Goods and Services Tax (GST) Essay Example | Topics and Well Written Essays - 3750 words

Goods and Services Tax (GST) - Essay Example The present research has identified that goods and services tax (GST) is said to be indirect and broad-based because it is charged depending on the supply or activities of good and services instead of being charged directly on income. Also, these charges are applied generally to all taxpayers with a few limitations. Taxation under GST is applied to the goods and services that are used by consumers, meaning that, this system is a consumption taxation system. A step process is used in the collection of taxes under GST, to make sure that tax is levied at every stage of the production chain, and also to allow suppliers of goods and services who are registered to claim the credit on tax paid to their inputs. Although the tax is charged at every stage, the tax is paid finally by the consumer at the end spot. For a firm to be able to take credit on GST, they must be registered. Thus, if they do not apply to be registered under GST, they are treated as the end consumers and can only enjoy th e GST credit they incur. GST is classified into three types of supplies namely; taxable supplies, input tax supplies, and GST free supplies. GST liability is created out of supply, but it is not created by the GST registered entity. The rules of GST do not apply if the supplies of either goods or services came to force before 1st July 2000, and in accordance to set special rules, gifts, when supply is made by entities not registered, or which are not required to register and when the transactions involved are not connected to Australia. In order to register Tiles Pty Ltd under GST system, the management needs to ensure that the firm satisfies the following requirements as stipulated under chapter 2, part 2-5 division 23 of the act. The main importance of registration is due to the following: - GST is only payable on any supplies for registered entities only Credits for input tax cannot be claimed unless the entity is registered GST returns are only lodged for registered entities Und er the goods and services act, an entity structure may include an individual, a sole corporate, a corporation body, a political body, a partnership, a trust and an unincorporated association or body of persons. Tiles Galore Pty Ltd is a small sized corporation, meaning that, it falls under an entity structure required to be registered. Thus, the firm can apply to be registered by ATO for GST. Registration requirements are in sec 23-5; it states that an entity is registered It is an enterprise Annual turnover meets the threshold for registration turnover The term entity is broad in definition and includes various legal persons as described here below; The trustee is that entity that should register for GST and ABN The partnerships are those entities that should register for GST but not for individual partners It thus entails that under section 23-10, an entity cannot be registered if it does not carry or intend to carry on with an enterprise. It is optional for that entity to registe r if it carries on an enterprise but does not meet the threshold for registration. Supplies fall under various sections namely; taxable supplies, GST free supplies, and input taxed supplies. Other kinds are importations and those that fall outside the scope of the GST. Taxable supplies are determinant factors in ruling whether a certain transaction is worth falling under GST.

Financial Educational Board Games (Toys and Game Industry) Research Paper

Financial Educational Board Games (Toys and Game Industry) - Research Paper Example 5,856.20M El Segundo,  CA Namco Bandai Holdings Inc. 4,083.77M Tokyo,  Japan Hasbro, Inc. 4,002.16M Pawtucket,  RI LEGO System A/S 2,272.69M Billund,  Ribe (hoovers.com, 2011) Consumers spent 25.1 billion on video games, hardware and accessories in 2010 (Entertainment Software Association, 2011). The best-selling Computer Games are Family and Children’s Games (19.8%), Shooter games (14.4%), Role-Playing games (12.4%). The Best-selling Video Games Genres are Action (30.1%), Sports (11.3), Racing (11.1%), Children and Family Entertainment (9.3%), Shooter 8.7%), Role-Playing (7.8%) (Entertainment Software Association, 2011). The US board games and puzzle market, alone, is estimated to be worth about $400 million, and ?50 million per year in the UK (Maclean, 2009). The toy and game industry in Australia has a revenue of two billion, and annual growth of 3.6% (2006-2011) (ibisworld.com, 2011). Industry Trends â€Å"Going Green† is a current trend in the industry. It involves three aspects. They are: sustainable materials, resource-saving packaging, and content that communicates sustainable action and values through play (nurembergtoyfair.com, 2011). Another industry trend is moving games from the digital realm to physical board game space. A recent example is Mattel’s â€Å"Angry Birds.† Keeping a foot in both digital and physical realms makes good business sense, in the face of increasing competition (Douban, 2011). One of the most potentially profitable trends is the transition to selling products inside virtual worlds. For example, you might go to a virtual pizza shop, in avatar form, and a pizza icon might pop up, enabling the user to order a real pizza, without leaving the virtual environment (boardofinnovation.com, 2009). The diversity of virtual worlds means a huge, untapped potential for a diversity of products. Other trends include pro-social and e-connected, cooperative games; games that can be constructed and reconstruc ted, allowing for continually new play experiences; games that involve action and sensori-motor experience or emphasize speed (a trend reflecting child obesity as a health concern); games that are designed for creative learning (toyassociation.org, 2011). Game Industry Growth and Decline An indicator of demand for toys is the manufacturers' shipments of miscellaneous durable goods, which rose 7.2 percent in the first six months of 2011 compared to the first six months in 2010 (hoovers.com, 2011). Furthermore, toy sales the world over, in 2010, increased 5% over 2009, to $83.3 billion, especially reflecting strong performance in Asia (npd.com, 2011). Fifty percent of global toy sales are accounted for by the top revenue countries: USA, Japan, China, UK, and France. Emerging markets with strong growth are Brazil, Russia, India (npd.com, 2011). The Online Game portion of the industry is growing. Table 2. Annual online game revenue in billions of U.S. dollars from 2006–2011 (Rive llo, 2011) Americans spent more than $3 billion in video game subscription fees last year. A new report by market research firm Pike & Fischer estimates that Americans will spend $5 billion annually by 2015 (boardofinnovation.com, 2009). Board games went through a slump when they had to compete with video and computer games, but now they are making a big comeback, due to the economic crisis (Thai, 2009).