The Tax Benefits Of Natural Gas Investing?}

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The Tax Benefits Of Natural Gas Investing?

by

Terry Stanfield..

Any type of investing has an element of risk. Investing in the exploration of natural gas is no different. Investing in the exploration of natural gas is not like commodity investing. When you are investing in a commodity, such as gas or oil, you trying to buy low and get a return when the price rises. When you invest in the exploration of natural gas, however, you are investing in an opportunity to find natural gas by drilling. Because natural gas is so very much desired and a necessity commodity, there are various tax benefits that go along with investing in natural gas.

When you invest in commodities, you get no tax benefits. If you make money on the investment, you pay a capital gains tax on what you make. This is not the case when you are investing in natural gas exploration. You can write off a dry hole, for example, and any cost that comes from drilling for the gas can be written off in the first year of the investment.

[youtube]http://www.youtube.com/watch?v=9Dx2d446dsU[/youtube]

If the project is successful, you can write off the profits over a period of years. This can often include a depreciation over the life of the well. Many investors will do a straight line depreciation over a course of seven years. You cannot do this when you are investing in stock, for example, that makes huge gains. There is a significant decrease in the capital gains that you have to claim on your investment.

If the project is unsuccessful and it ends up with a dry well, you can write off as much as 65 percent of the loss. This can actually reduce your tax bracket, saving you money when you prepare your income tax. The 65 percent loss write off is one of the reasons why many investors are eager to participate in the investment of gas or oil exploration as even a loss can end up a gain when it comes to tax time.

The reason that there are such tax incentives when you are investing in natural gas exploration is that the government wants to encourage these types of investments. While investing in stock that goes up can benefit both you and the company that owns the stock, a profit in the field of natural gas exploration can benefit the entire nation. This is the reason for the significant tax benefits when investing in natural gas exploration.

Even if you lose, you win, when you choose this type of investment. If the investment does pan out and the drilling is successful, you can find that you earn a high return on your initial investment that can often be stretched out to the life time of the well, allowing your tax benefits to continue well into the future.

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The Tax Benefits Of Natural Gas Investing?}

Tax Specialist December 31st 2021

Growing Television Market In India}

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Growing Television Market in India

by

prashree

On the brick of rapid economic growth, India has witnessed the dynamic change in country’s consumer electronics industry. In last few years the industry has been witnessing significant changes in retail boom, growing disposable income and availability of easy finance schemes. One electronic gadget that has brought new revolution in Indian Electronic Industry is Television Set. Today, India is fast emerging as the key driver in the global television market both as a manufacturer and consumer.

[youtube]http://www.youtube.com/watch?v=ZuhYRZRfTuY[/youtube]

In recent years, the market for televisions in India has changed rapidly from the conventional CRT technology to Flat Panel Display Televisions (FPTV). Currently, the split between CRT and FPTV is around 97% and 3% respectively. In addition to this, one of the most striking changes sweeping across the colour television market in Indian market is the exponential growth of the flat panel television (FPTV) market, in common parlance called the liquid crystal display (LCD) and plasma televisions . Moreover, as per recent research data available, the global market for FPTV is expected to grow from 51 million units in 2006 to 127 million by 2009.Looking at the present scenario, over the last couple of years, the LCD prices have even dropped by around 30 per cent annually. Some of the important factors that boasted this growth also include the increasing awareness of the advantages of LCD televisions, the growing availability of the product across dealer counters and the finance schemes in the market. Besides this, as a manufacturing hub, the television industry is improving more and more. There are many domestic and MNC companies that have increased their production bases in the country. Easy availability of low-cost skilled labor and the emergence of SEZs, which are tax-free zones are some of the key factors that have resulted in growth of these manufacturing units. In fact, encouraged by tax-breaks, new manufacturing units are coming up in less-developed regions now. Today, India is one of the few emerging countries to have an excellent component supply base in terms of manufacturing facilities for glass and color picture tubes, so it helps it a good choice for all those companies who are looking to take benefit of this emerging market.

