Coatings industry upstream and downstream or will be included in the scope of consumption tax collection

China Paint Network
News: Recently, a director of the State Administration of Taxation in Guangdong Province at all levels of national tax leadership, Guangdong Province
coatings
industry association president Huang Kai, Secretary-General Lu Shui column, accompanied by the Chemical Industry in Shunde District, Guangdong Province to carry out research on the collection of consumption tax. Paint analyst Roger Carr said the IRS investigation should be related to the development of paint consumption tax implementation rules.
afternoon, Guang Tu Association President Huang Kai, Secretary-General Lu Shuile came to China paint newspaper exchange, shared the State Administration of Taxation leadership to investigate the progress of consumption tax, and the current industry trend analysis. The IRS surprised many in the industry by name-calling Zhong Tu Chemical to conduct research. "Zhong Tu Chemical is the second company invested in China by CMP Group of Japan, " Huang told reporters. Specializing in the production of a variety of ships and containers dedicated coatings. The GST has been actively taxed since it was officially implemented on February 1st, with 240,000 GST paid in February alone. "Zhong Tu Chemical is one of the earliest enterprises to implement the consumption tax, it is not surprising that the IRS requested to conduct a seminar on Sino-Tu Chemical. In the investigation led by the State Administration of Taxation, Huang said that the reason why the consumption tax caused greater fluctuations in the industry, opposition to a lot of voices, and paint consumption tax has no implementation rules can be followed, the scope of exemption is unclear, has a lot to do with. These problems need to be further improved in the implementing rules.
, such as the scope of the tax to make further clear, such as curing agents, thinners sold separately whether the consumption tax; For the export of paints that are regarded as domestic sales can be exempted; Whether the purchase of paint for simple processing and re-sale is to be levied; In addition, from the outside to buy taxable agent, and then by the company with curing agent, diluent, etc. whether to be taxed. The focus of the discussion is mainly on the scope of exemption. The IRS believes the exemption is too broad and finds that some businesses are lying to avoid a consumption tax. At the same time, the State Administration of Taxation intends to extend the scope of collection upstream and downstream, to paint downstream enterprises and upstream curing agents, thinners, resins and other enterprises also levy consumption tax, and carefully listened to the wide coating concord and medium-coated chemical and other views.
coatings analysts said: "Expanding the scope of the paint consumption tax has been set, the State Administration of Taxation to China Coating Chemical Research, just to determine which upstream and downstream enterprises will eventually be included in the scope of the paint consumption tax collection." ”