Zubair Ansari’s Post

For today’s Tuesday Tip of the Week, we're featuring a sales tax tip that’s extremely helpful in understanding the mystery around sales tax on clothing. Ever ask yourself at the counter of your favorite shoe store why there was sales tax added to your new shoes and not the sock purchase at a different store? Well, I’m sure you’re not alone. In New York State, clothing and footwear under $110 are exempt from New York City and NY State Sales Tax. If you happen to purchase an item above $110, those items are subject to a 4.5% NYC Sales Tax and a 4% NY State Sales Tax. Are you a small business looking for assistance with payroll, bookkeeping, business advising, or sales tax services? If you are and want great service, look to Janine Anderson’s Accounting Solutions to meet, and exceed, all your needs! Contact Janine today at janine@jandersonsaccountingsolutions.com. #janineandersonsaccountingsolutions #salestax #tipoftheweek

For today’s Tuesday Tip of the Week, I’m featuring a sales tax tip that’s extremely helpful in understanding the mystery around sales tax on clothing. Ever ask yourself at the counter of your favorite shoe store why there was sales tax added to your new shoes and not the sock purchase at a different store? Well, I’m sure you’re not alone. In New York State, clothing and footwear under $110 are exempt from New York City and NY State Sales Tax. If you happen to purchase an item above $110, those items are subject to a 4.5% NYC Sales Tax and a 4% NY State Sales Tax. Are you a small business looking for assistance with payroll, bookkeeping, business advising, or sales tax services? If you are and want great service, look to Janine Anderson’s Accounting Solutions to meet, and exceed, all your needs! Contact me today at janine@jandersonsaccountingsolutions.com. #janineandersonsaccountingsolutions #salestax #tipoftheweek

In this two-part series, Megan Bishop and Ross Hocking explain the integrity rules of the R&D Tax Incentive Program and explore the rigorous approach to compliance and enforcement of R&D tax regulations through a case which determined a customised basketball shoe not eligible for R&D. Read part one on the R&D Tax Incentive Program here, and learn more about the case study below: https://ow.ly/X9UX50QNeGT #ResearchandDevelopment #tax #taxincentives #integrityrules #expenditure #manufactoring #casestudy

Did you know that sales tax rules for clothing vary dramatically from state to state? 🛍️ Some states consider clothing tax-exempt, while others tax it at full rates or even apply special rules based on price thresholds. Understanding these nuances can help you stay compliant and avoid unnecessary headaches. This article by Avalara is a must-read for business owners and accountants navigating these tricky regulations.

When it comes to Sales Tax, the United States of America is anything but United! How much should you be charging in sales tax in each state? What's exempt? Read the blog for the answers, including rules on clothes for pets. (Minnesota sales tax applies to dog sweaters!)

The always helpful, ever informative Phoenix-based ADDINGMACHINE.COM P.C. just published a great new blog post about the world of 'superfake' handbags and how these replicas can wreak havoc on taxation that you can learn more about by clicking below.

16 states have back-to-school sales tax holidays. #salestaxholidays #taxbenefits #tuitionfees #deductions #education #salestax #cpafirms #taxplanning #financialplanning

Background M/s. Mehr Dastgir Leather and Footwear Industries (Pvt) Limited filed a constitutional petition in the Lahore High Court, challenging several show cause notices issued under Sections 10(3) and 11(2) of the Sales Tax Act, 1990, and Rule 37 of the Sales Tax Rules, 2006. These notices were issued regarding tax periods between 2005-2007, nearly 15 years after the fact. Despite orders from the Supreme Court of Pakistan upholding the company's position, the Federal Board of Revenue (FBR) continued to delay processing the company’s refund claims, ultimately issuing the disputed show cause notices. ---- Issues 1) Whether the issuance of show cause notices 15 years after the tax periods, with FBR's condonation of time under Section 74 of the Sales Tax Act, 1990, was valid. 2) Whether the issuance of show cause notices contradicted the Supreme Court’s prior rulings regarding the company's tax refunds. 3) Whether the FBR’s actions in issuing the notices constituted mala fide and an abuse of power. ----- Holding/Reasoning/Outcome Condonation of time: The court held that FBR's condonation of time was invalid. While FBR condoned the time limit for finalizing the assessment until 29.08.2022, the show cause notices issued on 22.08.2022 were outside the permissible timeline, as no reasonable grounds for condonation were provided. Section 74 requires FBR to justify any extension of the limitation period, which was not done in this case. Contradiction to previous rulings: The court reasoned that the show cause notices involved the same dispute that had already been decided by the courts, including the Supreme Court of Pakistan. Therefore, the issuance of the notices violated the legal principle of finality of judgments, which protects parties from being subjected to the same dispute repeatedly. Mala fide: The court noted that the FBR's actions appeared to be in bad faith, as the petitioner had been waiting for their refund for years, yet instead of processing it, they were served with show cause notices. This suggested a frivolous attempt by the FBR to delay the refund and retaliate against the petitioner-company. The court quashed the show cause notices and directed the respondent-department to process the company’s refund claims within three months. ---- Citations/Precedents Sales Tax Act, 1990, Sections 10(3), 11(2), and 74 Sales Tax Rules, 2006 (Rule 37) Federal Board of Revenue through Chairman, Islamabad and others v. Abdul Ghani and another (2021 SCMR 1154) Supreme Court Orders in Civil Petition Nos. 2-L, 3-L, and 41-L of 2014 (dated 27.12.2017) Appellate Tribunal Inland Revenue (ATIR) Decisions in Sales Tax Reference Nos. 23 of 2010, 30 of 2011, and 6 of 2017 Citation: 2024 LHC 4061 www.paklegaldatabase.com

Find out more about the world of 'superfake' handbags and how these replicas can wreak havoc on taxation via our new blog post from Otero & Associates CPA's. Just click below.

Are you confused because you’re not sure what portion of your sales are non-taxable? Help is here! Today’s Tuesday Tip of the Week takes the guesswork out. Determining which portions of your sales are taxable and non-taxable depends on several factors, including the type of products or services you sell, the nature of your transactions, and specific exemptions or exclusions provided by your state tax laws. Surprisingly to many, sales tax does not apply to most services. Here’s a brief guide to help you understand the basics for New York State. NYS’s non-taxable sales are as follows: • Capital improvements to real property. • Most food items purchased for home groceries. Prepared foods are not exempt. • Prescription medications and many over-the-counter drugs. • Clothing and footwear sold for less than $110 per item or pair are exempt from state sales tax, though local taxes may still apply. • Many personal and professional services (e.g., legal services, medical services, personal care services). • Sales of items purchased for resale are exempt if the buyer provides a valid resale certificate. Please know there are specific rules and regulations for each business, so it is imperative you do your research for your own business. If you need guidance navigating through your NYS sales or another state’s sales, please don’t hesitate to give me a call or email me at janine@jandersonsaccountingsolutions.com. #janineandersonsaccountingsolutions #SalesTax #tipoftheweek