Input tax credit – apportionment & blocked creditKISHAN KESHRI
This document discusses input tax credit under the GST system in India. It covers what input tax credit is, who is eligible to claim it, how businesses can claim it, and conditions for availing it. It also discusses apportionment of credit on inputs and input services, as well as blocked credits in certain cases like motor vehicles, food and beverages, membership fees, and property construction. Businesses must follow rules around credit apportionment and blocked credits to properly claim input tax credit.
This document provides an overview of value added tax (VAT) including:
1. VAT is an indirect tax assessed on the value added to goods and services at each stage of production and distribution. Over 130 countries have introduced VAT.
2. VAT was introduced in India in 2005 and is administered by the government revenue authority. It is a multi-stage tax collected fractionally at each stage of production/distribution.
3. Advantages of VAT include increased tax base and revenue, transparency, avoidance of double taxation, coordination with income tax, and simplification compared to other tax systems.
Supply under GST (goods and services tax)Aashi90100
This document provides definitions and explanations of key terms under the Goods and Services Tax (GST) in India such as goods, services, taxable person, supplier, recipient, location of supply, and place of business. It explains concepts like input service distributor, usual place of residence, principal place of business, and fixed establishment. The document aims to outline the scope and coverage of entities, transactions, and locations that would be subject to GST in India.
This document provides an overview of the Goods and Services Tax (GST) in India. It defines GST as a comprehensive tax on the manufacture, sale, and consumption of goods and services applied at the national level. The document discusses the need for GST to replace existing multiple tax structures and integrate various taxes to allow for full input tax credits. It outlines the justification for GST at both the central and state levels. The document also covers the key features and benefits of GST, including the types of taxes subsumed under GST, registration requirements, taxable supplies, input tax credits, and returns.
Central Sales Tax (CST) is a tax levied by the Central Government of India on the inter-state sale of goods between Indian states, with various forms like Form C and Form E used to document inter-state sales and claim lower CST rates; the tax collected is given to the state where the goods were sold. Certain goods like cereals, coal, and sugar are considered "declared goods" subject to lower CST rates compared to other goods.
The document provides information on supply under GST including:
- Supply is defined broadly under GST and includes all forms of supply of goods/services for consideration including sale, transfer, barter etc.
- Certain activities such as permanent transfer of business assets are treated as supply even without consideration.
- Schedule II lists various transactions that are treated as supply of goods or services like renting of property, transfer of business assets etc.
- Time of supply determines when the tax liability arises and this is the earliest date among invoice issue, removal of goods or receipt of payment.
This document discusses Goods and Services Tax (GST) in India. It provides an introduction to GST, defining it as an indirect tax on the supply of goods and services that replaced multiple taxes. The document outlines some key advantages of GST, including creating a single market, reducing corruption, and increasing GDP. It also notes some disadvantages such as dual control by central and state governments and potential loss of revenue for some states.
Input tax credit – apportionment & blocked creditKISHAN KESHRI
This document discusses input tax credit under the GST system in India. It covers what input tax credit is, who is eligible to claim it, how businesses can claim it, and conditions for availing it. It also discusses apportionment of credit on inputs and input services, as well as blocked credits in certain cases like motor vehicles, food and beverages, membership fees, and property construction. Businesses must follow rules around credit apportionment and blocked credits to properly claim input tax credit.
This document provides an overview of value added tax (VAT) including:
1. VAT is an indirect tax assessed on the value added to goods and services at each stage of production and distribution. Over 130 countries have introduced VAT.
2. VAT was introduced in India in 2005 and is administered by the government revenue authority. It is a multi-stage tax collected fractionally at each stage of production/distribution.
3. Advantages of VAT include increased tax base and revenue, transparency, avoidance of double taxation, coordination with income tax, and simplification compared to other tax systems.
Supply under GST (goods and services tax)Aashi90100
This document provides definitions and explanations of key terms under the Goods and Services Tax (GST) in India such as goods, services, taxable person, supplier, recipient, location of supply, and place of business. It explains concepts like input service distributor, usual place of residence, principal place of business, and fixed establishment. The document aims to outline the scope and coverage of entities, transactions, and locations that would be subject to GST in India.
This document provides an overview of the Goods and Services Tax (GST) in India. It defines GST as a comprehensive tax on the manufacture, sale, and consumption of goods and services applied at the national level. The document discusses the need for GST to replace existing multiple tax structures and integrate various taxes to allow for full input tax credits. It outlines the justification for GST at both the central and state levels. The document also covers the key features and benefits of GST, including the types of taxes subsumed under GST, registration requirements, taxable supplies, input tax credits, and returns.
