Hence, it is convenient to administer this system. Administration: The number of dealers to be assessed under single point tax is very small. Rate of Tax: Usually, under single point tax system, the rate of tax is high, whereas in the case of multi-point tax system, the rates of taxes are low.ĩ. Chance for Tax Evasion: Under single point tax system, the possibility for tax evasion is more, whereas under Multi-point tax system, it is difficult to evade tax.Ĩ. In multi-point tax system, more revenue can be raised than that of the single point tax system.ħ. Quantum of Revenue: From the revenue point of view, single point system generates less amount of revenue when comparing with multi-point tax system. The price paid by the consumer under multi-point sales tax is more than price paid under single point tax.Ħ. The price paid by the consumer under multi-point sales lax includes cost of the products and tax paid by the previous sellers. Price for the Consumer: Under single point tax, the price paid by the consumer is less than the price paid under multi-point tax system. Hence, the capital requirement under this system is high.ĥ. As a result, interest on such additional capital also becomes a part of the cost at this point and which has a further rise in price. But in multi-point sales tax, the manufacturer or dealer of every stage is required to raise capital not only for the actual cost of manufacture or purchase but also for payment of tax. Capital Requirements: In single point sales tax system, the capital requirements are low. Point of Levy: Under single point tax system, the tax is levied at only one point either at the first point or at the final point, whereas under multi-point tax system, the tax is levied at all points of sale till it is sold to the consumers.Ĥ.
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