Five Often Missed Tax Deductions For Small Businesses

All set for filing the tax returns? Hurry and take advantage of these five tax deductions. Remember deduction can only be availed if you are mentioning the deduction.

Lifetime Learning Credit - No course can be considered to be very small. So if you wish to weave a basket or Tax Advisory improve your working skills, you can go ahead and join a course. Out of the initial dollars 10,000 you can claim 20 percent. The maximum limit would be dollars 2000 an year. The condition prevalent for availing this is that the course should have been done from an accredited institution.

Business Travel Deductions - While traveling either for your business or for a traveling trip, your trip Ind AS Implementation Firm is deductible but there are certain rules to it. If you undertook your business trip while driving, a standard mileage of 56.5 cents/mile gets deducted. In case if your trip is longer, meals and entertainment get deducted up to 50 percent.

Sales Tax Deduction - Choice of getting either state income tax deducted or state sales tax deducted is entirely up to you. You need to calculate the one where deductions are more and get the same deducted. Calculator for calculating the same is available with the IRS.

Health Insurance Deduction - In case of being self-employed, the monetary aspects paid for yourself and your dependents get hundred percent deducted. But if you are an employee then also you can avail seventy two percent of the premiums on the Health coverage tax credit. This credit is refundable irrespective of your owing zero percent on tax.

Charitable Contribution Deductions? - I’m sure you must have given a bag full of clothes to charity. If you Company Formation have done so, do remember to collect the receipt from them. Taking a receipt can help you avail the deduction. The fair market value of your donations can be claimed easily.

Undoubtedly, keeping a track of your lifetime learning credit, business travel deductions, sales tax deduction, health insurance deduction and charitable contribution deduction can be extremely tedious.

Therefore, you need an accountant who can keep a track of all your activities and collect receipt and record it timely for you to get your deductions done. For needing an accountant, you can contact AKGVG For more. Business Setup Services

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Is Equalisation Levy An Appropriate Decision Of The Government?

In the budget of 2016-17, the finance minister introduced a new tax system named as the ‘equalisation levy’. This tax of six percent would be levied on the revenue earned through online advertisement. The non-residents who would have received any specific service for more Accounting Audit Service  than one lakh from a resident possessing business in India or a non-resident being permanently settled in India would have to pay the equalisation levy tax but this would be exempted from the income tax.

The committee of the government has decided to not only charge the equalisation levy on the online advertisements alone but also to charge on thirteen other transactions like website designing and maintenance, digital platform for sale of goods and services, cloud computing, online marketing, online download of software and applications, etc.

Aren't there enormous non Indian companies and whether this tax to be levied on non-Indian residents has been dealt with in detail? It has been clarified that the tax is very different than the tax earned on the income therefore; it has to be charged differently. This tax would not be a part of the income tax yet this tax would be levied as this tax has been categorized as a separate tax.

The controversy here is that whether this tax is an additional tax or whether this tax would exempt the Transactions Advisory online advertisement service tax. Formulation of the levy tax is supposed to be beneficial for the non-Indian companies indulged in making online advertisements because this would exempt them from paying the tax under the act of the income tax.

Now there is still a possibility for the officials of the income tax department to charge forty percent more tax from foreign companies settled in India. In these cases, the equalisation levy might also get charged. Therefore, the foreign companies might end up paying double tax in India. This is a concern and hasn't yet been addressed.

The major concern here is that the tax payer would be unable to appeal to the tax officials or the tax authority against such issues. Such issues need to be addressed before charging the equalisation levy tax. Obviously, this added cost can’t be paid by the foreign companies. Thre fore, such issues remain unaddressed.

Obviously, such a tax would invite challenges and such challenges can only be addressed if the Private Limited Company Registration payee and the payer negotiate on the arrangements pertaining to their business. This can only help us know who should actually be the one to pay the additional cost. 

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GST Would Be A Major Step Towards Tax Reform In India

The taxation system in India is extremely complicated. Infact, direct as well as indirect taxes are being collected by the central as well as the state governments in India. Therefore, doing business becomes difficult. For a business man who pays two different taxes finds paying two types Tax Advisory of taxesto bea tedious job because this includes maintenance of two different types of records. This leads to certain businessmen escaping the paying of the taxes. Due to various kinds of taxes, the businessmen find it extremely difficult. Therefore, the Government has decided to start the Goods and service tax being widely used in more than 150 countries.

The goods and service tax would be extremely beneficial because it would replace all the indirect taxes levied by the state Internal Financial Control as well as the central government. This would bring an end to the indirect taxation system. The benefits to the various companies would be as-

Ease of doing business for the companies-A business undergoing various states has to pay the taxes of various states. Every state possesses its own fee structure and fee payment. This complex system will come to an end with the GST as centralization and uniformity would be prevalent.

Expansion of the business would become easier-A business having a turnover of more than Rs.5lakh has to be having Implementation Of GST In India a VAT registration. After the , this amount would increase to Rs.10lakh and people possessing the business with a turnover from Rs.10 lakhto Rs50 lakh would have to pay the taxes at a less rate.

Getting respite from Sales as well as services-Businesses coming under two categories of sales as well as services like restaurants have to pay vat as well as the service tax on the items separately. This differentiation would end because of the GST.

Implementation of the GST appears to be a win situation for certain businesses. It would even enhance the competition and foster the growth in the longer run.

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