Accounting Service
An important segment of doing business for each entrepreneur is quality accounting which ensures business activities complying with law regulations as well as a good information source for the company management. The tax aspect is also very important as it ensures tax efficiency in terms of lower tax rates in line with prescribed regulations. There is a famous quote: The difference between a tax evasion and a tax avoidance is the thickness of prison walls. Keeping in mind contemporary ways of doing business and a technological progress, we try to provide for our clients an efficient service by using technology in terms of communication as well as in terms of business solutions that we use in our own activities. We help you maintain good quality business records by: providing advice on how to create, file and manage the required accounting documents such as sales invoices, statements and payments setting up an accounting system where the transactions are recorded and reports o
Read MoreDirect Tax
What is a 'Direct Tax ' A direct tax is paid directly by an individual or organization to an imposing entity. A taxpayer, for example, pays direct taxes to the government for different purposes, including real property tax, personal property tax, income tax or taxes on assets. Direct taxes are different from indirect taxes, where the tax is levied on one entity, such as a seller, and paid by another, such as a sales tax paid by the buyer in a retail setting. BREAKING DOWN 'Direct Tax ' Direct taxes are based on the ability-to-pay principle. This principle is an economic term that states that those who have more resources or earn higher income should pay more taxes. The ability to pay taxes is a way to redistribute the wealth of a nation. Direct taxes cannot be passed onto a different person or entity; the individual or organization upon which the tax is levied is responsible for the fulfillment of the full tax payment. However, this sometimes acts as a negative. Direct taxes, especially in a tax bracket system, can become a disincentive to work hard and earn more money, because the more money a person earns, the more taxes he pays. The History of Direct Taxes The modern distinction between direct taxes and indirect taxes came about with the passing of the 16th Amendment in 1913. Prior to the 16th Amendment, tax law in the United States was written so that any direct taxes were required to be directly apportioned to the population. For example, a state with 75% of the population in relation to another state would only be required to pay direct taxes equal to 75% of the larger state. This antiquated verbiage made it so many direct taxes, such as personal income tax, could not be imposed by the federal government due to apportionment requirements. However, the passing of the 16th Amendment changed the tax code and allowed for the levying of numerous direct and indirect taxes. An Example of Direct Taxes Corporate taxes are a good example of direct taxes.
Read MoreIndirect Tax
What is an 'Indirect Tax' An indirect tax is a tax that is paid to the government by one entity in the supply chain, but it is passed on to the consumer as part of the price of a good or service. The consumer is ultimately paying the tax by paying more for the product. An indirect tax is shifted from one taxpayer to another. BREAKING DOWN 'Indirect Tax' Import duties, fuel, liquor and cigarette taxes are all considered examples of indirect taxes. Indirect taxes are defined by contrasting them with direct taxes. In the case of direct taxes, the person immediately paying the tax is the person that the government is seeking to tax. Income tax is the clearest example of a direct tax, since the person earning the income is the one immediately paying the tax. Admission fees to a national park is another clear example of direct taxation. Examples of Indirect Taxes The most common example if an indirect tax is import duties. The duty is paid by the importer of a good at the time it enters the country. If the importer goes on to resell the good to a consumer, the cost of the duty in effect is hidden in the price that the consumer pays. The consumer is likely to be unaware of this, but he will nonetheless be indirectly paying the import duty. Essentially, any taxes or fees imposed by the government at the manufacturing or production level is an indirect tax. In recent years, many countries have imposed fees on carbon emissions to manufacturers. These are indirect taxes, since their costs are passed along to consumers. Sales taxes can be direct or indirect. If they are imposed only on the final supply to a consumer, they are direct. If they are imposed as value-added taxes along the production process, then they are indirect. Regressive Nature of Indirect Taxes Indirect taxes are essentially fees that are levied equally upon taxpayers, no matter their income. As such, they are regressive taxes. For example, the import duty on a television imported from Japan will be the sa
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Biswas Nirmal & Co. is a chartered Accountants firm established in 2016 and has a team of over 25 professional and support staff and is one of the top reputed professional firm offering professional accounting, auditing, taxation, vat, secretarial services, consulting and other specialist services in Bangladesh. The firm is led by Nirmal Chandra Biswas, LL.B FCA who is the Proprietor & CEO who has a wide range of experiences in all the matters now dealt in .
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