Central Sales Tax (CST) is a tax levied by the Central Government of India on the inter-state sale of goods between Indian states, with various forms like Form C and Form E used to document inter-state sales and claim lower CST rates; the tax collected is given to the state where the goods were sold. Certain goods like cereals, coal, and sugar are considered "declared goods" subject to lower CST rates compared to other goods.
The document provides information on supply under GST including:
- Supply is defined broadly under GST and includes all forms of supply of goods/services for consideration including sale, transfer, barter etc.
- Certain activities such as permanent transfer of business assets are treated as supply even without consideration.
- Schedule II lists various transactions that are treated as supply of goods or services like renting of property, transfer of business assets etc.
- Time of supply determines when the tax liability arises and this is the earliest date among invoice issue, removal of goods or receipt of payment.
This document discusses Goods and Services Tax (GST) in India. It provides an introduction to GST, defining it as an indirect tax on the supply of goods and services that replaced multiple taxes. The document outlines some key advantages of GST, including creating a single market, reducing corruption, and increasing GDP. It also notes some disadvantages such as dual control by central and state governments and potential loss of revenue for some states.
This document provides an overview of input tax credit under the GST Act. It defines input tax and input tax credit, outlines the eligibility and conditions for claiming ITC, and discusses the time limit. It also covers apportionment of credit and blocked credits, availability of credit in special circumstances like new registration or exempt supplies becoming taxable. The document discusses ITC on capital goods, distribution of credit by an Input Service Distributor, and recovery of excess credit distributed. Overall it serves as a comprehensive guide to the key aspects of input tax credit under Indian GST law.
This document provides an overview of the Goods and Services Tax (GST) that was implemented in India in July 2017. It defines GST as a comprehensive indirect tax on the supply of goods and services throughout India. The key highlights include:
- GST is a dual GST model with taxation powers shared between the central and state governments.
- It subsumes multiple taxes into a single tax to reduce the cascading effect of taxes and simplify compliance.
- Tax rates under GST range from 0-28% depending on the type of goods or services.
- Registration and returns involve a unified process with the central and state tax authorities for simplification.
- Implementation challenges include transitioning
The document discusses the meaning and calculation of capital gains under the Income Tax Act.
Some key points:
- Capital gains arise from the profit earned on the transfer of a capital asset like property, shares, etc.
- It is taxed under a separate head called "capital gains" and is deemed as income of the year in which the transfer took place.
- Capital gains are classified as short-term or long-term depending on the period of holding. Assets held for less than 36 months for immovable property and 12 months for others attract short-term capital gains tax.
- The capital gain amount is calculated by deducting the indexed cost of acquisition and improvement from the sale consideration. Various
The document summarizes key income tax implications in India for the financial year 2022-23 based on amendments made in the Finance Act 2022.
It outlines that income tax rates, health and education cess rates, and surcharge rates remain unchanged for FY2022-23. It introduces provisions for taxation of virtual digital assets at 30% and mandatory TDS of 1% on transfer of such assets. It also allows individuals to file an updated income tax return within 24 months of the assessment year on payment of additional tax. The document provides details of various deductions available under Chapter VI-A of the Income Tax Act.
Goods and Services Tax (GST) is an indirect tax on the sale, consumption, and manufacturing of goods and services throughout India. It aims to eliminate multiple indirect taxes and create a single, unified Indian market. Unlike other countries, Indian GST consists of three taxes - Central GST, State GST, and Integrated GST. India follows a dual GST model where both central and state governments levy GST concurrently on the same base of goods and services.
The document provides an overview of India's tax system. It discusses direct taxes such as income tax, wealth tax, capital gains tax, and corporate tax. It also discusses indirect taxes including service tax, customs duty, excise duty, sales tax, and security transaction tax. It notes that the tax system is complex with defects including limited direct taxation coverage, reliance on indirect taxes, inequitable nature, and uncertainty in tax rates. The document then introduces the proposed Goods and Services Tax (GST) as a comprehensive tax that will replace existing taxes and have benefits such as removing the cascading effect of taxes and providing a more uniform, transparent tax regime.
Objectives & Agenda :
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July 2017 which was one of the most important reforms in the Indian Economy. Before levying any tax, taxable events needs to be ascertained. Under GST, taxable event arises on "supply of goods or services or both". In this webinar, we shall analyse and understand the provisions related to definition of supply.
1. The document discusses various key concepts related to taxation in India such as direct taxes, indirect taxes, types of taxes including income tax, duty, cess, and surcharge. It provides definitions and explanations of these tax terms.
2. The key highlights are that direct taxes are imposed directly on income and wealth while indirect taxes are imposed on goods and services. Income tax is governed by the Income Tax Act of 1961 which is amended every year by the Finance Act.
3. The document also explains the difference between direct and indirect taxes, taxation system in India, types of taxation including progressive, regressive and proportional, and income tax computation process.
