Taxation in USA is much simpler than India’s GST

Everyone might have heard about GST, Demonetisation and many economic jargons in recent times in India. The so-called common man are not so intuitive about this ultra bounce terminology, all they care is that the goods and service in the country should be cheaper and affordable. Indian taxation has got a recent amendment six months back and still it continuous in modification. Let me put some lights on how the superpower country and the global financial hub has aligned with there taxation system.

Sales tax is collected by the seller at the time of sell. Every country has its unique taxation system. The model could be sometime same to other countries but the figure of tax differs from country to country. I am going to put some lights on Sales tax system in USA. There are total Fourty fives states in USA which have different state-local tax system as it is not governed from the central level. Inter state supplies of good are not levied with tax in USA, if the selling company is present in the Source state.

The variation of sales tax between the states could be from 1-10 percent. In USA a seller is eligible for remittance of the tax he paid by filing return for the same. Many of the times the tax is not applicable on the gifts and charitable items until and unless that gift is used as a mode of payment instead of cash. Cascading of the tax is the worst thing happen to any country when we think as a end user or consumer. But in USA the tax method is not cascading, they tax on the retail sales or the supplies to the ultimate user. But the local municipal corporation in USA levy tax on the goods and service on local grounds hence making the service and goods costly when compared to the goods in other states.

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One of the most complex thing to understand by a comman man is Tax system. Due to non cascading tax system in USA, the system is more transparent when it comes to tackle corruption and bribe. Big companies have marketed the software packages for tax at the billing counter in order to bring uniformity in sales tax.

So this is simple and silly to understand

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