...evolve as various stakeholders and experts are consulted. 1. 1. Table of Contents Preface ...................................................................................................................................................... 1 Introduction ................................................................................................................................... 2 1.1 1.2 The merits of GST ................................................................................................................................ 2 Urgency .................................................................................................................................................... 2 Desirable features of Goods & Service Tax Network (GSTN)........................................... 3 Stakeholders .......................................................................................................................................... 4 Workflows ............................................................................................................................................... 5 A common GST portal ....................................................................................................................... 6 Basic solution architecture ............................................................................................................. 7 Information...
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...GROSS AND SERVICES TAX GST is an assumption tax charged on a wide range of domestic and international products, good and services. It’s a board-based of tax imposed on every level of a product from raw materials all the way to finished good. The implement of the GST is to substitute the sales and services tax the country of several decade. However, there are some goods and services will be exempt from GST which is a basic food items (rice, sugar, salt, flour, cooking oil, spices, salted fish, cencalok, pickled, shrimp paste), water supply pipes and 200 the first units of electricity per month for consumers, the services provided by the government (issuance of passports, health services, learning in schools), transportation services (bus, rail, LRT, taxi, ferry, boat, highway tolls), sale and rental of residential and some selected financial services. In my opinion, I think GST can educate consumers to become more prudent. If the user does not want to pay more GST then limit expenditure or buy only things that they really need only. GST is based on consumption tax where the more you wear or buy the more you pay. People are likely to be used more. So this can contribute to the national income that could eventually give benefit to all people. In addition, GST rate is lower (6%) compared to sales and service tax (SST) at the rate of 10% and 6%. SST is a double tax, but GST is a tax system on goods and services. Under the SST users had to pay a higher price because the...
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...What is GST? Goods and Services Tax is a comprehensive tax levy on manufacture, sale and consumption of goods and services at a national level. Through a tax credit mechanism, this tax is collected on value-added goods and services at each stage of sale or purchase in the supply chain .The system allows the set-off of GST paid on the procurement of goods and services against the GST which is payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in the supply chain. What are the benefits of GST? 1. Credit Scheme: GST will be levied on supply of goods and services and the supplier will be allowed credit for the GST paid on purchases. The credit would be seamless except that the credit of CGST paid will not be allowed for set-off against SGST payable and vice versa. This will eliminate the he cascading effect and reduce the price. 2. Subsuming all Taxes: GST should subsume all major indirect taxes levied by the Central Government i.e. central excise, customs and service tax and majority of the taxes levied by the State Government i.e. VAT, luxury tax, entertainment tax, etc. In this regard, tax on petroleum products and alcohol are intended to be kept either outside or tax additionally under GST. 3. Export-oriented industries -internationally more competitive as entire taxes in supply chain would be refunded (zero-rating) 4. Import-substituting industries would also become competitive as prices of Indian ...
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...Goods and Services Tax-What it is! Folks! Goods and Services Taxes or simply put GST is believed to solve many issues when it comes to the taxation policy in India. Before we jump into the technicalities of GST, let me set some pretext for those who have little idea about this topic. Our country, India, is a land of Taxes! Currently, we have numerous taxes like Sales Tax, Value Added Tax, Service Tax, Income Tax, Central Excise, Customs, Countervailing Duty, Special Additional Duty and what not. As a manufacturer, one need to pay these many taxes to government and the total amount that goes into taxes is fairly large. The reason being, the manufactured goods has to go through several stages (intermediate parties) before it finally reaches to the customer. And, the taxes are levied on the goods at each stage. That means same tax is levied on the product more that once before it reaches to the end customer. We call this scenario-Tax on Tax. In 2004, the government came up with an idea of VAT where in this problem of tax on tax was taken care of. In VAT the dealer only adds the tax on the value added on goods by him and does not pay the taxes on the values added on the goods by previous customers. But, as you can figure it out, VAT deals with the taxes only on goods. What about tax on services? Further, the VAT was implemented on the state level. Centre continued to charge the central taxes on the goods and services. To solve this problem, government came up with the idea were...
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...Assignment on LR Process (10 Marks) 1. Categorizing your papers This should be a list of papers that have shaped your thinking so far. You may wish to highlight those that are ‘core’ and those that are more ‘peripheral’ [recognising that what is deemed core and periphery may change over time]. State a list of 15 papers related to your work. |Core papers |Peripheral papers | | | | | | | | | | | | | | | | On what criteria have you decided that a paper is core/periphery. Core papers are: • Texts that acknowledge and discuss the problem statements of your research and discuss the reality of the related situation. • Texts that reflect on the link between areas of focus in research • Texts that discuss...