The document provides details about the Goods and Services Tax Network (GSTN) in India. It discusses that GSTN is a non-profit organization that manages the IT system and portal for GST. Private players own 51% of GSTN shares while the rest are owned by the central and state governments. The GSTN contract was awarded to Infosys to develop the system. Several issues have been faced with the GSTN portal including crashes, erroneous penalties, and lack of an offline filing tool. Infosys has received criticism for the technical glitches but has responded that the large scale of the project and rapid policy changes have contributed to problems. Deadlines for filing July and August GST returns were
OBJECTIVE
Import of all kinds of goods and on the export of goods on certain situations attracts customs duty. The Customs Act,1962 contains provisions which govern the levy of customs duty. In this webinar, we shall understand the types customs duty levied and the duty drawback allowed under the customs law.
The document discusses customs duties in India. It outlines that [1] customs duties are levied on imports and exports according to the Customs Act of 1962 and Customs Tariff Act of 1975, [2] basic customs duty is charged on all imported goods at rates specified in the Customs Tariff Act, and [3] additional duties include an additional countervailing duty equal to internal excise duties and an education cess.
This PPT explains all about the latest amendments in the GST regime. Under, valuation of supply, this topic covers the time of supply which is considered as as second aspect after place of supply.
OBJECTIVE
Under GST, the supplier of goods or services is liable to pay the tax to the Government. However, under the reverse charge mechanism (RCM), the liability to pay GST is cast on the recipient of the goods or services. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. In this webinar, we shall understand the applicability and provisions of RCM under GST.
The sales tax structure has become simple & transparent after implementation of VAT system in India, also helping in avoiding cascading effect of tax. Summarized provisions are provided in attached PPT..
The Central Sales Tax Act provides principles for determining inter-state sales and levies tax on sales occurring during inter-state trade. It aims to regulate state sales taxes on declared goods moving between states. Only movable property is considered goods under the Act. A sale involves the transfer of property in goods for consideration, excluding transfers like mortgages or pledges where ownership is not passed. Various transactions like hire purchases or barter trades are included in the definition of sale.
This document discusses various GST concepts related to invoicing such as tax invoices, debit notes, credit notes, and bills of supply. It provides details on:
- When tax invoices must be issued for goods and services, including for continuous supplies.
- The mandatory contents of tax invoices and bills of supply.
- How invoices must be issued, including requirements for original, duplicate, and triplicate copies.
- Situations where delivery challans can be issued instead of invoices when transporting goods.
- What debit notes and credit notes are used for and examples of when they would be issued to increase or decrease the tax amount on a previous invoice.
The document discusses the residential status and tax liability of individuals and entities in India. It defines the basic conditions to determine if a person is a resident, ordinary resident, or non-resident based on the number of days spent in India. An ordinary resident's total income and tax liability is the highest, including both Indian and foreign income. A non-resident's total income and tax liability is based only on Indian income. The residential status of entities like HUF, companies, firms, and AOP is also determined based on the control and management of their affairs being within or outside of India.
The document defines key terms related to income tax in India such as assessee, person, assessment year, previous year, types of income, and tax rates. It discusses how taxable income is calculated based on income from different sources such as salary, house property, business, capital gains, and other sources. It also outlines the incidence of tax for residents and non-residents depending on where the income is earned and received.
The document discusses Value Added Tax (VAT) including:
- VAT is a multi-point sales tax levied on the value added at each stage of production and distribution. It aims to tax value addition rather than turnover.
- VAT was first introduced in France in 1954 and has since been adopted by many countries including India where it was introduced in 2005.
- Under VAT, tax is collected in installments at each stage of production/distribution rather than just at the final retail point like under sales tax. This avoids cascading of taxes.
This document provides an overview of value added tax (VAT) in India, including:
- VAT is levied at multiple stages of production and allows producers to claim credits for taxes paid on inputs.
- VAT is preferred over sales tax as it generates more revenue, encourages compliance, and minimizes tax cascading through credits.
- VAT differs from sales tax in that the tax burden is shared across all stages of production rather than a single stage.
- Goods covered under VAT include most items, while some essentials may be exempted or taxed at reduced rates.
- Registered dealers with over 500,000 rupees annual turnover must pay VAT monthly based on returns, with credits for taxes paid
This document provides an overview of input tax credit under the GST Act. It defines input tax and input tax credit, outlines the eligibility and conditions for claiming ITC, and discusses the time limit. It also covers apportionment of credit and blocked credits, availability of credit in special circumstances like new registration or exempt supplies becoming taxable. The document discusses ITC on capital goods, distribution of credit by an Input Service Distributor, and recovery of excess credit distributed. Overall it serves as a comprehensive guide to the key aspects of input tax credit under Indian GST law.
This document provides an overview of the Goods and Services Tax (GST) that was implemented in India in July 2017. It defines GST as a comprehensive indirect tax on the supply of goods and services throughout India. The key highlights include:
- GST is a dual GST model with taxation powers shared between the central and state governments.
