Sales
Tax
Sales tax is a tax imposed by
the central / local government on retail goods and services at the point
of sale. The tax is collected by retailers and passed on to the state.
Sales tax is a percentage levied on the selling price of goods and
services.
It is an 'ad valorem' tax, meaning that it is levied according to the
monetary value of the taxable commodity. It accounts for 25 to 50% of
the taxes collected by Government and can be easily collected.
Types of Sales Tax
- Central Sales Tax
- Local Sales Tax
Some consider sales tax to be of regressive nature, meaning that
people with low income end up paying more sales tax as compared to
people in higher income group.
Professional accounting firms help individuals, companies and other
forms of businesses to fill and compute sales tax and also pay it to the
local or central government. This further helps the company management
concentrate on more important issues. Essential food items, prescriptive
drugs are exempt from sales tax to cause less burden to the poor.
Advantage
Outsourcing sales tax computation has the following benefits:
- Faster computation of tax
- Error free computation
- Time saving
- Saving precious man hours
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