What is the framework of audit in China?

How to calculate the consumption tax?

CT is calculated by multiplying the sales value of the taxable items with applicable rate, or by multiplying the total sales volume by the applicable fixed amount of each taxable unit. Sales value should comprise the total cost and additional charges and fees received for the sales of the taxable consumer goods exclusive VAT.

What are the taxable items and tax rates of CT?

No. Item Tax Rate   1   Tobacco 1. Cigarettes (1) Category A Cigarettes (2) Category B Cigarettes 2. Cigars 3. Cut tobacco       45%+ RMB 0.003 /per one 30%+ RMB 0.003 /per one 25% 30% 2   Alcoholic drinks and alcohol 1. white spirits 2. yellow spirits 3. beer (1) Category A […]

challenges of internal control if internal control

What is consumption tax (CT)?

CT is a turnover tax levied on manufacturers and importers of specific luxury goods. The objectives of levying consumption tax consist of three aspects: a)Increase the fiscal revenue without significant negative effect on overall market demands as the demands for goods subject to CT are relatively inelastic b)Reallocate social wealth since it is imposed on […]