- It subsumes multiple taxes into a single tax to reduce the cascading effect of taxes and simplify compliance.
- Tax rates under GST range from 0-28% depending on the type of goods or services.
- Registration and returns involve a unified process with the central and state tax authorities for simplification.
- Implementation challenges include transitioning
The document discusses the meaning and calculation of capital gains under the Income Tax Act.
Some key points:
- Capital gains arise from the profit earned on the transfer of a capital asset like property, shares, etc.
- It is taxed under a separate head called "capital gains" and is deemed as income of the year in which the transfer took place.
- Capital gains are classified as short-term or long-term depending on the period of holding. Assets held for less than 36 months for immovable property and 12 months for others attract short-term capital gains tax.
- The capital gain amount is calculated by deducting the indexed cost of acquisition and improvement from the sale consideration. Various
The document summarizes key income tax implications in India for the financial year 2022-23 based on amendments made in the Finance Act 2022.
It outlines that income tax rates, health and education cess rates, and surcharge rates remain unchanged for FY2022-23. It introduces provisions for taxation of virtual digital assets at 30% and mandatory TDS of 1% on transfer of such assets. It also allows individuals to file an updated income tax return within 24 months of the assessment year on payment of additional tax. The document provides details of various deductions available under Chapter VI-A of the Income Tax Act.
Goods and Services Tax (GST) is an indirect tax on the sale, consumption, and manufacturing of goods and services throughout India. It aims to eliminate multiple indirect taxes and create a single, unified Indian market. Unlike other countries, Indian GST consists of three taxes - Central GST, State GST, and Integrated GST. India follows a dual GST model where both central and state governments levy GST concurrently on the same base of goods and services.
The document provides an overview of India's tax system. It discusses direct taxes such as income tax, wealth tax, capital gains tax, and corporate tax. It also discusses indirect taxes including service tax, customs duty, excise duty, sales tax, and security transaction tax. It notes that the tax system is complex with defects including limited direct taxation coverage, reliance on indirect taxes, inequitable nature, and uncertainty in tax rates. The document then introduces the proposed Goods and Services Tax (GST) as a comprehensive tax that will replace existing taxes and have benefits such as removing the cascading effect of taxes and providing a more uniform, transparent tax regime.
Objectives & Agenda :
Goods and Services Tax (GST) is an Indirect Tax levied in India introduced in July 2017 which was one of the most important reforms in the Indian Economy. Before levying any tax, taxable events needs to be ascertained. Under GST, taxable event arises on "supply of goods or services or both". In this webinar, we shall analyse and understand the provisions related to definition of supply.
1. The document discusses various key concepts related to taxation in India such as direct taxes, indirect taxes, types of taxes including income tax, duty, cess, and surcharge. It provides definitions and explanations of these tax terms.
2. The key highlights are that direct taxes are imposed directly on income and wealth while indirect taxes are imposed on goods and services. Income tax is governed by the Income Tax Act of 1961 which is amended every year by the Finance Act.
3. The document also explains the difference between direct and indirect taxes, taxation system in India, types of taxation including progressive, regressive and proportional, and income tax computation process.
The document provides details about the Goods and Services Tax Network (GSTN) in India. It discusses that GSTN is a non-profit organization that manages the IT system and portal for GST. Private players own 51% of GSTN shares while the rest are owned by the central and state governments. The GSTN contract was awarded to Infosys to develop the system. Several issues have been faced with the GSTN portal including crashes, erroneous penalties, and lack of an offline filing tool. Infosys has received criticism for the technical glitches but has responded that the large scale of the project and rapid policy changes have contributed to problems. Deadlines for filing July and August GST returns were
OBJECTIVE
Import of all kinds of goods and on the export of goods on certain situations attracts customs duty. The Customs Act,1962 contains provisions which govern the levy of customs duty. In this webinar, we shall understand the types customs duty levied and the duty drawback allowed under the customs law.
The document discusses customs duties in India. It outlines that [1] customs duties are levied on imports and exports according to the Customs Act of 1962 and Customs Tariff Act of 1975, [2] basic customs duty is charged on all imported goods at rates specified in the Customs Tariff Act, and [3] additional duties include an additional countervailing duty equal to internal excise duties and an education cess.
This PPT explains all about the latest amendments in the GST regime. Under, valuation of supply, this topic covers the time of supply which is considered as as second aspect after place of supply.
OBJECTIVE
Under GST, the supplier of goods or services is liable to pay the tax to the Government. However, under the reverse charge mechanism (RCM), the liability to pay GST is cast on the recipient of the goods or services. Reverse charge means the liability to pay tax is on the recipient of supply of goods or services instead of the supplier of such goods or services in respect of notified categories of supply. In this webinar, we shall understand the applicability and provisions of RCM under GST.
