| Since May 1,2016,it is a major strategic decision made by the Party Central Committee and the State Council under the new norm of China’s economic development that the value-added tax(VAT)reform was carried out in all areas.It is also an important measure to help the structural reform of supply-side and to improve the quality and efficiency of enterprises.The implementation of VAT in the construction industry will play an important role in promoting the transformation and upgrading of the industrial structure.The major change of the policy environment that construction contracting enterprises faced puts forward higher requirements for the target cost management.The management of target cost in enterprises are formulated under the environment of business tax.It is impossible to adapt to the management requirements of VAT.After the VAT reform,enterprises need to make adjustments according to the relevant provisions of VAT.The impact of VAT reform on the target costs of construction contracting enterprises mainly lies in the deductible aspects of input tax.Therefore,the target cost management of enterprises should also be taken into consideration.Based on the analysis of the current situation of the target cost management of the construction contracting enterprises,the impact of the business transformation on the finance and taxation,the tender offer,subcontracting scheme selection,labor cost,material purchase,machinery and equipment utilization and capital plan of the construction project has been further studied.On the basis of the analysis of the impact of the target cost management of the construction contract enterprises after the VAT reform.It is concluded that the key of enterprises target cost management should focus on the income tax deduction.The main countermeasures are as follows: In bidding period,the enterprises should establish the price calculation model for different construction projects respectively.When selecting subcontract schemes,two subcontracting schemes should be calculated separately and fully deducted from input tax.In the aspect of labor cost,the construction contract enterprises should pay special attention to the acquisition of invoices.When choosing material suppliers,the construction contract enterprises should take different countermeasures against the same purchase cost.Considering the materials supplied by construction units,the enterprises shall require Party A to provide formal and qualified VAT invoices for the input tax deduction,or to compensate Party B’s tax costs properly.When enterprises choose to purchase mechanical equipment,internal allocation or external lease separately,corresponding management strategies can be adopted.At the same time,enterprises can also achieve target cost management by making capital plans and arranging funds reasonably.There are many factors affecting the target cost management of the construction contract enterprises,especially in the background of the VAT reform.In the future,we should further study the target cost management of the enterprises,and put forward practical countermeasures for the reference of the enterprise. |
