Study On The Budgeting Method Of Railway Project Responsibility Cost Under VAT Mode

In recent years,the vigorous development of the railway industry has brought opportunities to the construction enterprises.But the competition in the railway construction industry has always been fierce.The implementation of the responsibility cost control has become the way for the survival to railway construction enterprises.After the replacement of business tax with VAT,the cost management of railway construction enterprises faces great challenges.It is extremely urgent for railway construction enterprises to comprehensively strengthen cost management.Meanwhile,changes in policies related to railway construction have a far-reaching impact on the management of railway construction enterprises.Since the pilot project of replacing business tax with VAT was launched nationwide in 2016,the construction industry and real estate industry have all changed from business tax to VAT,marking that the construction industry has comprehensively entered the era of VAT.According to the relevant provisions of the pilot project,old projects can choose to apply the simple tax method.In order to reduce the impact,most old projects choose the simple tax method,realizing the smooth transition of the policy of replacing the business tax with VAT.Since 2017,the new railway projects have adopted the general tax method,and railway construction enterprises are really facing the test brought by the replacement of business tax with VAT in procurement mode,target cost compilation,cost accounting analysis and cost assessment.Especially for the purchase of materials,equipment leasing,engineering subcontracting and other links involve the deduction of input tax,these all affect the cost and tax burden.Therefore,the original responsibility cost budgeting method is no longer applicable.In order to adapt to the change of business tax with VAT,railway construction enterprises urgently need a complete and mature responsibility cost budgeting method of business tax with VAT to guide the engineering economic personnel and cost management personnel to carry out responsibility cost budgeting and cost pre-control.On the basis of reviewing the development of home and foreign enterprise cost management theories,this paper introduces the theory of square and circular diagram of responsibility cost management,and expounds the theory and practice of responsibility cost management in China Railway Construction Corporation.Combined with the enterprise practice,this paper points out that responsibility cost should based on enterprise cost budget method and internal price system,field research,project planning,construction drawings.On the basis of introducing the basic concept of VAT and analysis of the characteristics of VAT,this paper puts forward the budgeting principles of price tax separation and unblocked chain of deduction.In the combination of railway industry subcontract management regulations of the state,focusing on the influence of the labor contract and response analysis in detail,this paper proposes the method of cost budgeting.The paper also puts forward improvement suggestions about decomposition of the responsibility cost budget.This paper introduces thebudgeting method of railway project responsibility cost based on Excel table in detail,and sorts out the logical relation among the table data.Finally,in view of the current performance appraisal,responsibility cost budget and labor management,material and equipment management systems of railway construction enterprises,this paper puts forward improvement suggestions to further improve the cost management level of railway construction enterprises.