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...Transaction Services • • TS Insights List bullet List bullet Sub bullet evaluation of the other two sources of taxable income ― Vol. 3 Heading 2 Financial reporting in an uncertain economy A closer look at income tax valuation allowances October 2009 Additional text goes here. Heading 3 Additional text goes here. Notwithstanding early signs that the global recession may be waning, the uncertain economic future continues to constrict corporate America. As companies continue to incur losses, focus has heightened on income tax valuation allowance assessments by companies and their auditors, as well as the Securities and Exchange Commission staff, through the issuance of comment letters. Specifically, much of this focus is on whether deferred tax assets reflected on corporate balance sheets will ultimately be realized. When a deferred tax asset is not fully realizable, a valuation allowance must be established against the deferred tax asset to reduce it to a net amount that is realizable. The related expense is generally reflected in the income statement as an income tax expense. A clear understanding of the judgmental nature of valuation allowance accounting models is critical in addressing this issue. The need for judgment The accounting requirements for deferred tax assets are set out in ASC 740, "Income Taxes," which establishes a "more likely than not" threshold for recognizing deferred tax assets. The interpretation of this criteria has historically...
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...What is GST? The Goods and service tax is an initiative towards a reform in which this tax will replace all the indirect taxes in the Centre as well as the State, which can be levied in case of a sale being made or a service being provided. It is especially necessary in the current scenario, due to the degrading effects of the present tax system of CENVAT and State Vat system and the other complexities that prevail in the tax system of India. Some of the taxes that will be replaced under the central taxes are Service Tax, Surcharges, Central Excise Duty, Customs Duties and other Excise Duties. Some of the taxes that will be replaced under the state taxes are Luxury Tax, Entertainment Taxes, Tax on gambling and betting, Lottery Taxes, surcharges etc., as long as they are related to entry tax and the supply of goods and services. Due to reasons, which are social, environment related as well as those related to import dependence, certain products like high-speed diesel, alcohol (human consumption) is not included. Also, the direct taxes will be exempted from the GST, including capital gains, corporate and income tax. To better understand GST, consider the following: There exists a manufacturer, retailer and dealer (wholesaler). Goods and Service Tax is 10%. Now assume that the manufacturer buys the raw materials worth Rs 100 for Rs 140. Therefore, the total GST he will pay is Rs 4 by getting a tax credit of Rs 10 on the raw materials he had purchased. Now, the...
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...concerning the individuals and sole-proprietor business have been introduced in 2015 budget. The first issue is about individual tax. The first change is that the income tax rate is reduced by 1 to 3% for resident individuals depending on different levels of chargeable income since Year of Assessment (YA) 2015 (KPMG, 2014). This results in that tax payers with family and income of Rm4,000 per month will not have tax liability. Besides, the income tax rate for non-resident individuals is reduced by 1% from 26% to 25% (KPMG, 2014) Chargeable Income(RM) | Current Tax Rate (%) | Proposed Tax Rate (%) | Reduction(%) | 1—5,000 | 0 | 0 | - | 5,000—20,000 | 2 | 1 | 1 | 20,001—35,000 | 6 | 5 | 1 | 35,001—50,000 | 11 | 10 | 1 | 50,001—70,000 | 19 | 16 | 3 | 70,001—100,000 | 24 | 21 | 3 | 100,001—250,000 | 26 | 24 | 2 | 250,001—400,000 | 26 | 24.5 | 1.5 | Exceeding 400,000 | 26 | 25 | 1 | This tax brackets illustrates the chargeable income is raised from RM100,000 to RM400,000 and the rate for chargeable income band exceeding RM100,000 is structured into three bands with reduced rates of 24%, 24.5% and 25%, which results in existing taxpayers receiving a saving of at least 5.3% (Reuters, 2014). It is significant to note that the deduction in tax rates is expected to provide tax saving for individuals This significant change in income tax rate aims to increase the disposable income of individuals and in line with GST implementation. Secondly, Malaysian government also...