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Growing Television Market in India}

Tax Specialist December 5th 2021

Citizen Of India A Full Time Taxpayer To The Government}

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Citizen of India – A Full Time Taxpayer to the Government

by

Taufeeq Shaikh

Respected all,

I want to draw attention of all the citizens of India towards the newly passed GST Bill, Indian Constitution and the Role of government. What is actually written in the constitution and how government is currently following. I will try to explain the current situation of the citizens. Hope you all understand it, am not a professional writer but just to awake the citizens of my india I had done a little bit of work and written something.

In this article I have first written the list of tax paid by us in our day to day life. After that in brief about the Constitution of India, so that you can get clear about what constitution says. Further to it the current situation of the country and how taxes are affecting our lives. It may not be properly systematically written but as I mentioned earlier am not a professional writer so please ignore my mistakes if any.

I am 27 years old working as a Sr. Accounts Officer and being a youth and for the shake of country I had taken an initiative to write this article. This is my first article I dont know whether it will be effective or not but from my end I had tried and done my duty for this nation. I hope and will pray that through this article at least I can do something for the welfare of the Indian Citizens.

TAXES PAID INDIRECTLY TO GOVERNMENT BY CITIZENS IN OUR DAY TO DAY LIFE

1.Purchasing a House / Property ?? Pay Stamp Duty / Registration fee ( It is treated as Tax)

2.Having a House / Property ?? Pay House Tax / Property Tax

3.Having a Water Tap Line ?? Pay Water Tax

4.Purchasing a Vehicle ?? Pay Vehicle Tax

5.Purchasing a Vehicle ?? Pay Infrastructure Cess

6.Having a Vehicle ?? Pay Road Tax

7.Purchasing Clothes / Apparels to wear ?? Indirectly paid tax on it with bill

8.Purchasing any Household Items for House ?? Indirectly paid tax on it with bill

9.Purchasing Milk / Oils for cooking or any eatables ?? Indirectly paid tax on it with bill

10. Paying for LPG Gas Cylinders / Connections for cooking ?? – Indirectly paid tax on it with bill

11.Paying for Electricity Bills for the House ?? Indirectly paid tax on it with bill

12.Paying for Dish TV / Set Top Box in House ?? Indirectly paid tax on it

13.Paying Fees for Childrens Education ?? Indirectly paid Education Cess & Taxes

14.Paying fees for any Sports / Activity club for children ?? Indirectly paid tax on it

15.Paying for Petrol / Diesel in the Vehicles ?? Indirectly paid tax on it

16.Paying for Phones Bills & Mobile Recharge ?? Indirectly paid tax on it

17.Paying for Food in the restaurant ?? Indirectly paid tax on it

18.Paying for Movie / Shows for entertainment purpose ?? Indirectly paid tax on it

19.Going outside for Picnic / Tour via a Bridge / Pool ?? Paid Toll Tax on it

20.Going outside by Bus / Train / Air ?? Indirectly paid tax on it

21.Paying for Membership fees of any Club / Organization ?? Indirectly paid tax on it

22.Paying fees for Admitted in Hospital ?? Indirectly paid tax on it

23.Buying any medicine for health treatment ?? Indirectly paid tax on it

24.Paying fees to any Doctor / Lawyer / Professionals ?? Indirectly paid tax on it

25.Maintaining accounts in any Bank / Post Office / Govt. Dept. ?? Indirectly paid tax on it

26.Involved in any shares / debentures transactions ?? Paid tax on it

27.Arranging any event / function for family ?? Indirectly paid tax on services received with bill

28.Got any lottery ?? Paid Lottery Tax on it

[youtube]http://www.youtube.com/watch?v=4QIvERcsnd8[/youtube]

TAXES PAID BY CORPORATE / BUSINESS SECTORS TO GOVT.

