TAX AUDIT

TAX AUDIT

Group no: 2

t.y.b.b.i.

AcknowledgementIt gives us immense pleasure in acknowledging the valuable and co-operative

assistance extended to us by the various individuals who have helped us

successfully in completing our project.

We would also like to thank the Mumbai University and Professor Sonali for

giving us the opportunity to showcase our project making skills and for giving

us proper guidance in completing the same.

Last but not the least we would also like to thank our Parents, Friends and

Colleagues who have helped us in successfully completing our project.

DeclarationWe the students of St. Andrew’s College of T.Y.B.B.I. hereby declare that we have completed the Project TAX AUDIT for the Subject AUDITING for the year 2012-2013. Information submitted is true and original to the best of our knowledge.

GROUP MEMBERS

NAME ROLL NO SIGNATURE

Jashma Cordeiro 8205

Simona D’souza 8216

Tejal Kelaskar 8222

Rebecca Mendes 8227

Jovita Palaty 8237

Sneha Pinto 8242

Petrinell Nunes 8252

Valentina Henriques 8256

Sayli Patil 8238

CERTIFICATEI …………… hereby certify that the students of St. Andrew’s College of

T.Y.B.B.I. have completed the Project TAX AUDIT for the Subject

AUDITING for the year 2012-2013. Information submitted is true and original

to the best of my knowledge.

___________

SIGN

INDEX

INTRODUCTION

INCOME TAX AUDIT- INDIVIDUAL

INCOME TAX AUDIT – COMPANY

SALES TAX AUDIT

VAT AUDIT

WEALTH AUDIT

SERVICE TAX AUDIT

CUSTOMS TAX AUDIT

STAMP DUTY AND EXCISE TAX AUDIT

INTRODUCTION

Tax audit is an audit to find out the accurate tax payable by the company as per

the income tax 1961. And ensure that all statutory payments are remitted on or

before the respective due dates by company.

Moreover, it helps to find out the difference between

Company's act and income tax act. The difference is called deferred tax assets

and liability of the company.

Tax audit is compulsory for every company,partnership firm or undertaking

whose turn over exceeds40 lacs and 10 lacs in case of professionals have to

compulsory go for the auditing of accounts from a Chartered Accountant under

section 44AB of the income tax act 1961.

WHO NEEDS TO GET A TAX AUDIT DONE ?

Audit under section 44AB is applicable to four categories of assesses The first

category covers any person carrying on a business whose total sales, turnover or

gross receipts exceed Rs. 60 Lakhs during the previous year.

The second category covers any person who is carrying on a profession whose

gross receipts exceed Rs.15 Lakhs.

The third category covers persons whose income is assessed on a presumptive

basis under section 44AE, 44BB or 44BBB. Where such assesses declare an

income lower than that presumed under the Sections 44AE, 44BB or 44BBB,

they are required get their accounts audited in accordance with Section 44AB.

The Fourth Category covers those persons who declare a lower income than the

amount presumed under section 44AD. The difference between the fourth and

the third category is that, in the case of the fourth category, assesses are subject

to audit under section 44AB only if their income exceeds the basic exemption

limit.

Any person who is covered by the above four categories is required to get his

accounts audited by a Chartered Accountant before 30th September of each year.

Apart from the Tax audit under Section 44AB, there are audit and certification

requirement for various assesses under various provisions of Income Tax Act.

All such audit and certification under Income Tax is done by a Chartered

Accountant.

INCOME TAX AUDIT (INDIVIDUAL)

An income tax is a tax levied on the income of individuals or businesses

(corporations or other legal entities). Various income tax systems exist, with

varying degrees of tax incidence. Income taxation can

be progressive, proportional, or regressive. When the tax is levied on the

income of companies, it is often called a corporate tax, corporate income tax, or

profit tax. Individual income taxes often tax the total income of the individual

(with some deductions permitted), while corporate income taxes often tax net

income (the difference between gross receipts, expenses, and additional write-

offs). Various systems define income differently, and often allow notional

reductions of income (such as a reduction based on number of children

supported).

A personal or individual income tax is levied on the total income of the

individual (with some deductions permitted). It is often collected on a pay-as-

you-earn basis, with small corrections made soon after the end of the tax year.

These corrections take one of two forms: payments to the government,

for taxpayers who have not paid enough during the tax year; and tax

refunds from the government for those who have overpaid. Income tax systems

will often have deductions available that lessen the total tax liability by reducing

total taxable income. They may allow losses from one type of income to be

counted against another. For example, a loss on the stock market may be

deducted against taxes paid on wages. ncome taxes are used in most countries

around the world, but are not without criticism. Frank Chodorov wrote "... you

come up with the fact that it gives the government a prior lien on all the

property produced by its subjects." The government "unashamedly proclaims

the doctrine of collectivized wealth.That which it does not take is a

concession." Some have argued that the economic effects of an income tax

system penalize work, discourage saving and investing, and hinder the

competitiveness of business and economic growth. Income taxes are also not

border-adjustable; meaning the tax component embedded into products via

taxes imposed on companies cannot be removed when exported to a foreign

country. Alternate tax systems such as a national sales tax or value added

tax remove the tax component when goods are exported and apply the tax

component on imports.

Income Tax Rates / slabs

PERSONAL TAX RATES

For individuals,

For the Assessment Year 2007-08 Taxable income slab (Rs.) Rate (%)

Up to 1,00,000 (for men) NIL

Up to 1,35,000 (for women) NIL

Up to 1,85,000 (for resident individual of 65 years or above) NIL

1,00,000 – 1,50,000 10% education cess 2% (for men)

1,35,000 – 1,50,000 10% education cess 2% (for women)

1,50,001 – 2,50,000 20% education cess 2% (for both)

2,50,001 – 1,000,000 30% education cess 2% (for both)

1,000,001 upwards 30*

A surcharge of 10 per cent of the total tax liability is applicable where the total

income exceeds Rs 1,000,000.

PERSONAL TAX RATES

For individuals,

For the Assessment Year 2008-09 Taxable income slab (Rs.) Rate (%)

Up to 1,10,000 (For Men) NIL

Up to 1,45,000 (for women)NIL

Up to 1,95,000 (for resident individual of 65 years or above) NIL

1,10,000 – 1,50,000 10

1,50,001 – 2,50,000 20

2,50,001 – 1,000,000 30

1,000,001 upwards 30*

A surcharge of 10 per cent of the total tax liability is applicable where the total

income exceeds Rs 1,000,000.