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...1.Introduction Billed as India’s biggest indirect tax reform since independence- Goods and Service Tax once introduced has the potential to boost economic growth and according to analyst add around 0.9%-1.5% to our GDP. GST has been implemented by over 150 countries owing to its transparency and revenue increasing capabilities. The idea of GST is almost a decade old and was first proposed by a committee chaired by tax expert Vijay Kelkar in March 2004 after much deliberations and delays P.Chidambaram and Pranab Mukherjee formally introduced the legislation in Lok Sabha in March 2011. Thereafter the Bill has been stuck up in a quagmire of political opportunism and delay. The law, if finally passed by both houses of parliament will come into force from April 2016. 2.Nuanced understanding of GST As opposed to a single comprehensive tax which is a global norm India has decided to adopt the dual GST model where there are two components- central GST (CGST) and a state GST (SGST) hence the Centre and state will legislate and administer the taxes concurrently. GST will subsume various disparate taxes viz. Central excise duty, VAT, Service tax and also other taxes like luxury tax, entry tax thereby reducing the compliance cost and at the same time simplifying the tax structure. GST is primarily a destination based tax and requires that the SGST accrues to the destination state this caused dissent among some predominantly manufacturing states like Maharashtra, Gujarat and Tamil...
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...A CUSTOMER DEFECTION ANALYSIS FOR: LIBERTY TAX SERVICE Prepared By Alexandra Burge Teale Hocker Anna Schoonover Andy Ward Presented to Dr. James Walker for Strategic Marketing February 27, 2013 TABLE OF CONTENTS TABLE OF CONTENTS i EXECUTIVE SUMMARY ii INTRODUCTION 1 Background Information 1 Literature Review 2 METHOD 3 RESULTS 4 RECCOMENDATIONS 5 CONCLUSION 7 ACKNOWLEDGEMENTS 8 WORKS CITED 9 APPENDIX A 10 APPENDIX B 11 EXECUTIVE SUMMARY A customer defection analysis was carried out for Liberty Tax Service, referred to as Liberty Tax, to determine why customers had defected and provide recommendations on how to retain current and future customers. The analysis was based upon a survey performed on 20 of the 280 customers who had Liberty Tax perform their tax services in 2012 but did not return in 2013. The results of the analysis were divided into controllable, and uncontrollable reasons that customers defect. Controllable reasons found included poor customer service (10%), speed of service (30%) and opting for an online or do-it-yourself tax service (35%). An uncontrollable reason was that customers were moving from the area (25%). The analysis showed that if Liberty Tax retained all the customers who defected in the last year for controllable reasons they would increase revenues by $50,400.00. Finally, four recommendations to help improve retention and capture the lost revenues are given. It is recommended that employees receive more...
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...Main Features of Goods and Services Tax (GST) Our Prime Minister, Datuk Seri Najib Razak announced the introduction of the Goods and Services Tax (GST) in Budget 2014 on 25th October 2013. GST will be effective on April, 2015 and replace the current sales and services tax. GST also known as value-added concept, which is multi-stage tax. GST will be charged on all taxable supplies of goods and services trading in Malaysia by a taxable resident. GST is tax neutral to businesses. GST charged to all intermediaries in the production and distribution chain. Businesses which have registered for GST are allowed to claim input tax credit. GST also is a broad-based tax since all supplies of goods and services will involve GST. Exemption is given to zero-rated supplies and exempt supplies, or those fall within particular special schemes. Besides that, imported services will be subject to GST. Standard-rated Supplies Standard rate supply those goods and services that are charged GST at a fixed rate. GST is collected by the seller and paid back to government. They can recover back the difference between the input and output tax when their input tax is higher than their output tax. Zero-rated Supplies Businesses can claim input tax credit in purchasing these supplies. Customer will be charged at zero rate of GST. Most basic food items such as meats, fish, cooking oil, rice, sugar, salt, vegetables and first 200 units of electricity supply used monthly for domestic consumers...
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...Vol. 9, No. 11; 2013 ISSN 1911-2017 E-ISSN 1911-2025 Published by Canadian Center of Science and Education Elements of Compliance Costs: Lesson from Malaysian Companies towards Goods and Services Tax (GST) Mohd Rizal Palil1, Rosiati Ramli1, Ahmad Fariq Mustapha1 & Norul Syuhada Abu Hassan1 1 School of Accounting, University Kebangsaan Malaysia, Malaysia Correspondence: Mohd Rizal Palil, School of Accounting, Faculty of Economics and Management, University Kebangsaan Malaysia, 43600 Bangi, Selangor, Malaysia. E-mail: mr_palil@ukm.my Received: May 6, 2013 Accepted: June 20, 2013 Online Published: August 30, 2013 doi:10.5539/ass.v9n11p135 Abstract URL: http://dx.doi.org/10.5539/ass.v9n11p135 Various parties including academics, professionals and the society (the potential GST payers) are arguing about the introduction of GST in Malaysia. Goods and Services Tax (GST) or Value Added Tax (VAT) is a consumption tax imposed on the sale of goods and services. The Malaysian government introduce this potential tax mechanism, in order to increase the existing tax bracket and replacing the long-implemented service and sales taxes. With the introduction of GST, the Malaysian government felt it would provide them with the prospect to reduce the rates of individual and corporate income tax. However, do all companies particularly small and medium enterprises (Companies) ready to adopt the systems efficiently? If they could adopt the system, how much their compliance costs involved...
