SARS TO PAYROLL CHAPTER 2 – VAT INTRODUCTION TO VALUE ADDED TAX (VAT) What is VAT? VAT stands for Value Added Tax. Value Added Tax (VAT) is levied on the supply of goods and services by vendors or it is a tax businesses charge when they supply their goods and services. We have to pay VAT on most of the things that we buy. In September 1991‚ South Africa replaced its general sales tax (GST) with a consumption-type value added tax (VAT). The VAT is administered with a rebate for intermediates
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COMPARISON BETWEEN COUNTRIES AUSTRALIA Australia Taxation Office levied Goods and Service Tax (GST) on goods and services provided in Australia. All imported goods are subjected to GST unless it is exempted such as foodstuffs and medical aids. Most goods in Australia are subjected to a 10% GST tax and 5% rate of import duty tax.[1] A person is required to register for GST if his business has a GST turnover of $ 75000 or more.[2] GST was implemented in the year of 2000‚ before it was introduce
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Payment of Service Tax Rules‚ 2007 provides that a service provider engaged in provision of ‘works contract service’ has an option to pay an amount of 4% of the gross amount charged for the works contract.For this purpose the ‘gross amount charged for the works contract’ means an amount which includes the value of all goods used in or in relation to the execution of the works contract‚ whether supplied under any other contract for a consideration or otherwise and also the value of all the services
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Meaning: - The Goods and Services Tax (GST) is a comprehensive value added tax (VAT) on the supply of goods or services. France was the first country to introduce this value added tax system in 1954 devised by a public servant. In India‚ due to non consensus between central and state government‚ the proposal is to introduce a Dual GST regime i.e. Central and State GST. Dual GST: - Many countries in the world have a single unified GST system i.e. a single tax applicable throughout the country. However
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Tax Definition: 1. A fee charged ("levied") by a government on a product‚ income‚ or activity 2. A financial charge or other levy upon a taxpayer (an individual or legal entity) by a state such that failure to pay is punishable by law Types of Tax: 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. Who collects tax? There is a major organization working to safeguard
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Nigeria Introduction Value Added Tax (VAT) was introduced in Nigeria in 1993 but became effective on 1 January 1994. VAT replaced the Sales Tax. VAT is governed by the Value Added Tax Act‚ Chapter V1‚ Laws of the Federation of Nigeria (LFN) 2004. The tax is administered by the Federal Inland Revenue Service (FIRS). Rates and scope Rates The standard VAT rate on goods and services is 5%. Value for VAT purposes includes customs duties‚ taxes‚ commission‚ transport‚ insurance and other charges
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charges; 2. Enforcement of all forfeitures‚ penalties‚ and fines on internal revenue taxes‚ fees and charges; 3. Execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts; and 4. Give effect and administer the supervisory and police powers conferred to it by the Tax Code and other laws. (Sec. 2‚ NIRC) Chief Officials of the Bureau of Internal Revenue. The Bureau of Internal Revenue shall have a chief to be known as Commissioner of Internal Revenue
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International Conference on Law‚ Humanities and Management (ICLHM’2012) July 15-16‚ 2012 Singapore Goods and Services Tax – A Roadmap for India Sarkar Subhrangshu Sekhar Over the years‚ tax policy in the country has evolved in response to the development strategy and its changes. In the initial years‚ the tax policy was directed to increase the level of savings‚ transfer available savings for investment as envisaged by plan strategy and the need to ensure a fair distribution of incomes‚ to correct
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the terms tax‚ taxpayer‚ incidence‚ and jurisdiction. 2. Express the relationship between tax base‚ tax rate‚ and tax revenue as a formula. 3. Identify and describe the types of taxes levied by local governments‚ state governments‚ and the federal government. 4. Explain why different taxing jurisdictions often compete for revenues from the same taxpayer. 5. Identify the reasons why governments continually modify their tax systems. 6. Describe the three primary sources of federal tax law. When
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CONTENT Sr. No. Topics Covered Page No. 1 Section - I Introduction to Value Added Tax. 1 - 12 2 Section - II Value Added Tax in Maharashtra. 13 A. Introduction. B. Registration under Value Added Tax. C. Explaining Value Added Tax. D. Calculating Tax Liability. E. Filing of Return and Paying Tax. F. Records and Accounts. G. Business Audit. H. Appeals. I. Tax Payer Service. J. Recovery‚ Offences and Penalties. 14 - 16 17 - 21 22 - 27 28 - 36 37 - 44 45 - 48 49 - 51 52 - 56 57 - 61 62 - 66 3
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