29.Having staff of employees ?? Pay PT ( Professional Tax )

30.Giving any benefits / perks to employee as an extra pay ?? Pay Perquisite Tax ( Fringe Benefit Tax )

31.Are you a Consultant ?? Pay TDS ( Tax Deduction at Source )

32.Does your Income Exceeds 2.5 Lacs as an Individual ?? – Pay Income Tax

33.Doing Business ?? Pay Corporate Tax

34.Earning profit from business ?? Pay Income Tax

35.Selling Goods in Intra state (Local State) ?? – Pay VAT. ( Value Added Tax )

36.Selling Goods in Other State (Outside State) ?? Pay CST. ( Central Sales Tax )

37.Importing any Machinery / Goods for Business ?? Pay Customs Duty

38.Selling of goods at lower price than the normal value to Foreign Countries ?? Pay Anti Dumping Duty

39.Manufacturing Goods ?? Pay Excise Duty

40.Selling Waste & Scrap of the Metal ?? Pay TCS ( Tax Collected at Source )

41.Distributing Profits as Dividend to the partners ?? Pay Dividend Distribution Tax

42.Goods coming from outside the state ?? Pay Octroi

43.Purchased a House / Factory / Property ?? Pay Stamp Duty & Registration Fees

44.Having Warehouse / Factory / House ?? Pay Municipal Tax

45.Having Water Tap Line ?? Pay Water Tax

46.Have you delayed for paying the Tax ?? Pay Penalty

47.Have you been Penalized for Penalty ?? Pay Interest on Tax & Penalty

48.Giving or receiving any service?? Pay Service Tax

49.Giving or receiving any service ?? Pay Swacch Bharat Cess

50.Giving or receiving any service ?? Pay Krishi Kalyan Cess

51.Have you received any Gifts ?? Pay Gift Tax

52.Purchasing a Vehicles for Company ?? Pay Vehicle Tax

53.Purchasing a Vehicles for Company ?? Pay Infrastructure Cess

54.Have any vehicles ?? Pay Road Tax

55.Sold any property, Shares, Bonds & Precious Metal ?? Pay Capital Gain Tax

56.Dealing with share Bazaar ?? Pay Securities Transaction Tax

57.Goods coming from outside State ?? Pay Entry Tax

58.Goods coming through a Bridge / Pool by road ?? Pay Toll Tax

59.If at all you are exceeding all the upper level of Incomes ?? Pay Wealth Tax

60.Wait its still not finished.. Government may still plan to levy tax on Death. To be continued

This are some of the examples just try to calculate taxes you paid indirectly by purchasing consumable items of at least one month / day, you will come to know how much tax you pay indirectly. Addition to this you are paying direct taxes too at the year end from your earnings. There is still a lot, but from all this at least I hope all the citizens of my country should wake up and will take initiative to make government realize what Indian Constitution is and how government should be. Each & every citizen is the part of it whether he is Employed, Unemployed, Student, Political Leader, Business Man, Common Man, etc.

GST :- Goods & Service Tax :- which will be levied on all Goods & Services except some exempted goods & services. In GST following taxes are going to be merged and expected rate will be 18 20 %

Central Excise Duty

Additional Excise Duty

Service Tax

Additional Customs Duty commonly known as Countervailing Duty

Special Additional Duty of Customs

Entertainment Tax (other than the tax levied by the local bodies)

Central Sales Tax (levied by the Centre and collected by the States)

Octroi and Entry tax,

Purchase Tax

Luxury tax

Taxes on lottery, betting and gambling.

It is not at all One Tax.. Totally fake slogan of the government :-

One Nation One Tax

CONSTITUTION OF INDIA

WE, THE PEOPLE OF INDIA, having solemnly resolved to constitute India into a SOVEREIGN, SOCIALIST, SECULAR, DEMOCRATIC, REPUBLIC and to secure to all its citizens:

JUSTICE : – social, economic and political;

LIBERTY: – of thought, expression, belief, faith and worship;

EQUALITY : – of status and of opportunity; and to promote among them all

FRATERNITY:- assuring the dignity of the individual and the unity and integrity of the nation;

IN OUR CONSTITUENT ASSEMBLY this twenty sixth day of November 1949 , do HEREBY ADOPT, ENACT AND GIVE TO OURSELVES THIS CONSTITUTION.

MEANINGS OF THE WORDS USED IN OUR INDIAN CONSTITUION

SOVEREIGN :- A Supreme Ruler

SOCIALIST :- adhering to or based on the principles of socialism.

SECULAR :- not connected with religious or spiritual matters.

DEMOCRATIC :- relating to or supporting democracy or its principles.

REPUBLIC :- a state in which supreme power is held by the people and their elected representatives, and which has an elected or nominated president rather than a monarch. a group with a certain equality between its members

ECONOMICS :- Relating to Economy / Justified in terms of Profitability.

