"The Business Tax Reform To Levy VAT" On The LY Group And The Countermeasures

The Ministry of Finance and the State Administration of Taxation jointly issued by the State Council agreed that "business tax reform VAT pilot program," clearly from the beginning New Year’s Day 2012, Shanghai firstly carry out this pilot program,the business tax reform VAT in modern transportation and part of service.This is the other VAT reform implementation after New Year’s Day in 2009, allowing all taxpayers nationwide general VAT input tax deduction of their newly purchased equipment contained in the post, and an important measure of the VAT reform.VAT sales tax reform called the business tax reform to VAT the inevitable outcome of this policy is in the context of China’s rapid economic development of the formation is to promote the process of China’s economy is another major reform of its implementation effectively suppress double taxation, for enterprises to save production costs, reduce business costs, so that corporate profit margins to expand and accelerate the pace of development of the enterprise.There is no doubt to say, the business tax reform to VAT policy are conducive to solving the problem of double taxation service enterprises, to reduce the corporate tax burden in order to expand business areas, to enhance bargaining power, greatly enhance the enterprise self-development potential and market competitiveness, will help attract more pooling more resources to service. However, manufacturers and service companies are closely related, it is because of manufacturing enterprises and downstream enterprises are mostly service companies. Thus, although the the business tax reform to VAT direct benefit is that service companies, manufacturing companies had a significant "spillover benefits", to promote the separation of major business enterprises themselves, will outsource some services to enable enterprises to focus effort to enhance the core competitiveness of the main industry. After carrying of the business tax reform to VAT, the manufacturing companies formed between the downstream complete interlocking chain of tax, so long as doing a better job of enterprise management, will be able to deduct the tax on more and more.LY Group as a outstanding one of the auto parts manufacturers in the crowd, a large group size, business complex, involving upstream and downstream services business very much, has high research value.This paper analyzes the the business tax reform to VAT"the impact of tax reform on LY group associated with the modern service industry, thereby affecting its elaborate system to bring LY group, summed up as a result of the business tax reform to VAT policy so that the group is facing opportunities and challenge, concludes address these opportunities and challenges have an active role in proactive, targeted and operable of measures to better play the tax system reform.As the Hebei area company, LY Group businesses in August 1, 2013 adding the policy of the business tax reform to VAT", the paper manufacturer LY Group as an example, in order to relate to the other areas related businesses, When businesses the business tax reform to VAT" can learn some experience.