Sales TaxSponsored Links
Trade has created an integral segment of the world’s history. It has been helpful in shaping and developing the world in to what it is today. A world without trading wouldn’t be completely functional. This concept made people to move around to other parts of the world so as to find trading partners. Therefore eventually the demographic of the world has been greatly changed. This concept is very important in the world therefore the governments found a way to benefit from this via sales taxes.
Sales tax is a form of tax payment to the government when goods and services are sold. Sales taxes are a form of indirect taxation and are charged from the purchasing point or during the exchange of goods that are taxable. The percentage charged depends on the value of the services or goods.
The rules governing this tax type depend on the administration, which is in power and the policies enforced. Sales tax is simply the additional money one has to pay while purchasing services or goods.SPONSORED LINKS
Types of the sales tax
This concept relies on the governing body and the principles they decide to implement. However, there are some general sales taxes, which are applicable to most countries. Below are the different types;
- Sales taxes for retail section
- Sales taxes for the manufacturers section
- Sales taxes for wholesale section
- Use tax
- Value added tax
India has managed to emerge as a sound county of democracy. Moreover, over the years, it has managed to achieve great progress in the economy as compared to several other countries. Taxes collected by the administration have played a vital role in this development. The government follows the central union administration at the top and the state administration at state level system.Sponsored Links
The Central Act of Sales Tax, 1956
It’s the sales tax rules that govern the whole entire country. This Act enables the collection of sales taxes of various services and commodities all over the country. The amount of sale tax is payable to the state in which the goods or services are purchased and is determined by the policies implemented in that state.
Objectives of Central Act of Sales Tax
This Act was created with the main goal of making the task of tax collection much simple and streamlined. The main objectives have been stated below.
- Provide for levying provision, collection and the dissemination of taxes gathered from the sales of goods via interstate trades
- Principle of frame so as to determine when the sales and goods purchase occur
- The classification of certain goods as important and special during commerce and trade
- To be the authority in the solving of interstate disputes when they occur
State administration taxes
State governments have the powers to impose and collect sales taxes within their jurisdiction. This is helpful in that it enables them meet their requirements financially. The sales taxes might vary from one state to another. This is the reason as to why some goods are much cheaper in other states as compared to others.