Research On Influence Of Vat Pilotreform On FS Construction Company And Countermeasures

Disadvantages of integrated levy of business tax and value added tax have emerged as development of economy and society which necessitates immediate reform on financial and taxation system.Levying Value-Added Tax in lieu of Business Tax,as the main event of this reform(hereinafter referred to as Replacing Business Tax with Value-added Tax)will establish a complete value-added tax system of consumption type and avoid double tax levying to realize fairness of taxes upon its full execution,which will also improve standardization of tax levying and management and effectiveness of social divisions and collaborations as well as industrial confluence in favor of economic transformation and upgrading.Since Replacing Business Tax with Value-added Tax was put on agenda for the first time on Fifth Plenary Session of 17th CPC Central Committee to May 1st,2016,it has been implemented in full scale across China putting an end to the business tax which had been levied for more than 20 years.Replacing Business Tax with Value-added Tax has extensive and profound influence on construction industry,one of the main source of national taxes providing employment opportunities for most rural labor force.How should construction industry face the opportunity and challenge brought about by Replacing Business Tax with Value-added Tax?This paper integrates practice with theory in analyzing impact on tax burden and taxation management of construction industry brought by Replacing Business Tax with Value-added Tax.Impact on company tax burden,financial indicators,operational management and cost of FS Construction Company are analyzed with consideration of reality;countermeasures and taxation planning schemes are put forward specifically to serve as references for relevant companies to meet with opportunity and challenge brought about by Replacing Business Tax with Value-added Tax...