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...AC 553 YOU DECIDE WEEK 4 BEM TAX SERVICES MEMO TO JOHN AND JANE To purchase this visit here: http://www.nerdypupil.com/product/ac-553-you-decide-week-4-bem-tax-services-memo/ Contact us at: nerdypupil@gmail.com AC 553 YOU DECIDE WEEK 4 BEM TAX SERVICES MEMO TO JOHN AND JANE AC 553 You Decide Week 4 BEM Tax Services BEM Tax Services Memo To: John and Jane Smith From: Benedict Mitchell Date: [ 10/7/2011 ] Re: Tax Issues Upon reviewing the information you submitted to me concerning your taxes, they were several issues which I observed. First I will like to discuss John’s issues: * The $300,000 will have to be treated as ordinary employment income, subject to federal and state income taxes. * The $25,000 will have to be treated as an expense. * I have determined that you have to account for all qualified business expenses and only net income will be taxable. AC 553 You Decide Week 4 BEM Tax will provide a detailed memo that has been written to John and Jane Smith regarding the several issues of taxation. AC 553 YOU DECIDE WEEK 4 BEM TAX SERVICES MEMO TO JOHN AND JANE To purchase this visit here: http://www.nerdypupil.com/product/ac-553-you-decide-week-4-bem-tax-services-memo/ Contact us at: nerdypupil@gmail.com AC 553 YOU DECIDE WEEK 4 BEM TAX SERVICES MEMO TO JOHN AND JANE AC 553 You Decide Week 4 BEM Tax Services BEM Tax Services Memo To: John and Jane Smith From: Benedict Mitchell Date: [ 10/7/2011 ] Re: Tax Issues Upon reviewing the information...
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...[pic] Consumer Behavior Outline for Exotic Smokes Cigarette Company The IMC Plan Project for On the Mark Accounting and Tax Service, LLC means starting at zero with the IMC campaign planning. The CEO of the company knows that acquiring and retaining clients is an ongoing process, and now is the time to complete an analysis to determine what, if any, changes need to be made to the marketing communication efforts. There are many reasons a formal campaign plan should be created: it will provide the CEO a sensible process to identify the most important exchange issues on which the company should focus; it notifies everyone involved with MC, what is expected of them; it will assist in guaranteeing the MC effort is incorporated and concentrated on the most important message issues; these plans inform top management personnel how and why the funding will be spent and what the company will gain in return; and the plan will provide the CEO and marketing management a criterion against which development and final results can be measured (Duncan, 2005, pp. 170-171). Executive SUMMARY to: Mike Yesner FROM: REBECCA BRYSON SUBJECT: IMC PLAN PROJECT DATE: 6/11/2013 CC: Purpose and Scope of Document The purpose of this document is to introduce an IMC Campaign Plan to the board of directors at On the Mark Accounting and Tax Service, LLC. First, marketing managers must identify target audiences; second, the CEO and management team must analyze the SWOTs of the...
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...Pro Staffing Research for Outsourcing Payroll and Tax Services 03/15/2014 Table of Contents Project Scope 4 Requirements 4 Procurement Advantages 5 Savings Analysis 5 Procurement Disadvantages 6 Risks 6 Scoring Matrix for Procurement Proposals 8 Contractual Analysis 12 Considerations 12 Proposal Information 12 Legal Compliance Subjects 12 Proposal Questionnaire 12 Instructions to Proposers 13 Project Scope Pro Staffing research of outsourcing payroll and tax responsibilities versus in-house or new software package to evaluate which process will better meet the needs of corporation in both cost and quality of services. The analysis shows the cost savings for the procurement average 31% less than in-house management either by current processes or new software. Risk/ liability for Federal Tax withholding and reports is moved to the vendor. Requirements The solution needs to provide minimal 1. Direct deposit or mail for employees and contractual workers regular payroll, bonus pay, and expense checks 2. Handle workers compensation payment 3. Payroll withholding 4. Payroll tax management 5. Knowledge of international payments to employees or contractors 6. Online payroll management by Pro Staffing 7. Web access with required registration access for previous W2 and payroll check information for up to five years 8. Documents should be printable or delivery by mail 9. Strict documented protocol...
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