The sales tax structure has become simple & transparent after implementation of VAT system in India, also helping in avoiding cascading effect of tax. Summarized provisions are provided in attached PPT..
The Central Sales Tax Act provides principles for determining inter-state sales and levies tax on sales occurring during inter-state trade. It aims to regulate state sales taxes on declared goods moving between states. Only movable property is considered goods under the Act. A sale involves the transfer of property in goods for consideration, excluding transfers like mortgages or pledges where ownership is not passed. Various transactions like hire purchases or barter trades are included in the definition of sale.
This document discusses various GST concepts related to invoicing such as tax invoices, debit notes, credit notes, and bills of supply. It provides details on:
- When tax invoices must be issued for goods and services, including for continuous supplies.
- The mandatory contents of tax invoices and bills of supply.
- How invoices must be issued, including requirements for original, duplicate, and triplicate copies.
- Situations where delivery challans can be issued instead of invoices when transporting goods.
- What debit notes and credit notes are used for and examples of when they would be issued to increase or decrease the tax amount on a previous invoice.
The document discusses the residential status and tax liability of individuals and entities in India. It defines the basic conditions to determine if a person is a resident, ordinary resident, or non-resident based on the number of days spent in India. An ordinary resident's total income and tax liability is the highest, including both Indian and foreign income. A non-resident's total income and tax liability is based only on Indian income. The residential status of entities like HUF, companies, firms, and AOP is also determined based on the control and management of their affairs being within or outside of India.
The document defines key terms related to income tax in India such as assessee, person, assessment year, previous year, types of income, and tax rates. It discusses how taxable income is calculated based on income from different sources such as salary, house property, business, capital gains, and other sources. It also outlines the incidence of tax for residents and non-residents depending on where the income is earned and received.
The document discusses Value Added Tax (VAT) including:
- VAT is a multi-point sales tax levied on the value added at each stage of production and distribution. It aims to tax value addition rather than turnover.
- VAT was first introduced in France in 1954 and has since been adopted by many countries including India where it was introduced in 2005.
- Under VAT, tax is collected in installments at each stage of production/distribution rather than just at the final retail point like under sales tax. This avoids cascading of taxes.
This document provides an overview of value added tax (VAT) in India, including:
- VAT is levied at multiple stages of production and allows producers to claim credits for taxes paid on inputs.
- VAT is preferred over sales tax as it generates more revenue, encourages compliance, and minimizes tax cascading through credits.
- VAT differs from sales tax in that the tax burden is shared across all stages of production rather than a single stage.
- Goods covered under VAT include most items, while some essentials may be exempted or taxed at reduced rates.
- Registered dealers with over 500,000 rupees annual turnover must pay VAT monthly based on returns, with credits for taxes paid
The document provides an overview of Value Added Tax (VAT) in India. It explains that VAT is a broad-based tax levied at multiple stages of production, intended as a tax on consumption. It is preferable to sales tax as it generates more revenue, has in-built compliance incentives, and minimizes tax cascading. The key differences between VAT and other taxes like CST are explained. State and central governments gain increased revenue collection under VAT, while industry gains from reduced interactions with tax authorities and lower costs. All dealers with an annual turnover over Rs. 5 lakh must register for VAT.
Value Added Tax (VAT) is a multi-stage tax levied on value addition at each stage of sale. It provides input tax credit which eliminates cascading of taxes and double taxation. VAT aims to prevent trade distortions, ensure equitable tax distribution, and promote transparency through self-assessment. It is calculated using the invoice method, subtraction method, or addition method depending on the variant of VAT. Registered dealers are eligible for input tax credit subject to certain conditions.
VAT is a multi-point tax system applied at each stage of production and distribution to avoid cascading of indirect taxes. It allows tax paid at one stage to be credited at the next stage so only the value added is taxed. VAT reduces discrimination and makes the tax burden more equal while also being simpler to administer through a self-policing system of invoices. Most countries have adopted VAT to reduce prices through a progressive taxation system.
Value Added Tax (VAT) is a multi-point tax collected on the value added at each stage of production and distribution. In India, VAT was introduced in 2005 and is governed by state laws like the West Bengal VAT Act of 2003. Under VAT, a dealer pays tax on sales (output tax) and claims a credit for tax paid on purchases (input tax) in the same tax period, usually a month. This eliminates the cascading effect of taxes being applied to previous taxes. While VAT streamlines taxation, India's federal structure restricts a pure VAT system, with the center and states collecting different taxes.
This document provides information about value-added tax (VAT) in India, including:
1) VAT was introduced in India in 2005 to replace sales taxes and eliminate double taxation. It is now implemented across all Indian states except three.
