Sales tax is a tax that paid to the governing authority for the sales of certain goods and commodities or services. as per law the seller is allowed to collect the funds for the tax from the consumers at the time of purchase. When a tax on goods and services is paid to the governing authority directly by the consumer it is termed as use tax. There are laws under which exemption of certain goods or services from the sales tax or use tax. At point there are value-added tax (VAT) that is collected on goods or services and this is similar to sales tax. Sales tax consultant  thus helps in the calculation of these taxes so that there are no mistakes and wherever permitted by law the sales tax is saved.

With the help of professional sales tax support, there is a better understanding of the complete sales tax compliance. there are different types of sales tax and understanding them in a better way is required for full proof maintenance of books of accounts. The types of taxes are:
Conventional or retail sales tax this is the sales tax that is levied on the sale of a good to its final consumer and is charged every time the item is sold retail. Sales to businesses that later resale the products are not charged sales tax, as they are not the end users. These resellers are issued a certificate of resale by the taxing authority and they need to provide a certificate to the seller at the point of purchase with a statement specifying that the product will be resold.

Manufacturer’s sales tax- the tax that is levied on the sales of tangible personal property by the manufacturer or the producer.

Wholesale sales tax- The tax levied on the sales of wholesale tangible personal property that is in the form packaged and labeled ready for shipment or delivery to the final users and consumers.

Retail sales tax- The tax that is levied on the sales of tangible personal property to the end users or industrial users.

Gross receipts taxes- The taxes that are levied on the sales of businesses who have been condemned for their cascading or pyramiding effect in which the item has been taxed more than once before it makes its way for the final retail sale
Apart from the above comprehensive list there are other similar taxes like excise taxes, use tax, securities turnover tax, value added tax, fair tax and so on. The computation process of tax is not simple and involves many calculations and classification thus for accurate tax payment it is required that the tax is calculated after consultation with the professional sales tax consultant.

The other consumption Taxes and Corporate Taxes are different. Therefore it gets complicated and so for this the services of a professional accounting company are required. Apart from the above there is other services tax filing so for all this a professional accounting firm is required

ABOUT THE AUTHOR: Preeti

RELATED POSTS

One thought on “Sales tax support: things to know about

LEAVE YOUR COMMENT

Your email address will not be published. Required fields are marked *

%d bloggers like this: