TAX Consultant

A person who is specialist in tax laws and is an expert in financial matters is known as a tax consultant. In some nations tax consultants are required to verify the balance sheets of firms so that it doesn’t cross certain limit.
Tax consultants are required for following
reasons:

• Teach and give basics about tax
• Help individuals to minimize taxation
  
• Accounting to reduce the tax of a person.
• In some cases the tax knowledge about the salaried employee
• Tax on clubbing of income

There are various categories of tax consultants. Depending on the tax applied on various things various tax consultants or tax consultant firms are available. The various kind of tax consultants are as follows:

1. Direct tax consultant:

If a person pays a certain amount to the government directly which was imposed on him then that tax is called direct tax. The various type of direct tax is income tax, corporate tax, transfer tax, gift tax, etc. This is a compulsion for all citizens because the amount paid is used by the residential government. The various tax consultants help in the calculations and tax planning for this kind of tax.

2. Indirect tax consultant:

An indirect tax is collected by the intermediary from a person who has used the services of the intermediary. The middleman later does the formality of filing the tax return and submits to government. The examples of indirect tax are Sales tax, Value added tax (VAT) or goods or service tax. There is no need for consultancy if there is normal hotel bill or small super markets or shopping bills but it is very important for big companies who takes services from other firms to have an Indirect tax planner.

These are further classified as:

1. Income tax consultant:

It is applied to an individual, corporations or other entities for their financial incomes. This is direct tax. The various consultants who help in income tax planning are:

2. Corporate tax consultant:

The income tax applied to a company, firm or a corporation is known as corporate tax. It is basically applied on profit made by the company.

3. Sales/Service tax consultant:

When a person uses a facility or purchase goods sales tax is applied. This tax can be included in the tax-inclusive price or else tax exclusive and later a person has to pay. The consultants in this case are usually for the sales concerned with a company or else the services used by company not for small sales or services i.e. if an individual has shop or visited hotel or bought an item then you don’t need a consultant. The various consultancies are:

4. VAT consultant:

Value added tax avoids the merger effects of the sales tax and this is done by adding the tax only at the stages of production.