Among the many taxes levied by the central or local government, Sales tax is an important and prominent type of tax imposed on retail goods and services at the point of sale. The retailer charges Sales Tax from his customers for each sale undertaken on the selling price of goods and services purchased, and later submitted to local or state government by filling up requisite forms upon computing sales tax. It is important to deposit sales tax in time with the government for smooth and credible running of business.

A kind of 'ad valorem' tax, Sales tax is levied subject to the monetary value of the taxable good, as well as and its overall significance for the poor and deprived. For example, food items and prescriptive drugs are generally exempt from sales tax as they are significant for the consumption of the economically backward in the society. However, most of the other commodities bear a certain perc-

entage of sales tax, so as to constitute 25 to 50 percent in the total revenue of government generated off taxes only.

There are two types of sales tax, namely central sales tax and local sales tax. As the rate of sales tax varies from commodity to commodity, it’s a time-consuming and difficult task to be done for an organization, specifically one dealing in multiple goods. As a result, most organizations prefer outsourcing sales tax computation services to professional accounting firms, so as to ease their respective management, render them more goal oriented by letting them focus on more important issues at hand.