000-26,500 [1] for individuals[1] 30,000 Pesos for married couples[1] Exceptions for Small and Medium Enterprises with income of less than 100,000 Pesos Cedula[edit] Cedula is a community tax that is paid annually at the Barangay Hall. It is often rated at 5% of income. Value Added Taxes (VAT)[edit] In the Philippines, the rate of VAT is at 12%. With some additional VAT:[1] Cockpits and Cabarets: 18% Jai-Jalai and racetracks: 30% And with some exceptions:[1] Small Businesses: 10% Not VAT-registered businesses: 3-5% Excise taxes[edit] Alcoholic beverages, tobacco products, jewelry, petroleum products, mining and petroleum taxes, residence taxes, a head tax on immigrants above a certain age and staying beyond a certain period, document stamp taxes, donor (gift) taxes, estate taxes, and capital gains taxes. A document stamp tax is charged on stock certificates, proofs of indebtedness, proofs of ownership, etc., and normally amount to .75% to 1% of the par or face value of the certificate are imposed with excise taxes.[1] References[edit] ^ Jump up to: a b c d e f Encyclopedia of Nations "Philippines -...
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...Report on Summer Placement Conducted at GENO PHARMACEUTICALS LTD Pharmaceutical Complex Tivim Industrial Estate, P.O. Karaswada, Mapusa, Goa By TRAZEL DIAS Roll No. 1332 St. Xaviers College, Mapusa – Goa Stores Learnings & Research. The stores department at Geno Pharmacueticals is headed by Mr.Sunil Azgaonkar. He takes care of the over all activities of this department. Mr.Sunil Azgaonkar was very kind in sharing his knowledge with me and also in givingme an overview of how the stores department at Geno Pharmacueticals functions. The stores department is the heart of any organisation. It is where all the issuing and receiving takes place. The marketing department first gets the orders that are generated .i.e is how much sale has to be made. Later on the production planning control department does the job of finalising how much has to be produced, they have something called a production programme which helps them know according the amount of tablets,capsules,liquids or ointments that have to be produced. Next step is where the stores department issues an indent to the purchase department to make the necessary purchases of the raw materials required for production. The purchase department inturn will approach approved suppliers or vendors and place a purchase order. Once the materials are received from the approved vendore and suppliers they are sent to a room called the ‘re-dusting’ room. In this room all the materials are cleansed for eg: if...
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...EXCISE DUTY Central excise duty is an indirect tax which is charged on such goods that are manufactured in India and are meant for domestic consumption. The taxable fact is "manufacture" and the liability of central excise duty arises as soon as the goods are manufactured. The tax is on manufacturing, it is paid by a manufacturer, which is then passed on to the customer. The term "excisable goods" means the goods which are specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act 1985. The term "manufacture" refers to any process • Related or supplementary to the combination of a manufactured product. • Which is specified in relation to any goods in the Section or Chapter Notes of the First Schedule to the Central Excise Tariff Act 1985 as amounting to manufacture or • Which in relation to the goods specified in the Third Schedule involves packing or repacking of such goods in a unit container or labeling or re-labeling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer. Three different types of Central Excise Duties exist in India. They are listed below: Basic Excise Duty In India Excise Duty, imposed under section 3 of the ‘Central Excises and Salt Act’ of1944 on all excisable goods other than salt produced or manufactured in India, at the rates set forth in the schedule to the Central Excise...
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...Assignment On Impact of Indirect Tax in the Economic Growth of Bangladesh Submitted to Shish Haider Chowdhury Course Instructor Auditing & Taxation Submitted By Sudipta Paul Class ID-1577 21st Batch Date of Submission 07.09.2014 Institute of Business Administration Jahangirnagar University Indirect tax: An indirect tax (such as sales tax, a specific tax, value added tax (VAT), or goods and services tax (GST)) is a tax collected by an intermediary (such as a retail store) from the person who bears the ultimate economic burden of the tax (such as the consumer). The intermediary later files a tax return and forwards the tax proceeds to government with the return. In this sense, the term indirect tax is contrasted with a direct tax which is collected directly by government from the persons (legal or natural) on which it is imposed. Some commentators have argued that "a direct tax is one that cannot be shifted by the taxpayer to someone else, whereas an indirect tax can be. An indirect tax may increase the price of a good so that consumers are actually paying the tax by paying more for the products.[2] Examples would be fuell, liquor, and cigarette taxes. An excise duty on motor cars is paid in the first instance by the manufacturer of the cars; ultimately the manufacturer transfers the burden of this duty to the buyer of the car in form of a higher price. Thus, an indirect tax is such which can be shifted or passed...
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...attract more entrepreneurs, due to various restrictions imposed under various regulations. The initiatives taken by the government to undo such restrictive measures started yielding results by consistent growth in number of units operating under this scheme. When compared with the performance of government sponsored EPZ/FTZ schemes, the EOU sector did show commendable growth. In spite of this, the government, instead of encouraging the units to start EOUs, offered special schemes to rehabilitate or re-vitalize the existing EPZ/FTZ units by converting them into SEZ units. The new SEZs approved will take another 3-4 years to commence their full-fledged operations. The Government is giving subsidies for infrastructure development and income tax benefits and many more fiscal and tariff support for such units in the hope to achieve the objectives of Foreign Trade Policy after 4-5 years. If the same facilities are extended to EOU sector, while keeping them under the identical restrictive business environment like SEZ units, the performance of EOU sector will show quantum...
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...is Tax? A fee charged ("levied") by a government on a product, income, or activity. A means by which governments finance their expenditure by imposing charges on citizens and entities. Governments use taxation to encourage or discourage certain economic decisions. For example, reduction in taxable personal (or household) income by the amount paid as interest on home mortgage loans results in greater construction activity, and generates more jobs. If tax is levied directly on personal or corporate income, then it is a direct tax. If tax is levied on the price of a good or service, then it is called an indirect tax. The purpose of taxation is to finance government expenditure. One of the most important uses of taxes is to finance public goods and services, such as street lighting and street cleaning. Since public goods and services do not allow a non-payer to be excluded, or allow exclusion by a consumer, there cannot be a market in the good or service, and so they need to be provided by the government or a quasi-government agency, which tend to finance themselves largely through taxes. What is VAT (Value Added Tax)? VAT was introduced into the Indian taxation system from 1st April 2005. This is a kind of consumption tax which gets imposed on products or services at different stages of manufacturing and at final sale. This is a multi-point process of levying tax on value addition which is collected at different stages of sale with a provision for set-off for tax paid...
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