Good and Service taxes are basically the same thing. It is a tax which we pay to the government for doing our business, any kind of business. So, now the question arises: what is good and what is service?
Some people define it as if you are doing something for customers as well as for money you just do not need to pay this tax. But in reality it is not correct.
There is no fixed definition of good or service because several things can be included in one category and some in another.
For example, cooking food at home for your family is a service but if you start a restaurant then it will be treated as a good by the government.
Taxes can be a touchy subject. A lot of people like to hire an accountant or use tax software to complete their taxes because it is often overwhelming to do on your own.
Regardless of who does your taxes, there are several different types of taxes you may owe on your income.
A consumption tax, sometimes called a use tax, is a tax paid to a government for consumption of goods and certain services within a particular region or jurisdiction.
Consumption typically occurs when a consumer purchases goods and services, whether for personal or business consumption.
The term "consumption" refers to the use up or expenditure of property rather than the income generated by property such as capital gains.
A proportional tax is the tax which is paid in accordance with the size of income. It means that a high-income earner will pay a higher amount of tax compared to a low-income earner.
A proportional tax is usually applied to sales and corporate taxes. In other words, it’s not based on an individual’s earning but their level of profit. Therefore, it's a fair approach because it doesn't matter how much you make, you will always be paying the same percentage regardless of your profits' size.
Property tax has plagued mankind for centuries. We all want to live without worry of the “man” coming in and assessing our property value.
No one wants to have a 30% increase on their property taxes, but we all want to be paid appropriately for the work we do.
Property tax can be one of the biggest expenses for homeowners and business owners alike, and one of the most confusing and time consuming tasks to review.
Payroll taxes are an inevitable, and a necessary, part of business. They keep the government running and are a major source of income for many states.
Many small business owners have issues with payroll taxes and try to avoid them whenever possible.
I hope GST calculator works for you. In the near future, I’m planning to build a new calculator. You can check all the tools I build in here.