THE TYPES OF TAXABLE INCOME

Income from Salary

Income from House Property

Income from Business and Profession

Income from Capital gains

Income from Other Sources

Remuneration for work done in India is taxable irrespective of the place

of receipt.

Remuneration includes: Tax upon salaries and wages

Tax upon pension

Tax upon bonus, fees & commissions

Tax upon Gratuity

Tax upon Annuity

Tax upon profits in lieu of or in addition to salary

Tax upon advance salary and perquisites

Others:

Tax upon Allowances

Tax upon Deferred compensation

Tax equalisation

Besides remuneration for work, individuals may be taxed on the

following income:

Tax upon Income from house property

The annual value of property shall be chargeable to income tax under the

head "Income from House Property".

Tax upon Income from business or professions

Tax upon Income from capital gains

Tax upon Income from other sources

Income of every kind, which is not chargeable to income tax under the

heads salary income from house property, profits and gains of business

and profession, capital gains can be taxed under the head "income from

other sources". However such income should also not fall under income

not forming part of total income

DEDUCTIONS

Section 80 C Deductions

Section 80C of the Income Tax Act allows certain investments and

expenditure to be tax-exempt. The total limit under this section is Rs.

100,000 (Rs. 1 lakh) which can be any combination of the below:

Contribution to Provident Fund or Public Provident Fund

Payment of life insurance premium

Investment in pension Plans

Investment in Equity Linked Savings schemes (ELSS) of mutual funds

(which usually have "Tax Saving" in their names)

Investment in specified government infrastructure bonds

Investment in National Savings Certificates (interest of past NSCs is

reinvested every year and can be added to the Section 80C limit)

Payments towards principal repayment of housing loans.

Payments towards education fees for children. (Only for 2 children)

INCOME TAX ( COMPANIES)

Many countries impose corporation tax or company tax on the income or capital

of some types of legal entities. A similar tax may be imposed at state or lower

levels. The taxes may also be referred to as income tax or capital tax. Entities

treated as partnerships are generally not taxed at the entity level. Most countries

tax all corporations doing business in the country on income from that country.

Many countries tax all income of corporations organized in the country.

Company income subject to tax is often determined much like taxable income

for individuals. Generally, the tax is imposed on net profits. In some

jurisdictions, rules for taxing companies may differ significantly from rules for

taxing individuals. Certain corporate acts, like reorganizations, may not be

taxed. Some types of entities may be exempt from tax.

Many countries tax corporate entities on income and also tax the owners when

the corporation pays a dividend. Where the owners are taxed, a withholding tax

may be imposed. Generally, these taxes on owners are not referred to as

corporate tax.

Corporate tax or company tax refers to a tax imposed on entities that are taxed

at the entity level in a particular jurisdiction. Such taxes may include income or

other taxes. The tax systems of most countries impose an income tax at the

entity level on certain type(s) of entities (company or corporation). Many

systems additionally tax owners or members of those entities on dividends or

other distributions by the entity to the members. The tax generally is imposed

on net taxable income. Net taxable income for corporate tax is generally

financial statement income with modifications, and may be defined in great

detail within the system. The rate of tax varies by jurisdiction. The tax may have

an alternative base, such as assets, payroll, or income computed in an alternative

manner.

Most income tax systems provide that certain types of corporate events are not

taxable transactions. These generally include events related to formation or

reorganization of the corporation. In addition, most systems provide specific

rules for taxation of the entity and/or its members upon winding up or

dissolution of the entity.

In systems where financing costs are allowed as reductions of the tax base (tax

deductions), rules may apply that differentiate between classes of member-

provided financing. In such systems, items characterized as interest may be

deductible, subject to interest limitations, while items characterized as dividends

are not. Some systems limit deductions based on simple formulas, such as

a debt-to-equity ratio, while other systems have more complex rules.

Some systems provide a mechanism whereby groups of related corporations

may obtain benefit from losses, credits, or other items of all members within the

group. Mechanisms include combined or consolidated returns as well as group

relief (direct benefit from items of another member).

Most systems also tax company shareholders on distribution of

earnings as dividends. A few systems provide for partial integration of entity

and member taxation. This is often accomplished by "imputation systems"

or franking credits. In the past, mechanisms have existed for advance payment

of member tax by corporations, with such payment offsetting entity level tax.

Many systems (particularly sub-country level systems) impose a tax on

particular corporate attributes. Such non-income taxes may be based on capital

stock issued or authorized (either by number of shares or value), total equity,

net capital, or other measures unique to corporations.

Corporations, like other entities, may be subject to withholding tax obligations

upon making certain varieties of payments to others. These obligations are

generally not the tax of the corporation, but the system may impose penalties on

the corporation or its officers or employees for failing to withhold and pay over

such taxes.

Corporations may be taxed on their incomes, property, or existence by various

jurisdictions. Many jurisdictions impose a tax based on the existence or equity

structure of the corporation. For example, Maryland imposes a tax on

corporations organized in that state based on the number of shares of capital

stock issued and outstanding. Many jurisdictions instead impose a tax based on

stated or computed capital, often including retained profits.

Most jurisdictions tax corporations on their income. Generally, this tax is

imposed at a specific rate or range of rates on taxable income as defined within

the system. Some systems have a separate body of law or separate provisions

relating to corporate taxation. In such cases, the law may apply only to entities

and not to individuals operating a trade. Such laws may differentiate between

broad types of income earned by corporations and tax such types of income

differently. Generally, however, most such systems tax all income of a

corporation in the same manner.

Some systems (e.g., Canada and the United States) tax corporations under the

same framework of tax law as individuals. In such systems, there are normally

taxation differences related to differences between the inherent natures of

corporations and individuals or unincorporated entities. For example,

individuals are not formed, amalgamated, or acquired, and corporations do not

generally incur medical expenses except by way of compensating individuals.[6]

Many systems allow tax credits for specific items. Such direct reductions of tax

are commonly allowed for foreign taxes on the same income and

for withholding tax. Often these credits are the same as those available to

individuals or for members of flow through entities such as partnerships.

Most systems tax both domestic and foreign corporations. Often, domestic

corporations are taxed on worldwide income while foreign corporations are

taxed only on income from sources within the jurisdiction. Many jurisdictions

imposing an income tax impose such tax income from a permanent

establishment within the jurisdiction.

Corporations are also subject to property tax, payroll tax, withholding

tax, excise tax, customs duties, value added tax, and other common taxes,

generally in the same manner as other taxpayers. These, however, are rarely

referred to as “corporate tax.”

