{"id":1902,"date":"2020-07-29T11:10:46","date_gmt":"2020-07-29T05:40:46","guid":{"rendered":"https:\/\/chatterdc.com\/?p=1902"},"modified":"2020-07-29T11:21:15","modified_gmt":"2020-07-29T05:51:15","slug":"all-about-sales-tax-and-its-calculation","status":"publish","type":"post","link":"https:\/\/chatterdc.com\/all-about-sales-tax-and-its-calculation\/","title":{"rendered":"All about Sales tax and its calculation"},"content":{"rendered":"
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The taxation system is one of the most ancient oldest systems. It is compulsory to pay a certain amount of money to the governing body of the nation based on the earning of an individual. This tax payment helps in development of the infrastructures and many more public services because of the public interest. Everything that we buy from groceries to garment or electronic appliances all of this involves a certain amount of tax. All the class of taxes that we know about falls in two types that is a direct tax and indirect tax. Some of the tax that we pay directly to the government like the income tax, corporate tax or wealth tax etc all comes under the category of direct tax. The indirect tax involve sales tax, service tax etc are taxes that can be paid indirectly. A better way to understand direct tax is that this tax is paid directly and cannot send or transferred to any other person, whereas indirect tax is different from direct tax in this the tax are played indirectly and the tax are imposed on a product.<\/p>\n
What is sales tax?<\/strong><\/p>\n Sales tax is imposed on the sales of a certain product or services. Defining it broadly we can say the tax that is imposed on the end consumer are sales tax for example if farmer is selling his product to a wholesaler the wholesaler has to get a resell certification to proof he is not the end consumer then the retailer buys the product and he has to go through the same process to get the certification finally he sales the vegetable in the market to the consumer and the sales tax is applied to the final consumer.<\/p>\n Types of sales tax<\/strong><\/p>\n Sales tax can be further categorised into two types the first one is the retail or consumption tax and the second is value added tax.<\/p>\n Advantages of sales tax<\/strong><\/p>\n <\/strong><\/p>\n Disadvantages of sales tax<\/strong><\/p>\n <\/strong><\/p>\n Sales tax calculator<\/strong><\/p>\n <\/strong><\/p>\n Sales tax varies on the basis of the population and demand of that particular product on that area. A sales tax calculator<\/strong><\/a> calculate the total percentage of sales tax yielded in that given particular city, area and state. If we want to know the exact rate of sales tax we have to enter our street no, locality state and Zip code of the area. Although the state allows to rate the city of their sales tax but we will find the sales tax on the basis of the states sales tax rate.<\/p>\n Sales tax is the backbone for all our economic development. So recently in U.S. a proposal came forward that is the fair tax sales tax proposal. In this proposal some believed that the entire system of taxation should be based on the sales tax system due to inherent advantage of this tax system. As this will lift up many burdens from the shoulder of the citizens, but it is not yet passed as any permanent law.\n
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