SALES TAX, VAT, AND SERVICE TAX ARE N0N-PAYABLE BY THE CONSUMERS' EXPLICITLY.
The purpose of any tax collection is to raise resources for government expenditures on projects of public welfare.Whenever the government or other authorities levy/impose any tax, they have certain target groups of taxpayers in their mind.
Accordingly,
(1) Without looking into anybody’s profession, the government considered that it should collect tax in proportion to individual’s income and help the economically weaker sections. This tax is INCOME TAX, which isuniformly applicable to all.
(2) Then it came to the notice of the government that sellers are making undue profits by taking undue advantage of the consumers. So it levied SALES TAX, which is supposed to be paid by seller from his bulging pocket.But the sellers collected the tax from consumers rather openly and amount of tax went to government from consumers’ pockets. It defeated the very purpose of levying of the tax because the seller remained floating orunaffected.
(3) Recently the government has noticed that manufacturers of goods and service provider professionals earn undue profits through value addition and exorbitant charging for their services respectively. It has therefore levied VAT for the manufacturer to pay and service tax for the service provider to pay.
On such matters of tax payments, all people take a philosophical view that burden of tax payment ultimately comes on common man, the consumer. But this overstretched philosophical view defeats the practical purpose of taxing the rich in general and unduly rich in particular for the cause of poor.
It is observed that sellers, manufacturers of goods and now the service providers explicitly demand/add taxes in their bill from the customers/consumers.
One should object to this saying that the payments are due on/for them and not the consumers.
Also just as the declared share prices or the Prices of Gold and silver we also must have a gazzette declared price list of all the items which should not consider this tax amounts so that we demand items at those rates and the sellers/service providers have to pay the tax amount levied to them.
The Government has been kind enough to introduce fast acting consumer courts under consumer rights, which provide certain protection to consumers. One may try going in appeal in consumer court against paying Sales Tax/Service Tax / Value Added Tax to test the trueness or logic in my views given above.
It is felt that pubic awareness on above matter is very essential.
Accordingly,
(1) Without looking into anybody’s profession, the government considered that it should collect tax in proportion to individual’s income and help the economically weaker sections. This tax is INCOME TAX, which isuniformly applicable to all.
(2) Then it came to the notice of the government that sellers are making undue profits by taking undue advantage of the consumers. So it levied SALES TAX, which is supposed to be paid by seller from his bulging pocket.But the sellers collected the tax from consumers rather openly and amount of tax went to government from consumers’ pockets. It defeated the very purpose of levying of the tax because the seller remained floating orunaffected.
(3) Recently the government has noticed that manufacturers of goods and service provider professionals earn undue profits through value addition and exorbitant charging for their services respectively. It has therefore levied VAT for the manufacturer to pay and service tax for the service provider to pay.
On such matters of tax payments, all people take a philosophical view that burden of tax payment ultimately comes on common man, the consumer. But this overstretched philosophical view defeats the practical purpose of taxing the rich in general and unduly rich in particular for the cause of poor.
It is observed that sellers, manufacturers of goods and now the service providers explicitly demand/add taxes in their bill from the customers/consumers.
One should object to this saying that the payments are due on/for them and not the consumers.
Also just as the declared share prices or the Prices of Gold and silver we also must have a gazzette declared price list of all the items which should not consider this tax amounts so that we demand items at those rates and the sellers/service providers have to pay the tax amount levied to them.
The Government has been kind enough to introduce fast acting consumer courts under consumer rights, which provide certain protection to consumers. One may try going in appeal in consumer court against paying Sales Tax/Service Tax / Value Added Tax to test the trueness or logic in my views given above.
It is felt that pubic awareness on above matter is very essential.
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