WHY IS TAX AUDIT REQUIRED?

The objective of Tax Audit is to ensure that the books of accounts of the

company have been maintained in accordance with the provisions of the Income

Tax Act. A proper audit for tax purposes would ensure that

proper records are being maintained by the company and that the accounts

properly reflect the income reported by the company in its tax returns. This

audit effectively curbs tax evasion and ensures tax

compliance.

SALES TAX AUDIT

A sales tax audit is the examination of a company’s financial documents by a

government's tax agency to verify if the proper amount of sales tax has been

remitted to the proper authority.

Use tax was one of the first things that came up. Use tax applies when you

purchase tax- able items or services without paying sales tax to the vendor. The

rate is identical to sales tax and in some cities there is a use tax in addition to the

state use tax. The tax is based on the cost of the taxable purchase.

It is pretty obvious that you pay a use tax on items purchased anywhere and

used in state for which the vendor didn't charge a sales tax. But did it occur to

you to pay a use tax on items bought in other states where a lower sales tax than

your state's was charged. Buy in one state with a 4% tax? Then in Minneapolis

you'd have to remit 2.5% use tax to the state and 0.5% use tax to the city! There

are other times but those are the biggies.

Sales tax must be charged on lodging furnished for periods of more than 30

days if there is no enforceable lease agreement with the guest for a specific

room. The lease agreement must require that the lessor and lessee give prior

notice of their intention to vacate. It must be a specific guest not a company

who uses it for several different employees.

Other items for which hotels must show sales taxes separately on the folio or

state specifically that they are included in the price include: in-room movies;

copier (but not fax) services; food and liquor from an in-room courtesy bar;

game (pinball, pool, jukebox, etc.) receipts; laundry or dry cleaning services

(coin operated are not taxable); no-show charges; parking fees and car wash

charges; popcorn prepared by the vendor; rental of equipment (primarily

meeting room equipment if billed separately from non-taxable meeting room

charges); rental of recreational equipment; telephone access charges, but not the

actual cost of the service if shown separately; and a lot more things!

Here are some items which can be treated in unique ways. A telephone call

accounting system doesn't show what the actual service costs. In this case

charge a sales tax on the total and pay the sales tax shown on the phone bill

from the vendor. The hotel is allowed to take an adjustment to the taxable

amount reported on the sales tax return by the amount they are billed by the

phone company for the actual costs of the guests' long distance calls. This can

only be done if you can separate administrative calls from guest calls!

Some miscellaneous items. Whoever removes the coins from a machine is

usually the one responsible for sales taxes. In a gift shop food, candy, soft

drinks, clothing and health products may all be taxed at distinct rates. Gift

certificates are not taxable and are treated as cash. The tax is charged when the

recipient uses it. Items sold subject to the discount on a coupon are taxed at the

discounted price unless you are being reimbursed for the amount by a third

party. In Minnesota all equipment leased or purchased to provide lodging is

taxable. If the vendor does not collect sales tax you must pay a use tax.

Consumable supplies purchased by hotels are taxable. Food products are not,

except for candy and soft drinks (containing less than 15% fruit juice - watch

those labels) or food purchased from a caterer or restaurant! Please interpret that

without calling me. Oh yes, if you are a restaurant some of those consumable

items like place mats and paper napkins are not taxable. I'm not sure why toilet

paper and tissues in hotels are treated differently for tax purposes, but they are!

By the way the toilet paper would probably be exempt from sales tax both at

time of purchase and sale if it were noted separately on the folio. Some states

have been successful in convincing their legislatures that a hotel's consumable

items are actually resold in a package rate (the room rate) but none has

challenged their status in Minnesota although it would save us considerable

sums.

Supplies for repair or redecorating are taxable if they are purchased without

installation. So have the UPS delivery person slide those ACs right into that

sleeve and save sales tax. Seriously, you may realize a savings buying items

installed by the vendor or a contractor. On the other hand, postage and shipping

charges separately stated on an invoice are not taxable. Handling charges,

whatever that really is, are taxable! If your vendor calls the shipping charge

"shipping and handling" even it really is just shipping, then that entire line item

is taxable. As you can see none of this is easy to follow, let alone get vendors

from various states to do properly for your state as their state laws may tax them

differently.

Here are a few items for which no sales tax needs to be charged: missing or

damaged items; coat check; meeting room or hall rental; valet service (I'm not

sure how this is different from laundry and dry cleaning service which some

hotels call valet service which is taxable); and rented space (such as restaurants,

barber shop or car rental booths) except for the use of the equipment in it.

What about the exempt status of government agencies and non-profits? One of

the items we didn't do as well in as we thought we should because we had

worked on it so hard was tax exempt certificates from various charities and

government agencies. Sure, we knew the federal government was only tax

exempt when it was billed directly with a government credit card. Well, it isn't

so simple. It is tax exempt if it is the I.M.P.A.C. Visa card. If it is a federal

government Amex card its first four digits will be 3783. Now here is the trick -

If the fifth digit is a 7 or 8 charge sales tax but if it is 9 do not. If the fifth digit is

anything else I'm not sure what you do! And, try getting a hurried and harried

Guest Service Agent to comply with these rules.

Sales billed to and paid directly by tribal governments are sales tax exempt. If

someone tells you to bill the tribal government and then pays you with a

personal check you probably must pay the sales tax out of your receipts. My

interpretation of this is that if a management company is handling the tribe's

money it is not sales tax exempt as the information states, "paid by tribal

government", there is no reference to their agents. Of course if it is a local

occupancy tax that the state does not handle, then the state doesn't care.

State and local governments of all kinds must pay sales taxes. Local

governments are not required to pay local general sales taxes but may be

required to pay other special restaurant, liquor or lodging taxes imposed by

local governments. My theory is, if in doubt collect it and pay it to the state

rather than get in trouble.

Lodging is taxable when sold to non-profit organizations and school districts or

their personnel, even when billed directly to the school or non-profit

organization. A Certificate Of Exempt Status, Form ST-17, cannot be used to

purchase lodging exempt from sales tax. And, representatives of these

organizations, thinking they are entitled to tax exemption will be very "forceful"

with you staff.

Foreign Consular Officials receive special cards from the U.S. Department of

State's Office of Foreign Missions. The cards have the diplomat's picture and

other identification and clearly state on the back what exemptions they are to

receive. Read those and if they qualify note the I.D. number of the folio.