SOCIAL :-Relating to Society / needing companionship and therefore best suited to living in communities.

POLITICAL :- Relating to Government or Public affairs of the Country.

FRATERNITY :- a group of people sharing a common profession or interests / Mutual Support.

DIGNITY :- the state or quality of being worthy of honor or respect.

ADOPT :- choose to take up or follow (an idea, method, or course of action).

ENACT :- make (a bill or other proposal) law. / put into practice.

Explanation of Indian Constitution preamble in brief :-

We the peoples of India are solemnly declaring to set up / organize India in to a Supreme ruler by adhering to principles of socialism and not connected with spiritual or religious matters and relating to democracy and its principles. A country in which supreme power is held by the people and their elected representatives and to secure all its citizens. Further it is defined in four cadre / systems :-

1.Justice : – To give justice relating to Society best suited for living, Economy in terms of profitability and relating to Government or public affairs of the country .

2.Liberty : – Indian citizens have the liberty of thoughts, expression, beliefs, faiths & worships. It means Citizens of India have the liberty to express their thoughts, beliefs and can have faith & worship as per their own wish & manner.

3.Equality :- Indian citizens have an equal status & opportunity in an Indian constitution and Indian constitution promotes all the citizens for their equality in the constitute.

4.Fraternity :- Indian Constitution assures every citizen of India for their Quality of being worthy of honor or respect and unity amongst them and the integrity of the nation.

On 26th November 1949 Indian constitution adopted a law and put in to practice to give ourselves (Indian Citizens) to the constitution and abide as per the Indian Constitution.

Let us understand with an illustration :- If any NGO / Organization is established or formed then it is very clearly stated that NGO / Organization has to stick to it principles, purpose & fundamentals and will be abide by the law & constitution. Even NGOs / Organization stick to its constitution after its formation. NGOS are non-taxable as they are non-profits organizations. Same way in the Indian constitution many government sectors are exempted from the taxes. Why?? What was the reason to exempt government from the Taxes? Because government too is a non-profits establishment and for that reason it was exempted from the taxes. But now a days government is purely a profitable sector which collects only & only tax from the citizens of India. Are we making profits by consuming our basic necessities to live life & sustain in the country ?? Then how can government take tax on it from us ?

This is our Country , It is a matter of whole country, It should be the question of every citizen. Are we having illiterate personnels in government who cannot understand the basic principles of the constitutions or we are having purely corporate personnels who are just functioning the government as a business / corporate sector. It is very clearly stated in the constitution that adhering to principles of socialism and not connected with spiritual or religious matters and relating to democracy and its principles. A country in which supreme power is held by the people and their elected representatives and to secure all its citizens.

Whatever circumstances and challenges we are facing in our country today is only & only because of the unemployment, cost of living and inequality. And the root cause to all this problem is not following the basic principles of the constitutions. Government is planning very high goals but is blind to see the base of the country. The first & foremost goal of the government should be that each & every citizen of the country should get Food, House, Water, Hospitals, Education, Electricity, Employment etc. etc. basic necessities for the living. If this is not achieved yet then how could government think of high goals. Government should first work to fulfill the basic necessities of the citizens by exempting the taxes on all the consumables items for living day to day life.

Government should adopt such systems in which basic necessities are covered of the citizens and after that from their earnings profit government can charge them tax. Any consumable / eatables should be tax free / exempted and the tax should be only on the profits on which government have rights for the development of the country. But if government will take tax from their basic necessities itself then this will be against the constitution and the socialism and of course against humanity too if seen as human.

As stated in the constitution about justice relating to the society for best suitable living, is our government following the constitution for it ? I must say the government had imposed taxes on each & every items & services for which end user means a consumer has to bear. The consumer is an Indian citizen he may be a rich or poor but whatever he may be, he has to pay for it. Due to tax imposition the cost of living for every citizen is day by day increasing which leads to a poor economy & weak socialism. Which is against indian constitution. Is this the way to run the government as per the constitution ? No absolutely not. The constitution is made so that each & every citizen of india can live & sustain their lives with ease and equality and honor of respect & dignity.

