StudentShare solutions
Triangle menu

Goods and services tax (GST) Assignment - Essay Example

Not dowloaded yet

Extract of sample
Goods and services tax (GST) Assignment

GST is said to be indirect and broad based because, it is charged depending on the supply or activities of good and services instead of being charged directly on income. Also, these charges are applied generally to all taxpayers with a few limitations. Taxation under GST is applied on the goods and services that are used by consumers, meaning that, this system is a consumption taxation system. A step process is used in collection of taxes under GST, to make sure that tax is levied at every stage of production chain, and also to allow suppliers of goods and services who are registered to claim credit on tax paid to their inputs. Although tax is charged at every stage, tax is paid finally by the consumer at the end spot. For a firm to be able to take credit on GST, they must be registered . Thus, if they do not apply to be registered under GST, they are treated as the end consumers and can only enjoy the GST credit they incur.
GST is classified into three types of supplies namely; taxable supplies, input tax supplies and GST free supplies. GST liability is created out of supply, but it is not created by the GST registered entity. The rules of GST do not apply if the supplies of either goods or services came to force before 1st July 2000, and in accordance to set special rules, gifts, when supply is made by entities not registered, or which are not required to register and when the transactions involved are not connected to Australia. Body content (A) Registration requirement In order to register Tiles Pty Ltd under GST system, the management needs to ensure that the firm satisfies the following requirements as stipulated under chapter 2, part 2-5 division 23 of the act. The main importance of registration is due to the following: - GST is only payable on any supplies for registered entities only Credits for input tax cannot be claimed unless the entity is registered GST returns are only lodged for registered entities 1. Determine whether it falls under entity structure required to be registered Under the goods and services act, an entity structure may include an individual, a sole corporate, a corporation body, a political body, a partnership, a trust and an unincorporated association or body of persons. Tiles Galore Pty Ltd is a small sized corporation, meaning that, it falls under an entity structure required to be registered. Thus, the firm can apply to be registered by ATO for GST. Registration requirements are in sec 23-5; it states that an entity is registered It is an enterprise Annual turnover meets the threshold for registration turnover The term entity is broad in definition and includes various legal persons as described here below; The trustee is that entity that should register for GST and ABN The partnerships are those entities that should register for GST but not for individual partners It thus entails that under section 23-10, an entity cannot be registered if it does not carry or intend to carry on with an enterprise. It is optional for that entity to register if it carries on an enterprise but does not meet the threshold for registration. 2. Does the entity make taxable supply reflected under the act Supplies fall under various sections namely; taxable supplies, GST free supplies and input taxed supplies. Other kinds are importations and those that fall outside the scope of the GST. Taxable supplies are determinant factors in ruling whether a certain transaction is worth falling under GST. This falls ...Show more


Goods and services tax is a legislation act under the new tax system (Goods and Services Tax) Act of 1999. This law is also common in other countries where it is either called GST or VAT (value added tax). …
Author : brownkatrine
Goods and services tax (GST) Assignment essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Goods and services tax (GST) Assignment"
with a personal 20% discount.
Grab the best paper

Related Essays

Creation and distribution of goods and services
One would be the Aldus professional series that would include professional versions of PageMaker, Aldus snapshot, Aldus freehand, and additional products aimed at creative graphics markets. The other was the Aldus executive series that included persuasion, PageMaker, and other products aimed at the business market.
10 pages (2500 words) Essay
Tax Advice Assignment
You can analyze certain aspects of taxation in respect of: 1. How does taxation affect a business after incorporation- its pros and cons. 2. Setting up of a company on equal shareholding basis and retaining Chloe as Company Secretary and finally, 3. Tax efficient profit withdrawal.
7 pages (1750 words) Essay
Assignment 3: Tax Reform
Individual shareholders paid tax at a rate of a minimum 15% on qualifying corporate dividends, and about 10 to 20% lower than them federal tax rate which is at times as high as 35%. Those taxpayers who are currently paying a marginal federal tan of 10 to 15% pay no taxes for qualifying dividends as well as any long-term capital gains.
5 pages (1250 words) Essay
Assignment 4: Estate Tax
The responsibility of IRS includes collection of taxes in US and enforcing the Internal Revenue Code that is framed by the US federal government. Currently IRS has divided its interest and audit functions under four divisions, namely the Large and International Business, the Small Business and Self-employed, Wages and Investment division and the Government organizations (exempted from tax).
6 pages (1500 words) Essay
Marketing Goods & Services
Two types of goods commonly result from a production system: services and products. Generally, products are physical goods, such as a personal computer, and services are abstract or nonphysical.
6 pages (1500 words) Essay
What are the effects if the government implement of Good-and-Services Tax (GST) in Hong Kong with the aim of broaden the tax base in Hong Kong
Structural budget deficits arise because fiscal revenue grows at a lower rate than fiscal expenditure in the long run. In other words, the problem is one of perennial overspending or of living beyond one’s means.
32 pages (8000 words) Essay
Differentiating Between Services and Goods Marketing
As clearly indicated, the product could possess distinguishing characteristics in terms of tangibility, distinct separateness, differences in kind, and perishability. Wolak, Kalafatis & Harris (1998, 24) clearly enumerated the
3 pages (750 words) Essay
I will upload the essay topic for you
Feed-in-tariff has been adopted by Australia together with 62 other countries. This program pays the PV system owner for any surplus energy that is produced. This means
10 pages (2500 words) Essay
Tax Assignment
ng into these taxes, we need to understand the records to be maintained for an ongoing business concern or a proprietorship concern for that matter getting converted to a company format. These include: Formation of a company has major benefits in terms of liability of partners
7 pages (1750 words) Essay
International tax coursework assignment
The double taxation treaty has been introduced in order to minimize the issue related to introduction of tax rate on a uniform basis. This treaty is introduced with the purpose of preventing tax evasion. The model tax convention has been adopted by
8 pages (2000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
Comments (0)
Rate this paper:
Thank you! Your comment has been sent and will be posted after moderation