Now just to make sure you're on top of this, here is the test question. If a hotel

in Minneapolis buys supplies outside of Minneapolis, such as a hardware store

in Hennepin or Ramsey Counties, what is the sales tax impact on the hotel? The

hotel must keep track of all those purchases and remit 0.5% use tax to make up

for the higher sales tax in Minneapolis! Keeping detailed records of these

purchases is no small burden on a hotel. Trust me, the auditor found every 0.5%

owing for three years! Another example is if the owner of the hotel visits New

Hampshire which has no sales tax and buys a lovely decorative item for his

hotel on his credit card, thereafter getting reimbursed by the hotel for this

expense, the hotel must remit the 6.5% or 7.0% to the state.

So, what happened as a result of our audit? The auditor stated that their goal

was more one of education rather than collection and punishment or, as he put

it, it is a "kinder, gentler Revenue Department". While all our rentals for more

than 30 days were audited and found to be lacking a satisfactory lease

agreement, they offered us a deal. If we agreed not to appeal the amounts in the

audit they would charge us sales tax for only three of the 36 months on those 30

day rentals. We agreed and they picked the highest ones! We were still ahead.

In addition, of course, we were charged all the unpaid sales and use taxes on

purchases that were found (no deal there) and they found them all because every

single invoice we paid for three years was examined. We were charged interest

but no penalties because it was apparent that there was no intent to defraud the

state. Or as one of our office humorists said, "We were just stupid."

VAT AUDIT

A value added tax (VAT) is a form of consumption tax. From the perspective of

the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only

on the value added to a product, material, or service, from an accounting point

of view, by this stage of its manufacture or distribution. The manufacturer

remits to the government the difference between these two amounts, and retains

the rest for themselves to offset the taxes they had previously paid on the inputs.

The value added to a product by a business is the sale price charged to its

customer, minus the cost of materials and other taxable inputs. A VAT is like a

sales tax in that ultimately only the end consumer is taxed. It differs from the

sales tax in that, with the latter, the tax is collected and remitted to the

government only once, at the point of purchase by the end consumer. With the

VAT, collections, remittances to the government, and credits for taxes already

paid occur each time a business in the supply chain purchases products.

Overview

Maurice Lauré, Joint Director of the France Tax Authority, the Direction

générale des impôts, was first to introduce VAT on April 10, 1954, although

German industrialist Dr. Wilhelm von Siemens proposed the concept in 1918.

Initially directed at large businesses, it was extended over time to include all

business sectors. In France, it is the most important source of state finance,

accounting for nearly 50% of state revenues.

Personal end-consumers of products and services cannot recover VAT on

purchases, but businesses are able to recover VAT (input tax) on the products

and services that they buy in order to produce further goods or services that will

be sold to yet another business in the supply chain or directly to a final

consumer. In this way, the total tax levied at each stage in the economic chain

of supply is a constant fraction of the value added by a business to its products,

and most of the cost of collecting the tax is borne by business, rather than by the

state.

Value added taxes were introduced in part because they create stronger

incentives to collect than a sales tax does. Both types of consumption tax create

an incentive by end consumers to avoid or evade the tax, but the sales tax offers

the buyer a mechanism to avoid or evade the tax—persuade the seller that the

buyer is not really an end consumer, and therefore the seller is not legally

required to collect it.

The burden of determining whether the buyer's motivation is to consume or re-

sell is on the seller, but the seller has no direct economic incentive to collect it.

The VAT approach gives sellers a direct financial stake in collecting the tax,

and eliminates the problematic decision by the seller about whether the buyer is

or is not an end consumer.

Comparison with sales tax

Value added tax (VAT) in theory avoids the cascade effect of sales tax by

taxing only the value added at each stage of production. For this reason,

throughout the world, VAT has been gaining favour over traditional sales taxes.

In principle, VAT applies to all provisions of goods and services. VAT is

assessed and collected on the value of goods or services that have been provided

every time there is a transaction (sale/purchase). The seller charges VAT to the

buyer, and the seller pays this VAT to the government. If, however, the

purchaser is not an end user, but the goods or services purchased are costs to its

business, the tax it has paid for such purchases can be deducted from the tax it

charges to its customers. The government only receives the difference; in other

words, it is paid tax on the gross margin of each transaction, by each participant

in the sales chain.

In many developing countries such as India, sales tax/VAT are key revenue

sources as high unemployment and low per capita income render other income

sources inadequate. However, there is strong opposition to this by many sub-

national governments as it leads to an overall reduction in the revenue they

collect as well as a loss of some autonomy.

In theory sales tax is normally charged on end users (consumers). The VAT

mechanism means that the end-user tax is the same as it would be with a sales

tax. The main difference is the extra accounting required by those in the middle

of the supply chain; this disadvantage of VAT is balanced by application of the

same tax to each member of the production chain regardless of its position in it

and the position of its customers, reducing the effort required to check and

certify their status. When the VAT system has few, if any, exemptions such as

with GST in New Zealand, payment of VAT is even simpler.

A general economic idea is that if sales taxes are high enough, people start

engaging in widespread tax evading activity (like buying over the Internet,

pretending to be a business, buying at wholesale, buying products through an

employer etc.). On the other hand, total VAT rates can rise above 10% without

widespread evasion because of the novel collection mechanism. However,

because of its particular mechanism of collection, VAT becomes quite easily the

target of specific frauds like carousel fraud, which can be very expensive in

terms of loss of tax incomes for states.

Implementation

The standard way to implement a value added tax involves assuming a business

owes some fraction on the price of the product minus all taxes previously paid

on the good.

By the method of collection, VAT can be accounts-based or invoice-based.

Under the invoice method of collection, each seller charges VAT rate on his

output and passes the buyer a special invoice that indicates the amount of tax

charged. Buyers who are subject to VAT on their own sales (output tax),

consider the tax on the purchase invoices as input tax and can deduct the sum

from their own VAT liability. The difference between output tax and input tax

is paid to the government (or a refund is claimed, in the case of negative

liability). Under the accounts based method, no such specific invoices are used.

Instead, the tax is calculated on the value added, measured as a difference

between revenues and allowable purchases. Most countries today use the

invoice method, the only exception being Japan, which uses the accounts

method.

