Sales Tax And Other Liabilities For Professions With No Boundaries.
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With the advent of online businesses and internet, the customer and the company has become global. A firm may have a physical presence in one state but sell in many others. Earlier, sales tax was all about physical presence, and companies paid for it in the state they existed in. Today, while trades understand the obligation to collect sales tax in their home state, it is easy to skip the duty to collect it in other states too.
Let’s pick the example of trade shows to comprehend the scenario better. Let’s say a business executive puts up a stall for your firm at a trade show in another state. In such a case, the business could be obligated to pay taxes in that particular state. To grasp whether tax has to be paid or not, you need to have the answer to 3 vital questions.
• Does the business sell anything at the trade shows?
• Does attending the trade show lead to sales in the future?
• What is the amount of time spent at trade shows in other states?
6 Comments
Answering these questions can tell you if the service is taxable or not. At a broader level, it means finding out if the service provided or to be provided to an exhibitor, by the organiser of the business exhibition is taxable or not.
Getting caught unaware of tax laws and pleading ignorance does lead to IT department forgiving errors. A better way to be prepared is to get professional tax Registration help by our vakilsearch.
As experts, we are aware of all the rules and regulations related to trade shows and other professional services and their tax duties. We help you fulfil your tax obligation to the T in the shortest time possible and without any errors.
Your comment is on-point and very relevant, team Vakil Search. It is always better to be safe than sorry. We appreciate the professional services you offer to make professional tax registration easy. We understand that you are equipped with a team of legal experts to assist your clients. Thanks for the valuable inputs.
The post saved us from making the most egregious mistake. We attended the first trade show as a company recently and didn’t even consider the sales tax. Thankfully, we read the article before leaving and did a quick research on GST applicable in such exhibitions and shows.
After the implementation of GST, understanding the rules of professional tax got a little easier, but I was still at sea on how it affected my professional as an exhibition manager. After searching the net for weeks, I called VakilSearch and got a quick, concise answers to all my queries!
Anyone who has been worried about professional tax or tax applicable as service providers of shows and exhibitions, we advise you to read up on this post. It explains the vital questions that must be answered before starting the tax registration process and filing the ITR online.
As the sole owner of a start-up that earns only through trade shows, being aware of the tax liabilities was crucial. I’d like to writer for the well thought out post because it helped me grasp the concept better and get in touch with VakilSearch who have proved to be invaluable.