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It is recommended to think of the GST or Goods and Service Tax as a tax or duty which is collected on consumption of goods or services. Its rationale is that the tax should not be distinguished exclusively among goods and services. Instead GST is a tax on the purchase activities, or consumption activities. In GST, there is no separate tax (or duty) levied on the commodities and complementary services. The GST is a central tax which is levied on the total value of the transactions, irrespective of the value of the individual items. For example, if a taxi charges you Rs 1000 for a trip, the GST is levied on the total value, or Rs 1000. Similarly, purchases made in a retail outlet, through the retail trade supply chain, which is GST inclusive are charged tax at 18 percent or an equivalent rate. The payment that the retailer makes to the supplier, i.e. the GST paid by the retail seller to the manufacturer is included in the purchase amount and is not considered a part of the tax. As an example, while the taxi service charges Rs 1000, the GST of 18% is charged on Rs 1100.
In China, the service sector accounts for 30% of the GDP (in US dollars); 90%+ of all employment; and 60% of total retail trade. There are over 1.2 billion people employed in the service sector, and the GDP growth in the service sector in China has been accelerating 6%, with export growth of 10.2% and import growth of 13.5%. IT service exports (computing, telecommunications and ICT services) increased 64% from 1999 to 2009, reaching $12 billion, and accounting for 25.1% of all IT exports. IT services include information technology services, business and financial services, and infrastructure services. The top degree designations in IT services include senior software engineer, senior specialist, and senior engineer. d2c66b5586