By the timing of collection, VAT (as well as accounting in general) can be

either accrual or cash based. Cash basis accounting is a very simple form of

accounting. When a payment is received for the sale of goods or services, a

deposit is made, and the revenue is recorded as of the date of the receipt of

funds—no matter when the sale had been made. Cheques are written when

funds are available to pay bills, and the expense is recorded as of the cheque

date—regardless of when the expense had been incurred. The primary focus is

on the amount of cash in the bank, and the secondary focus is on making sure

all bills are paid. Little effort is made to match revenues to the time period in

which they are earned, or to match expenses to the time period in which they are

incurred.

Accrual basis accounting matches revenues to the time period in which they are

earned and matches expenses to the time period in which they are incurred.

While it is more complex than cash basis accounting, it provides much more

information about your business. The accrual basis allows you to track

receivables (amounts due from customers on credit sales) and payables

(amounts due to vendors on credit purchases). The accrual basis allows you to

match revenues to the expenses incurred in earning them, giving you more

meaningful financial reports.

Registered

VAT registered means registered for VAT purposes, that is entered into an

official VAT payers register of a country. Both natural persons and legal entities

can be VAT registered. Countries that use VAT have established different

thresholds for remuneration derived by natural persons/legal entities during a

calendar year (or a different period), by exceeding which the VAT registration

is compulsory. Natural persons/legal entities that are VAT registered are

obliged to calculate VAT on certain goods/services that they supply and pay

VAT into a particular state budget. VAT registered persons/entities are entitled

to a VAT deduction under legislative regulations of a particular country. The

introduction of a VAT can reduce the cash economy because businesses that

wish to buy and sell with other VAT registered businesses must themselves be

VAT registered.

With a value added tax

With a 10% VAT:

The manufacturer pays $1.10 ($1 + ($1 × 10%)) for the raw materials,

and the seller of the raw materials pays the government $0.10.

The manufacturer charges the retailer $1.32 ($1.20 + ($1.20 × 10%)) and

pays the government $0.02 ($0.12 minus $0.10), leaving the same gross

margin of $0.20. ($1.32 – $0.02 – $1.10 = $0.20)

The retailer charges the consumer $1.65 ($1.50 + ($1.50 × 10%)) and

pays the government $0.03 ($0.15 minus $0.12), leaving the same gross

margin of $0.30 ($1.65 – $0.03 – $1.32 = $0.30).

The manufacturer and retailer realize less gross margin from a percentage

perspective.

Note that the taxes paid by both the manufacturer and the retailer to the

government are 10% of the values added by their respective business

practices (e.g. the value added by the manufacturer is $1.20 minus $1.00,

thus the tax payable by the manufacturer is ($1.20 - $1.00) × 10% =

$0.02).

With VAT, the consumer has paid, and the government received, the same as

with sales tax. The businesses have not incurred any tax themselves. Their

obligation is limited to assuming the necessary paperwork in order to pass on to

the government the difference between what they collect in VAT (output tax, an

11th of their sales) and what they spend in VAT (input VAT, an 11th of their

expenditure on goods and services subject to VAT). However they are freed

from any obligation to request certifications from purchasers who are not end

users, and of providing such certifications to their suppliers.

On the other hand, they incur increased accounting costs for collecting the tax,

which are not reimbursed by the taxing authority. For example, wholesale

companies now have to hire staff and accountants to handle the VAT

paperwork, which would not be required if they were collecting sales tax

instead. If you calculate the added overhead required to collect VAT, businesses

collecting VAT have less profits overall than businesses collecting sales tax.

The advantage of the VAT system over the sales tax system is that under sales

tax, the seller has no incentive to disbelieve a purchaser who says it is not a

final user. That is to say the payer of the tax has no incentive to collect the tax.

Under VAT, all sellers collect tax and pay it to the government. A purchaser has

an incentive to deduct input VAT, but must prove it has the right to do so,

which is usually achieved by holding an invoice quoting the VAT paid on the

purchase, and indicating the VAT registration number of the supplier.

Limitations of VAT

A VAT, like most taxes, distorts what would have happened without it. Because

the price for someone rises, the quantity of goods traded decreases.

Correspondingly, some people are worse off by more than the government is

made better off by tax income. That is, more is lost due to supply and demand

shifts than is gained in tax. This is known as a deadweight loss. If the income

lost by the economy is greater than the government's income; the tax is

inefficient.

The entire amount of the government's income (the tax revenue) may not be a

deadweight drag, if the tax revenue is used for productive spending or has

positive externalities – in other words, governments may do more than simply

consume the tax income. While distortions occur, consumption taxes like VAT

are often considered superior because they distort incentives to invest, save and

work less than most other types of taxation – in other words, a VAT discourages

consumption rather than production.

WEALTH AUDIT

A wealth tax is generally conceived of as a levy based on the aggregate value of

all household holdings actually accumulated as purchasing power stock (rather

than flow), including owner-occupied housing; cash, bank deposits, money

funds, and savings in insurance and pension plans; investment in real

estate and unincorporated businesses; and corporate stock, financial securities,

and personal trusts.

Some governments require declaration of the tax payer's balance sheet (assets

and liabilities), and from that ask for a tax on net worth(assets minus liabilities),

as a percentage of the net worth, or a percentage of the net worth exceeding a

certain level. The tax is in place for both "natural" and in some cases legal

"persons".

In France, the net worth tax on "natural persons" is called the "solidarity tax on

wealth". In other places, the tax may be called, or be known as, a "Capital Tax",

an "Equity Tax", a "Net Worth Tax", a "Net Wealth Tax", or just a "Wealth

Tax".

Some European countries have abandoned this kind of tax in the recent

years: Austria, Denmark, Germany (1997), Sweden (2007), andSpain (2008).

On January 2006, wealth tax was abolished in Finland, Iceland (but temporarily

re-introduced in 2010) and Luxembourg. In other countries,

like Belgium or Great Britain, no tax of this type has ever existed, although

the Window Tax of 1696 was based on a similar concept.

In the United States, property taxes are annual taxes on the market value of real

estate (ranging from about 0.4% in Alabama to 4% inNew Hampshire) assessed

both locally and by state governments to pay for local schools, as well as other

services and infrastructure of various kinds. Local jurisdictions rely upon

property taxes because real estate cannot be moved out of a jurisdiction,

whereas paper wealth, income, etc. are more easily moved to other localities

where they may be taxed less or not at all.

Over time, the property taxes add up significantly, such that over a generation

of 25 years, a family may pay, with annual increases forinflation, up to 50% of a

property's market value in taxes (though over the same period of time, the land

value of the family's home could have increased substantially as well). Heavy

property taxation and especially sudden, large increases in appraised valuations

caused by infrequent or inaccurate appraisals are major causes of local political

discontent in jurisdictions throughout the United States and in other

countries Because property taxes have often been labeled unfair (other assets

such as CDs, equities, or partnerships are taxed rarely, if at all), some

properties, such as certain farms or forest land, may have reduced valuations.

