Impact of GST on The Tax Structure And on Various Businesses

The goods and services tax aims to bring uniformity in the india in the tax structure . The tax will create one market in India . The GST is the one tax on goods and services right from the manufacturer to the consumers . The input of the tax paid at the one point will be available in the subsequent stages of the chain supply . In other word , the GST is the tax on the value addition at each stage .

The final consumer will bear the tax charged by the last dealer in the supply chain .The benefits of the GST will come to every manufacturer and services provider in the supply chain . The single largest benefit will be that all the tax can be registered and paid onlne ,which means that there will be greater transparency in the compliance of the tax . The GST will come on the foundation of the robust and comprehensive IT system in India .The GST & Service Tax Consultancy Services in Delhi will help businessman to know that the indirect tax are common in the whole country . This uniformity in the taxes will increase certainty and ease of doing business in India .

This means that a businessman can set up the business in any part of the country and the tax liabilities will be same .The cost of transportation of the goods from one state to another state throughout the country will be reduced as the good will not be charged at the border of the state . The single most advantage of this removal of barriers at the border of the states will be that there will be no hidden costs in the business . The reduction in the cost of transportation of the goods and services , will generate competitiveness in trade and industry .

The subsuming of many major and central and state taxes in the GST combined with the phasing out of the central sales tax will reduce the cost of locally produced goods and services . This may increases exports from India , as the cost of Indian good become competitive in the international market . The uniformity in tax regime and ease of compliance Auditing services in Delhi NCR with the tax regime wil make Indian business competitive in the long run . The consumers are going to benefit as the cost of the goods and services will be down and in some categories , the cost will be at the lowest level .  

Difference Between Direct Tax And Indirect Tax

Income tax is the portion of the income that one pays to the government for the payment of central and state government salaries , development of infrastructure and maintenance of the security of the country . The tax are levied on the law that is called income tax act , 1961. income tax is one of the many direct taxes that we play . The other direct taxes are capital tax , security transaction tax etc . The direct taxes are paid by the person directly .

The indirect taxes are paid by the consumers , when they use services at hotel , restaurants, in the form of service tax , entertainment tax ect . The other major indirect taxes are sale tax , value added tax , octroi etc . The income tax forms that major part of the revenue of the government of india . The function are managed by the ministry of finance and the direct handling responsibility is given to the central board of direct taxes . In direct tax has the effect of increasing the price of the products on which the tax is imposed .

                        

The example is the value added tax , which increases the price of the goods , which we buy . The VAT Consultants in Delhi NCR value added tax is imposed on the manufacturers , who then transfer the tax to the customers .Income tax has to be paid by the every individual , united Hindu family member , body of individual , corporate body , companies , local authorities and other person that generate the income that comes under the income tax slabs .

The income tax slabs may change from time to time and are not fixed for the longer duration . The tax are calculated on the annual income of the person . The year which is taken into calculation is the financial year not the normal year . The year in which the income is earned is called the previous year and the year in which the income is levied for tax is called assessment year .

                        

The taxes are collected by three ways by the government . The first is the voluntary payment of the tax like advanced tax and self assessment tax Income Tax Consultant in Delhi NCR . Then there is tax deduction at source , that is the deduction of the tax from the salary at the time of its payment every month . The final is tax collected . The government wants to bring the goods and services tax to remove several taxes and streamline the tax regime .