The determination of the Sales tax depends on the governing principal of the present government but still a universal application of sales tax is there in most countries. The different variants of sales taxes are given below:
- Manufactures’ Sales Tax- As the name
The determination of the Sales tax depends on the governing principal of the present government but still a universal application of sales tax is there in most countries. The different variants of sales taxes are given below:
- Manufactures’ Sales Tax- As the name suggests, this tax is levied on the manufacturing of certain tangible goods and has to be paid by the producers and manufactures.
- Retail Sales Tax- This type of tax is paid on the sale of retail items and has to be paid directly by final customer as well as by industrial users.
- Use Tax- This kind of tax is levied on those consumers for goods which are purchased with sales tax (it is generally applicable for those vendors who do not fall under the tax jurisdiction).
- Wholesale Sales Tax- This kind of tax is charged on only those individual who deal in wholesale purchasing, sale and distribution of goods when packaged and labelled good is ready for delivery or shipment to final users and consumers.
- Valued Added Tax- This is a tax which is applicable as per the decision of certain governments on sale thus avoiding the basic requirement of the system of resale certificate. This tax helps in avoiding tax cascading as only the value added difference between the amount paid by the initial buyer and the amount of money paid by each and every buyer subsequently for the same concerned product.
Importance of Sales Tax in India: India is one of the countries which has emerged as a sound democratic country that has attained great economic progress. The growth of the country can be attributed by the tax that is collected by the government. In India there