However, unlike the value of most other assets, the value of land is largely a

function of government spending on services and infrastructure (a relationship

demonstrated by economists in the Henry George Theorem). This relationship

argues that the land value portion of property taxes, at least, satisfies the

"beneficiary pay" criterion of tax fairness.

Non-profit (especially church) and government-owned properties are often

exempt from property taxes.

Arguments in favor

There are four lines of argument in favor of a tax based on household wealth.

The claims are that such a wealth tax improves thefairness of most tax systems,

effectively raises government revenue, can further economic growth, and could

have desirable secondary, social effects by reducing economic inequality.

Fairness: According to the "beneficiary pay" criterion of tax fairness, a tax on

property rights can be seen as a use fee. Specifically, protection of property

rights is a primary purpose of government. Holders of property rights enjoy the

existence of government more than do those who hold no property rights.

Coupled with market-driven assessment (bids in escrow, for example) and

deferment of tax liability at interest equal to long term government debt rates,

the "beneficiary pay" criterion of "fairness" contrasts with the "ability to pay"

criterion of "fairness" which is more expedient than essentially reciprocal.

Revenue: In 1999, Donald Trump proposed a once off 14.25% wealth tax on the

net worth of individuals and trusts worth $10 million or more. Trump claimed

that this would generate $5.7 trillion in new taxes, which could be used to

eliminate the national debt.[3]

Economic Growth: A wealth tax that decreases other tax burdens, such as

income, capital gains, sales, value added and inheritance, increases the time

horizon for investment and can increase the return on investments over that

time. The increased time horizon of investment results from the competition for

investment between the risk free asset of modern portfolio theory, and

commercial assets. The higher return on investment results from the removal of

taxes on profits. More economic equality has been correlated with higher levels

of innovation.

Social Effects: By unburdening the poor and middle class of taxation, while

stimulating investment in commercial assets that create demand for labor, more

financial resources in the hands of the poor and middle class would reduce their

reliance on government delivery of social goods, such as improved educational

opportunities for their children. This would promote social mobility, mean more

citizens reach their full potential of productivity, and so improve the economy.

Increased government revenue from a wealth tax could be used to promote

public investment in services like education, basic science research, and

transportation infrastructure, which in turn improve economic efficiency.

Increased government revenue from a wealth tax coupled with restrained

government spending would reduce government borrowing and so free more

credit for the private sector to promote business. A strong, steadily growing

economy could in turn increase tax revenues further, allowing for more deficit

reduction, and so on in a virtuous cycle.]

Arguments against

A 2006 article in The Washington Post titled "Old Money, New Money Flee

France and Its Wealth Tax" pointed out some of the harm caused by France's

wealth tax. The article gave examples of how the tax caused capital flight, brain

drain, loss of jobs, and, ultimately, a net loss in tax revenue. Among other

things, the article stated, "Éric Pichet, author of a French tax guide, estimates

the wealth tax earns the government about $2.6 billion a year but has cost the

country more than $125 billion in capital flight since 1998."

Due to valuation and accounting difficulties, wealth taxes systems have high

management costs, for both the taxpayer and the administrating authorities,

compared to other taxes. Per one study in the Netherlands the aggregated cost of

the tax’s yield was roughly five times that of income tax.

SERVICE TAX AUDIT

The country is passing thorough a phase where the need of transparency at all

levels appears to be explicitly essential. There is a trust deficit at all levels, be it the

Civil society, public at large or government machinery. The assessees are entrusted

with a self-assessment system wherein the tax paid by them is treated as true and

fair. There is a trust deficit here too as such the Service tax department apprehends

that there might be instances where either assessee deliberately avoids and evades

tax or a case where ignorance of laws leads to non-payment of Service Tax. In both

the cases government loses its revenue. To prevent such leakage of revenue, one of

the basic tools employed by department is Audit of the assessee. The phrase

‘departmental audit’ instills fear in the mind of the assessee. Smaller the assessee;

higher the fear of facing audit. The Finance minister has announced in Budget 2011

that small assessee would be relieved from formalities of audit. Accordingly, such

benefit was forwarded vide D.O.F. No. 334/3/2011-TRU dated : 28.02.2011; the

said circular clarified that individual and sole proprietor assessees with a turnover

upto Rs 60 lakhs shall not be subject to audit. It is pertinent to note here that such

relaxation only for individuals and it is not extended to Partnerships, Companies,

Trusts, etc.

The department carries out audit of the assessee based on guidelines provided in

Audit Manual. The audit manual outlines procedures to be adopted for conduct of

audit. The recent  states that, the existing Service Tax Audit Manual has been in

use since 2003. With rapid change in service tax law over the years, growth in

service tax categories, assessee base as well as revenue, there was desperate need

felt to update the manual. The need for professionalism has been felt by the

department and therefore new audit manual drives towards assessee friendly

approach. According to the new Audit Manual, while conducting audit, the Auditor

(departmental officer) is required to carry out his duties with utmost sincerity,

integrity and diligence. As per this new audit guideline the Auditor has to aim at

detection of non-compliance, procedural irregularities and leakage of revenue due

to deliberate action or ignorance on the part of the taxpayer. The Auditor should

keep in view the prevalent transactional and professional practices, as also the

practical difficulties faced by a taxpayer. Therefore, the Auditor should take a

balanced, fair and rational approach while conducting the audit. During the course

of the audit, if any purely technical infractions, without any revenue implications,

are noticed, the Auditor is expected to exercise sense of proportion and should

guide the taxpayer in correcting the procedures.

Government's objective is to collect correct amount of tax levied under the Service

Tax law in a cost-effective, responsive, fair and transparent manner and also to

maintain public confidence in the integrity of the tax system. The audit should be

participative and a fact finding mission, as against a fault finding exercise, with the

objective of guiding the taxpayer while at the same time guarding against any

leakage of revenue.

The Department expects that the Auditor should recognize the rights of the

taxpayers, such as the right to impartial and uniform application of law; the right to

be treated with courtesy and fairness, the right to information permitted by law and

the right to confidentiality of information disclosed only for Departmental audit.