Our Great Leader to whom we know as Father of the Nation Mahatma Gandhi lead a Dandi Yatra just because for the Tax laid on the Salt by the British East India Co. It is an exemplary illustration. Gandhiji did not even allowed to levy tax on the salt which is having a minor to minor value. The only concept for it was to exempt the tax which are consumed as the basic necessities of the citizens. In the same manner our every great revolution was most probably for the Lagaans (Taxes) which were laid by the Mughal Emperors & British East India Co. After so much of struggles & revolutions we got the independence and finally the Indian Constitution was made so to abide the government by the laws for the welfare of the citizens and good governance which can make the citizens to live with equality & socialism. But now this government has forgotten the basic fundamental of the constitution. And once again leading us back to those old days of revolutions.

I want to share one best example :- In Sansad Bhawan canteen they are giving lunch & foods at very minimal price (Negligible Price) why such ??? Why their foods is so cheap ? Why government cannot provide food in such a price / rate to all the citizens of the country ? We should think on it. We all are having a good blessed brain and are well educated peoples. What logic or what concept is government following ?

1.Tons of stock of Eatables are stored in the warehouses and get wasted.

2.All the standard quality of goods & items are exported to foreign countries.

3.Foreign Sectors are invited to invest in our country and we are made to be a slave or an employee in our own homeland. Once again its against basic principle of constitution for which great revolutions were made by our great leaders.

4.Thousand crores of money are spent for foreign tours & programs by the government, Just think if it was utilized for the development of our own country ?

5.Every unemployed person who are willing to get job in government sectors / departments are charged 100 500 Rs. For filling application. Why such ?? Government is earning crores of rupees from unemployed citizens through it. Its a matter of shame to charge an unemployed person for it.

6.Industrial Sectors are growing at vast speed why ?? Govt. & Industrial sectors both are bhai bhai now. They are lease concerned about the socialism they want money.

7.1.4 Lacs Crores (Approx) of Bad Debts were faced by all the banks in india as per RBI. Whose money was all this ??? Who is the ultimate sufferer of this ?? Of course non other than a citizen who keeps his money in banks for safety.

8.Giant Companies are now declaring as bankrupt. Whos Money was in all this ??

9.Pricings are at top No limits on the price increase even in basic vegetables & eatables. Why ?? Who is responsible ? Who has the power to control inflation ?

10. Government employees are paid 7th Pay and the other side a poor citizen is dying hard to earn Rs.100 /- a day. Who is responsible for this inequality ? Doing more work then the Govt. Employee but earning just up to 10 % of Govt. Employees basic pay. Inequalities is a major factor in employment whether its Govt. , Public, Private or Individual Labour.

11. Cost of Education & Books are too high. How can a poor citizen study their childrens ?? Why inequalities in schools / colleges ??

So is it like we should keep our country poor and give our food & treasures to other country just for development ?? Why our government is not taking initiative to first fulfill all the basic necessities of the every citizens of India. And after accomplishing the cost of living government can step for further development. Government is taking share as a form of TAX from every rich & poor citizen and then it is saying we are using for your development but how ??? Why in such a manner ??? Be practical think economically think socially. Politically it may be good at their end but at social level its the worst system to run the government.

I specially request all the youths of my nation this is our time to show up, if we will not do by now then we will be the victim in future and will give spoiled government to our future generations. Government is going to levy GST with slogan as One Nation One Tax One Market. I have made very clear with above examples is it One Tax ?? Then how government can make us fool by making such statements of one nation one tax.

We should obviously opt for one nation one tax but it should be in practical and not a fake slogan. It should be in real on profits earning and not on the basic necessities of the citizens. We want to develop but not in such a way by which poor citizens of india are dying for it. We have equal rights & honor let all the citizen first get their basic necessities then will do further development.

On this Independence day I want to ask my Indian citizens that are we actually living in a democratic country or are we a real Independent ?? No – We are all slave of Government to pay each & every penny to live and for consistence in this country. It is a matter of regret that our great leaders has fight for our independence and our government do not feel the value of independence.

Once again I request to each & every citizen of India please get information as much as you can and lets take initiative to do something for government of our country. It is our duty for the nation to get government into its actual Constitution

Article Source:

eArticlesOnline.com}

Tax Specialist August 2nd 2021