BUSINESS TAXATION by Aparnaa S https://padlet.com/aparnasindia/gdzq0ky3ccjtzqt7 Assignment 1 en-us 2021-08-24 05:15:53 UTC 2021-08-24 05:41:00 UTC hello@padlet.com Importance Of Direct Taxation: aparnasindia https://padlet.com/aparnasindia/gdzq0ky3ccjtzqt7/wish/1692970032
  • Direct taxation is one of the main sources of income for the government.
  • It also affects inflation, demand and supply within the economy by regulating disposable incomes across the board.
  • Luxury goods and services are the most affected by this regulation and so, the tax rates have to strike a balance between providing administrative funds, limiting inflation and leaving enough disposable income to encourage consumption.
  • Deductions on certain services such as insurance or some types of loans will attract individuals and organizations to invest in the Indian economy and generate usable capital.
  • This will allow for greater stability in the economy while also providing stakeholders with a greater degree of financial security.
  • More capital flowing into the country will increase revenue and in turn affect tax collection, providing the government with a higher budget for expenditure on developing the nation’s infrastructure, as well as its natural, man made and human resources.
]]> 2021-08-24 05:36:53 UTC https://padlet.com/aparnasindia/gdzq0ky3ccjtzqt7/wish/1692970032 Importance of Indirect taxation: aparnasindia https://padlet.com/aparnasindia/gdzq0ky3ccjtzqt7/wish/1692977338
  • Indirect taxes have been put in place to ensure that resources are used efficiently by individuals and organizations as lower expenditure on raw materials will mean lower margins lost on taxes.
  • In turn, lowered costs of production will raise profits and foster healthy competition among rival organizations thereby developing the economy.
  • This also provides consumers with a wider variety of options catered to their needs, facilitating improvements in standards of living.
  • The burden of taxation falls on the consumers in the end, as most retailers, manufacturers and service providers will attempt to recover taxes on initial expenses in the sales price itself.
  • Hence the importance of taxes of this kind lies in how it incentivizes organizations to make their operations as efficient as possible.
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