Auditor should use a constructive and tactful approach to gain the goodwill and

confidence of the taxpayer. Further it is directed that confidentiality should be

maintained in respect of sensitive and confidential information furnished to an

Auditor during the course of audit. All records submitted by the service provider to

the audit parties, in electronic or manual format, should be used only for

verification of levy of service tax and tax compliance. These shall not be used for

any other purposes without the express written consent of the taxpayer. Further, the

officers should not disclose to outsiders any particulars learnt by them in their

official capacity.

Thus, auditor is expected to ensure that audit is carried out in systematic manner,

with optimum utilization of time and resources. Further auditor has to take care that

the rights of the assessee are not violated in guise of audit. This is one step which

will help decreasing the trust deficit. The department expects that attitude of the

auditor should be friendly and he should guide the service tax payers for better

compliance rather than creating futile litigations.

The particulars of its organization, functions and duties:

Service Tax was introduced in India in 1994 by Chapter V of the Finance Act,

1994.  The Central Board of Excise & Customs (CBEC), Department of Revenue,

Ministry of Finance, deals with the task of formulation of policy concerning levy

and collection of Service Tax. The CBEC is assisted by the Directorate of Service

Tax located at Mumbai.  The Service Tax is being administered by various Central

Excise Commissioner spread across the country.  The jurisdiction of each

Commissionerate has been specified vide Notf. No. 14/2002-CE(NT) as amended

from time to time.  However there are six Commissioner located at metropolitan

cities of Delhi, Mumbai, Kolkata, Chennai, Ahmedabad and Bangalore which deal

exclusively with work related to Service Tax.  These Commissionerates are

supervised by the jurisdictional Chief Commissionerate of Central Excise.  Each

Commissionerate consists of 3 to 5 divisions with each division consisting of a

number of range offices.The Commissioner is headed by the Commissioner who is

the supervisory head and final decision making authority with regard to any

disputes arising regarding the levy of Service Tax on any service. The

Commissioner is assisted by the Joint/Additional Commissioner.  Further, the

Commissioner consists of division headed by the Asstt./Dy.Commissioner.  Each

range office of the division is looked after by the Superintendent assisted by the

Inspector. Refund/Rebate- The assessee may also apply for refund wherever he

paid the service tax more than the tax assessed or payable.  Such refund can be

made in accordance with the provisions of Section 11B of Central Excise Act, 1994

as made applicable to Service Tax by virtue of Section 83 of the Finance Act,

1994.  The Asstt./Dy.Commissioner of the jurisdictional division office is the

authority to whom the claim for refund is to be filed and is also the sanctioning

authority.  However, all claims above Rs. 5 lakhs are required to be pre-audited and

all refund claims are required to be post audited by the Commissioner.

Audit-   Audit of the Service Tax assessees is being conducted as per norms

prescribed by the Department.  A service tax audit cell is functioning headed by the

Joint/Addl. Commissioner under the overall supervision of the Commissioner.  The

audit of all units is being conducted by a team of officers comprising of

Superintendents and Inspectors. The norms are specified in the Act. The rules,

regulations, instructions, manuals and records held by it or under its control or used

by its employees for discharging its functions.

Service Tax Rate

The Current of Service Tax Rate is 12%

Education Cess @ 2% and Senior and Higher Education Cess @ 1% are also liable

to be payable on the above Service Tax Rate.

Service Tax Rate                                                 = 12%

(+) Education Cess @ 2%                                      = 0.2%

(+) Senior & Higher Education Cess @ 1%                = 0.1%

Effective Service Tax Rate                                     = 12.36%

Service Tax is required to be deposited on a Monthly/Quarterly basis. The Service

tax can be paid either by manually depositing in the Bank or through Online

Payment of Service Tax. In case, of excess payment of Service Tax by the Service

Provider with the Government, the Service Provider can either adjust the excess

amount paid or can claim Refund of the Excess Tax deposited. Refer: Service Tax

Refund.

Case Study on Service Tax

Let’s understand via simple case, If a Chartered Accountant, provides services in

the capacity of auditor to ABC Ltd. and the audit fees is Rs. 1,00,000 then the

service tax chargeable will be 12.36% on Rs. 1,00,000 i.e. INR 12,360. Hence, the

total billing to be done by CA to ABC Ltd will be INR 1, 12,360.

The segregation of Value of Service Provided (i.e. Rs. 1,00,000)and the Service

Tax payable thereon (i.e. Rs. 12,360) shall be separately showing on the Invoice.

In case, no service tax is separately charged in Invoice or the service receiver

makes partial payment then the service tax shall be proportionately taken to be

amount as on the gross amount received by the service provider for the taxable

service provided or to be provided by him.

CUSTOMS TAX AUDIT

Custom Duty is imposed under the Indian Customs Act formulated in 1962 by

the Constitution of India under the Article 265, which states that “no tax shall

be levied or collected except by authority of law. So, theIndian Custom Act was

introduced that allow the Central Government to collect the taxes under the

name of Custom Duty. Custom Duties are usually levied with ad valorem rates

and their base is determined by the domestic value 'the imported

goods calculated at the official exchange rate. Similarly, export duties are

imposed on export values expressed in domestic currency.

Export duties are levied occasionally to clear up excess profitability

in international price of goods in respect of which domestic prices may be low

at given time. But the concept of import duty is wide and almost universal,

except for a few goods like food grains, fertilizer, life saving drugs and

equipment etc.

The Indian Customs Duties are major source of revenue for the Union

Government and constitute around 30% of its  tax revenues. Together

with Central Excise duties, the contribution amount to nearly three-fourth of

total tax revenue of the Union Government.

History of Indian Customs

The Custom Duty in its present form dates back to 1786, when Bruisers formed

the first Revenue Board in Calcutta. In 1808, a new Trade Board was introduced

for export and import of goods from India. Once again, in 1859 Customs Duties

Act was introduced in which provincial import duties were replaced by uniform

Tariff Act and was applicable to all Indian territories within the country.

In the subsequent year several changes in the Custom Policy took places and are

as follow:

Sea Customs Act was passed by Government in 1878.

Indian Tariff Act was passed in 1894.

Air Customs having been covered under the India Aircrafts Act of 1911,

Land Customs Act was passed in 1924.

Objectives of Custom Duties

The customs duty is levied, primarily, for the following purpose:

Restricting Imports for conserving foreign exchange.

Protecting Indian Industry from undue competition.

Prohibiting imports and exports of goods for achieving the policy objectives of

the Government.

Regulating export.

Co-coordinating legal provisions with other laws dealing with foreign

exchange such as Foreign Trade Act, Foreign Exchange Regulation Act,

Conservation of Foreign Exchange and Prevention of Smuggling Act, etc.

