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How to excise formula settlement

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in regards to our excise tax this is another of the mouth calculations not extraordinarily difficult but very specific when youre calculating excise tax I want you to understand that it is a state tax in other words the state of North Carolina a state tax on the conveyance of real property and with sellable property its a sales tax and the fact is that the excise tax is always paid by the seller its a seller debit on the settlement statement now having said that let me remind you of the formula for excise tax excise tax is our $1.00 per 500 of sale price $1.00 per 500 the sale price if the sale price is evenly divisible by $500 this is a very simple problem for you a sale price of $200,000 you would simply divide 200,000 by 500 and you would see that the excise tax is $400 and of course thats a $400 debit to the itself very very simple well of course nothing can be completely simple so say that North Carolina does this technically excise tax or charge that $1.00 per 500 a sale pri

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What is Section 156 of the ETA?

Section 156 of the Excise Tax Act (the Act) provides an election that permits corporations and Canadian partnerships (as defined in that section), to treat certain taxable supplies between them as having been made for no consideration, if the requirements for the election are satisfied.

What is 169 4 of eta?

Subsection 169(4)(a) of the ETA establishes the information required to support the ITC claim and determine the amount, including information prescribed under the Input Tax Credit Information (GST/HST) Regulations.

What is the best example of an excise tax?

Key Takeaways. An excise tax is similar to a sales tax, but its levied only on certain products or services. The most common excise taxes are imposed on tobacco, alcohol, and gasoline.

Is GST calculated on excise tax?

The GST is calculated on the aggregate value of the goods for the purposes of customs duties plus all duties (which include assessments made under the Special Import Measures Act) and taxes (including excise taxes but excluding the GST) payable on those goods imported into Canada.

What is Canadian excise tax?

An excise duty is also an inland tax in the territory. Excise duties are imposed in Canada on spirits, wine, beer, and tobacco products. The Government Canada imposes excise duty on alcohol and spirits (including wine and beer) under the Excise Act and the Excise Act 2001.

What is the main purpose of excise tax?

Excise taxes can be used to price an externality or discourage consumption of a product that imposes costs on others. They can also be employed as a user fee to generate revenue from people who use particular government services, revenue which should be used to maintain that government service.

What is the Canadian GST law?

The tax is a 5% tax imposed on the supply of goods and services that are purchased in Canada, except certain items that are either exempt or zero-rated: For tax-free i.e., zero-rated sales, GST is charged by suppliers at a rate of 0% so effectively there is no GST collected.

What is an excise tax simple definition?

In general, an excise tax is a tax is imposed on the sale of specific goods or services, or on certain uses. Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services.

What is an excise tax effect?

In the short run, an excise tax increases the price of the product, albeit by less than the full amount of the tax, and the price burden is shared by both the producers and the consumers. The exact effect depends on the elas- ticities of demand and supply for the product.

What is an example of an excise tax?

What is an example of excise tax? The federal gas tax is an excise tax. The US federal government charges 18.4 per gallon of gasoline and 24.4 per gallon for diesel fuel. These excise taxes stay the same regardless of other price inputs and are baked into the advertised price.

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