2) VAT is charged on the value added at each stage of production and distribution. It aims to reduce the cascading effect of taxes.
3) VAT is calculated as the difference between output tax (tax collected on sales) and input tax (tax paid on purchases). Maintaining purchase and sales invoices is important for accurate VAT calculation.
1. The document outlines chapter 2 on taxes and introduces value added tax (VAT). It defines tax, different types of taxes, and explains the concept of VAT.
2. VAT aims to avoid the cascading effect of taxes under a sales tax regime by allowing tax credits for taxes paid on inputs at earlier stages of production. VAT is collected on the total value added at each stage of production rather than on the full sales price.
3. The document provides an example to illustrate how VAT works through the production chain from manufacturer to retailer, showing how the total tax is collected from the consumer while avoiding double taxation of the same value at different stages.
A students presentation on the topic Indirect Taxes by students from College MCS Banting, Selangor, Malaysia for the subject International Business Law.
The document provides an overview of VAT (value added tax) that is expected to be implemented in GCC (Gulf Cooperation Council) states. It discusses that VAT is an indirect tax on consumption applied to most goods and services. It also notes that VAT will be levied on business transactions at each stage of production and distribution and ultimately paid by the end consumer. The document summarizes preparation steps businesses should take for VAT implementation including understanding the impact, identifying a strategy and timeline, and assessing system capabilities.
The document discusses Value Added Tax (VAT) in India. It provides background on VAT, explaining that VAT was introduced in India in 2005 to replace sales tax and address issues like cascading taxes and tax evasion under the previous system. VAT is collected on the value added at each stage of production and distribution. It allows businesses to claim input tax credit for taxes paid on purchases. The key advantages of VAT over the earlier sales tax system are also highlighted, such as eliminating double taxation and making the tax system more transparent.
VAT (value added tax) is a simple, transparent tax collected on the sale of goods throughout the chain of production and distribution. It is intended to replace sales tax in India. VAT is calculated on the value added at each stage, allowing businesses to claim credits for VAT paid on inputs. This avoids taxing the same goods multiple times under sales tax. The key features of VAT include being paid by the consumer at each point of exchange where value is added, charging tax on the difference between output and input prices, and allowing self-assessment of tax through VAT returns.
The document discusses Value Added Tax (VAT) in India. It is levied at each stage of production and distribution, with businesses able to claim credit for taxes paid on purchases. VAT aims to tax value addition at each stage, replacing sales tax. It is seen as more equitable and transparent than previous tax systems. Certain goods are exempted or taxed at special rates under VAT in India.
In conducting their business activities, a taxable person will incur expenses which are subject to VAT. This VAT can be recovered by a taxable person, subject to certain conditions being met. This ensures that VAT will not normally be a cost to such a taxable person. Where the taxable person is not able to recover the VAT incurred in respect of goods or services, the person is, in effect, treated as the end-consumer for those goods or services. The purpose of this chapter is to set out the circumstances in which taxable persons are entitled to recover input tax and the process they must follow to do so.
This document is a project report submitted by Miss Vanita Laxman Kajale to the N.E.S Ratnam College of Arts, Science & Commerce in partial fulfillment of the requirements for a Master's degree in Commerce. The report discusses Value Added Tax (VAT) implementation in the state of Maharashtra, India. It includes an introduction to VAT, details on VAT registration, calculation of tax liability, filing returns and payment procedures, record keeping requirements, and appeals processes in Maharashtra. The project was guided and reviewed by the lecturer Prof. Rajiv Mishra.
This document provides an overview of value-added tax (VAT) in India, including its legislative background and key concepts. VAT is an indirect tax on goods that is imposed on the value added at each stage of production and distribution. India introduced VAT nationwide in 2005 to replace sales tax and address issues like revenue leakage. VAT is administered separately by each state and aims to make taxation more transparent while generating more revenue. The document discusses VAT rates, terminology, objectives, advantages, and disadvantages.
Presentation on updates of VAT in UAE is in line with the various advisories issued by Ministry of Finance along with the expert views. VAT is being implemented in the UAE wef 1st January 2018. Presentation has impact of VAT/ Steps to follow to become VAT compliant/ thresholds for VAT registration with process to be followed.
Correct Method
100
Cost Price
100
4)
4
VAT (4%)
4
Total
104
Total
104
Sales Price
120
Sales Price
120
Output VAT (4%)
4.8
Output VAT (4%)
4.8
Total
124.8
Total
124.8
1. The document discusses India's Value Added Tax (VAT) system, including definitions of key terms like input tax, output tax, and tax invoices. It also describes eligible and ineligible purchases for claiming input tax credit.
VAT is a transaction-based indirect tax imposed on most supplies of goods and services in the UAE. It is charged and collected at each stage of the supply chain by registered businesses, which collect the tax from customers and remit it to the Federal Tax Authority. The standard VAT rate in the UAE is 5%, which is added to the price of goods and services by the seller. Some supplies are zero-rated, meaning no VAT is charged, while others are exempt from VAT altogether.