Mode of Levy of Customs Duty

Basically there are three modes of imposing Customs Duty:

1. Specific Duties: - Specific custom duty is a duty imposed on each and

every unit of a commodity imported or exported. For example, Rs.5 on

each meter of cloth imported or Rs.500 on each T.V. set imported. In this

case, the value of commodity is not taken into consideration.

2. Advalorem Duties: Advalorem custom duty is a duty imposed on the total

value of a commodity imported or exported. For example, 5% of F.O.B.

value of cloth imported or 10% of C.LF. value of T.V. sets imported. In

case of Advalorem custom duty, the physical units of commodity are not

taken into consideration. 

3. Compound Duties: - Compound custom duty is the combination of

specific and advalorem custom duties. In this case, the quantities as well

as the value of the commodity are taken into consideration while

computing tariff. For example, 5% of F.O.B. value plus, 50 paisa per

meter of cloth imported.

STAMP DUTY AND EXCISE TAX

AUDIT

An excise or excise tax (sometimes called a duty of excise special tax) is

commonly referred to as an inland tax on the sale, or production for sale, of

specific goods; or, more narrowly, as a tax on a good produced for sale, or sold,

within a country or licenses for specific activities. Excises are distinguished

from customs duties, which are taxes on importation. Excises are inland taxes,

whereas customs duties are border taxes.

An excise is considered an indirect tax, meaning that the producer or seller

who pays the tax to the government is expected to try to recover the tax by

raising the price paid by the buyer (that is, to shift or pass on the tax). Excises

are typically imposed in addition to another indirect tax such as a sales

tax orvalue added tax (VAT). In common terminology (but not necessarily in

law) an excise is distinguished from a sales tax or VAT in three ways: (i) an

excise typically applies to a narrower range of products; (ii) an excise is

typically heavier, accounting for higher fractions (sometimes half or more) of

the retail prices of the targeted products; and (iii) an excise is

typically specific (so much per unit of measure; e.g. so many cents per gallon),

whereas a sales tax or VAT isad valorem, i.e. proportional to value (a

percentage of the price in the case of a sales tax, or of value added in the case of

a VAT).

DEFINITION

The word excise is derived from the Dutch accijns, which is presumed to come

from the Latin accensare, meaning simply "to tax".

Regulatory and legal definitions of 'excise' vary by country. For example:

In India, an excise is described as an indirect tax levied and collected on the

goods manufactured in India.

In the United Kingdom, HM Revenue and Customs lists "alcohol,

environmental taxes, gambling, holdings & movements, hydrocarbon

oil, money laundering, refunds of duty, revenue trader's records, tobacco duty,

and visiting forces" as being subject to excise. [1] Some of the listed items are

not goods, but rather services.

The Australian Taxation Office describes an excise as "a tax levied on certain

types of goods produced or manufactured in Australia. These... include alcohol,

tobacco and petroleum and alternative fuels".[2]

In Australia, the meaning of "excise" is not merely academic, but has been the

subject of numerous court cases. The High Court of Australia has repeatedly

held that a tax can be an "excise" regardless of whether the taxed goods are of

domestic or foreign origin; most recently, in Ha v New South Wales (1997), the

majority of the Court endorsed the view that an excise is "an inland tax on a

step in production, manufacture, sale or distribution of goods", and took a wide

view of the kind of "step" which, if subject to a tax, would make the tax an

excise.

WHAT IS STAMP DUTY?

Stamp Duty is a tax on documents relating to immovable properties, stocks or

shares. Examples of such documents are :

1) Lease / Tenancy Agreements

These are documents that are prepared and signed when you rent a property.

Stamp Duty is calculated on the actual rent or market rent whichever is higher.

The person who leases or rents the property (lessee or tenant) is responsible for

paying Stamp Duty.

2) Acceptance to Option to Purchase / Sale & Purchase Agreements

These are documents that are prepared and signed when you buy or sell your

property. Stamp Duty is payable on the actual price or market price whichever

is higher.  The buyer is responsible for paying Buyer’s Stamp Duty.  Where

Seller’s Stamp Duty is applicable, the seller is responsible for paying Seller’s

Stamp Duty.

3) Mortgages

These are documents that are prepared and signed when you obtain a loan from

banks for your property purchase.  Stamp Duty is payable on the loan amount.

The person who obtains the loan (mortgagor) is responsible for paying the

Stamp Duty on the mortgage document.

4) Share Transfer Documents

These are documents that are prepared and signed when you buy or sell shares.

Stamp Duty is payable on the actual price or net asset value of the shares

whichever is higher. The person who buys the shares (transferee) is responsible

for paying Stamp Duty on the Share Transfer document.

If you have a document that relates to more than one matter, it will be charged

separately for each matter. This means that more than one set of Stamp Duty is

to be paid on that document.

Examples include :

1. Sale and lease-back of property

2. Sale and buy-back of property

3. Lease with a contract for sale of fixtures

4. An instrument whereby more than one property is leased to the same tenant

and where the terms and conditions for the lease of each of the properties

are different

WHY SHOULD STAMP DUTY BE PAID?

It is an offence to use a document which stamp duty has not been paid on.   If

IRAS detects a document where stamp duty has not been paid, a penalty of up

to 4 times will be imposed.

In addition, a document where Stamp Duty is paid can be admitted as evidence

in the court in cases of disagreements.

DOCUMENTS REQUIRED TO PAY STAMP DUTY

Examples of documents where Stamp Duty is not payable :

Service contracts not in connection with the granting of a lease

Deed of Appointment of Trustees - where it does not involve vesting of interest

Loan agreements not relating to properties and shares

Settlement not relating to properties and shares such as cash settlement

Letters of Guarantee / Indemnity

Statutory Declaration, Affidavit

Assignment of intangible assets such as Goodwill, Trademark and Patents

Assignment of book debts / receivables (eg. sale proceeds)

Promissory Note

Letters of Appointment / Revocation of Power of Attorney

Will

Hire Purchase Agreement

Charter-party

Declaration to change from Joint Tenancy to Tenancy in Common of equal

shares

Declaration to hold as Joint Tenants by Tenants in common in equal shares

WHEN SHOULD STAMP DUTY BE PAID?

Once the document is signed and dated, Stamp Duty needs to be paid :

1. Within 14 days after the date of the document if the document is signed in

Singapore or

2. Within 30 days after the date of its receipt in Singapore if the document is

signed overseas