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What does of point of taxation mean?

What does of point of taxation mean?

What does of point of taxation mean?

Chiranjibi Chapagain Aug. 29, 2018

Point of Taxation refers to a situation where a transaction of either goods or service is to be taxed. Under the present indirect system, there are different points of taxation explained as below:

Point of Taxation under Excise Duty

Under the Excise Act, excise duty is levied on manufacturing of goods, however the liability to pay the tax comes on the removal of excisable goods from the factory. Hence no duty shall be collected until or unless goods are removed from the factory.

Time of Supply of Goods under GST

Section 12 of Proposed GST Law provides the point of taxation i.e. the time of supply of when a taxable person shall be liable to pay tax to Government. 

Where, Section 7 “Meaning of Supply” prescribes “What is tax is imposed, time of supply decides “When this tax is imposed” If the events have not occurred, then the levy of tax is postponed until the taxable events occur.

What does of point of taxation mean?

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