This ppt is all about data, sources of data and different methods of their collection. In addition, merits and demerits of different methods are also outlined.
This document discusses research problems and types of variables. It begins by outlining the stages of the scientific method and then describes three types of research questions: descriptive, relationship, and difference questions. Next, it covers criteria for selecting a research problem, such as interest, significance, and manageability. The document defines key terms like research problem, variables, and types of variables. It also discusses formulating a well-defined research problem and outlines components of a research problem statement, including delimitations, limitations, and assumptions.
This document discusses research and research methodology. It defines research as a systematic investigation to find answers to a question or solve a problem. Research involves collecting and analyzing data using scientific methods. It begins with identifying a problem or question and develops a research design for systematically investigating the problem. The purpose of research is to enhance knowledge and develop solutions. Good research has key characteristics - it is solution-oriented, logical, objective, empirical, replicable, impartial, systematic, and analyzes data accurately. The methodology explains how the research was conducted systematically.
The document outlines the procedure for Goods and Services Tax (GST) registration in India.
1. It involves declaring PAN, mobile number and email ID, validating these details, and generating a temporary reference number.
2. An application is then filed providing documents, and an acknowledgement is issued upon deposit of tax.
3. The application is verified, and if in order, registration certificate is granted within 3-7 days assigning a GST Identification Number.
The document discusses registration requirements under the Goods and Services Tax (GST) in India. It outlines that registration is mandatory for suppliers above certain turnover thresholds and for certain types of businesses and transactions. There are different types of registrations including compulsory, voluntary, and special provisions for casual or non-resident taxpayers. The key advantages of registration are legal recognition as a supplier, authorization to collect tax, access to input tax credits, and an automated accounting system for taxes.
The document discusses the rationale and benefits of implementing the Goods and Services Tax (GST) in India. It aims to overcome deficiencies in earlier tax laws by creating a common market with uniform tax rates and procedures. This would boost investment, reduce tax evasion, and improve tax compliance. GST benefits various stakeholders by simplifying the tax system, reducing cascading taxes, and mitigating price increases through input tax credits. Key aspects of GST include the types of taxes, governing acts and councils, and recommendations on tax rates, exemptions, and special provisions for certain states. Overall, GST aims to develop a national market, increase exports and revenues, and make the taxation system more transparent.
The document provides an overview of Goods & Services Tax (GST) implemented in India in 2017. It discusses the deficiencies of the previous indirect tax system that GST aimed to address, such as dual levy and multiple registrations. Key aspects of GST covered include the four-tier tax rate structure, input tax credit mechanism, treatment of inter-state supplies, and the major constitutional amendments and legislations passed between 2014-2017 to enable its rollout. Special features of GST highlighted are the single and destination-based tax, subsuming of various central and state taxes, and easier compliance through e-filing of common returns.
This power point is all about highlighting the concept of National Income in the Indian context and various methods for its calculation. Further, various limitations of National Income are also underlined.
The document discusses disaster risk reduction and management in Jammu and Kashmir (J&K), India, with a focus on the 2014 floods. It provides background on disaster risk management concepts and structures in India. It then analyzes the 2014 Kashmir floods that caused widespread damage, discussing the impacts such as major economic losses. While disaster management plans and authorities exist in J&K, the response to the floods showed that early warning systems and enforcement of policies are still lacking. The document concludes with recommendations to strengthen flood preparation, response, and mitigation in J&K through measures like improved infrastructure, warning systems, and community education.
This presentation is all about highlighting present scenario of food security in India and the Issues and challenges it is facing. Furthermore, some of the pragmatic measures have been given so as to make India a food secure nation.
This document summarizes a presentation on disaster risk reduction and management in Jammu and Kashmir (J&K) with a focus on the 2014 floods. It discusses key concepts of disaster risk management and outlines the objectives and methodology of the study. It then provides details on the 2014 Kashmir floods, their impacts, and challenges going forward. The document concludes with recommendations to improve J&K's disaster management system, such as establishing early warning systems, restricting unplanned growth, and introducing modern technologies.
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
May’s reports showed signs of continued economic growth, said Sam Millette, director, fixed income, in his latest Economic Risk Factor Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
The Universal Account Number (UAN) by EPFO centralizes multiple PF accounts, simplifying management for Indian employees. It streamlines PF transfers, withdrawals, and KYC updates, providing transparency and reducing employer dependency. Despite challenges like digital literacy and internet access, UAN is vital for financial empowerment and efficient provident fund management in today's digital age.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Understanding how timely GST payments influence a lender's decision to approve loans, this topic explores the correlation between GST compliance and creditworthiness. It highlights how consistent GST payments can enhance a business's financial credibility, potentially leading to higher chances of loan approval.
