Value Added Tax
VAT applies only to the sale of ‘goods’. The value here, refers to the modifications made to a product before it is sold to the customer.
E-Commerce Taxation
When internet businesses first entered the mainstream in the 1990s, few people were able to predict the transformational impact e-commerce would have on the U.S. economy. In 1999, total online retail sales in the United States amounted to about $15 billion, or approximately one-half of one percent of all retail sales nationwide.By 2016, this figure had skyrocketed to over $389 billion, with e-commerce amounting to eight percent of total retail sales.
This type of growth is nearly unparalleled in U.S. economic history, and lawmakers have worked to develop rules for the e-commerce industry that ensure both continued development and effective regulation of this increasingly important market. This is particularly true in the development of e-commerce tax laws, which have recently shifted focus from facilitating growth in e-commerce markets to ensuring that online businesses contribute their fair share of revenues to the public coffers.
Service Tax
For service oriented businesses, the government uses Service Tax. ‘Service’ includes practically everything today. The list of taxable services, that was limited to 3 in 1994, has grown to a 114 today.
Sales Tax
Sales tax is levied on the sale of a commodity, which is produced or imported and sold for the first time. If the product is sold subsequently without being processed further, it is exempt from sales tax.
How can SolutionsMantra help you?
The SolutionsMantra Bill Book makes things quick and easy for you. Based on your and the buyers GSTIN, the software will automatically calculate the place of supply according to the provisions and inform you whether you need to charge CGST/SGST or IGST.