South Dakota State University degree offer diploma Transcriptynfqplhm
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University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
1. VALUE ADDED TAX (VAT)
By
Dr. Mohmed Amin Mir
Assistant Professor
Department of Commerce & Management Studies
Islamia College of Science & Commerce
(Autonomous with CPE Status)
Srinagar - 190002, Jammu & Kashmir, India
2. Concept of VAT
VAT was introduced in 2005
Is a multi-point system of taxation on sale of Goods wherein a
mechanism is provided to grant credit for tax paid on inputs
Tax is collected in stages for transactions involving sale of
goods
Input Tax i.e. Paid on purchases is rebated against Output Tax
i.e. Tax payable on sales
VAT = Tax Collected on Sales - Tax Paid on purchases
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3. VAT has Eliminated Cascading Effect
Cascading effect of tax implies charging of tax on tax
At the time of levy of tax, the total value is considered which is
inclusive of all taxes paid upto that point
If the tax is always charged on the selling price of the product,
the burden of tax keeps on increasing at each point of sales
Thus, the effect of taxation magnifies as at each level tax is
calculated on value, which includes taxes already levied and
paid
VAT has been developed to avoid such cascading effect
Tax is effectively charged only on Value Additions at each
stage and not on the entire sale price
Cascading Effect has been prevented through Tax Credit
System called INPUT TAX CREDIT (ITC)
2
4. Input Tax Credit (ITC)
In the Pre-GST era, the concept of ITC was prevailing in VAT,
Excise & Service Tax
ITC is a type of tax rebate given to a dealer
If any registered dealer is purchasing goods within a particular
state and has paid VAT & subsequently the goods were sold
in the same state, such registered dealer shall be allowed to
take credit for input tax, subject to certain conditions
The tax is imposed at each stage on the entire sales value &
the tax paid at earlier stage is allowed as Set Off
Such credit availability is called as ‘Input Tax Credit’.
3
5. Input Tax Credit (ITC)
For Example:
Mr. X is a registered dealer and has purchased inputs worth Rs. 5,00,000 (Plus VAT@ 4%). The
actual sales in the month were Rs. 9,00,000 (Plus VAT @10%)
Output VAT payable = Rs. 90,000
VAT paid on purchases = Rs. 20,000
Net VAT liability = Rs. 70,000
Since, VAT paid on purchases can be adjusted against output VAT payable, the net VAT payable
for the month shall be Rs. 90,000 minus Rs. 20,000
4
6. Conditions for ITC under VAT
1. Allowed to a registered dealer only
2. Allowed only if purchases are made from a registered dealer
3. Allowed in respect of VAT paid on purchases of Capital Goods
4. Not allowed on Central Sales Tax (CST) paid on purchases made
from outside state
5. Not allowed in respect of purchases from a dealer who has opted
for composition scheme
6. Not allowed if goods have been used to manufacture the
exempted goods
5
7. Variants of VAT
(Various possibilities of Credit for VAT paid on purchases)
1. GROSS PRODUCT VARIANT
VAT Credit is allowed only on VAT paid on Raw Materials other than Capital Goods. Thus, prevents
cascading effect due to allowance of VAT Credit on non-capital goods
VAT paid on Capital Goods will not be eligible for credit and forms a part of cost of such goods,
Depreciation portion includes some portion of VAT & also forms a part of cost of Product. When tax
is calculated on this cost, cascading effect still prevails
2. INCOME VARIANT
VAT Credit is allowed on all VAT paid on Raw Materials and Components
On Capital Goods, VAT Credit is allowed to the extent of depreciation (apportioned to various years)
on them
3. CONSUMTPION VARIANT
100% VAT Credit is allowed on VAT paid on Raw Materials and Components as well as Capital
Goods
6
8. METHODS FOR COMPUTATION OF VAT
1. Addition Method
Based upon identification of VALUE ADDED i.e. Aggregate at factor payments
Payments made to all factors of production are rent, deprecation, hire charges, interest on capital,
wages, profit etc.
VAT Liability = Tax Rate x Value Added
2. Invoice/ Voucher Method
Most Common & Popular Method for Computing Tax Liability under VAT system
Tax is levied on Full Sales Price
Credit is given for tax paid on purchases. Thus, tax is effectively levied only on Value Added
3. Subtraction Method
Tax is paid on the difference between Sale Price and Value of purchases
No question of Tax Credit as the tax has not been calculated on the total value of goods sold
i. Direct Subtraction Method = Aggregate Value of Sales Exclusive of Tax – Aggregate Value of
purchases Exclusive of Taxes
ii. Indirect Subtraction Methods = Tax inclusive Value of Sales - Tax inclusive value of purchases
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