International Journal of Social Science & Economic Research
Submit Paper

Title:
ANTECEDENTS OF TAX COMPLIANCE AMONG MSME'S UNDER GOODS AND SERVICE TAX [GST] REGIME: A CONCEPTUAL MODEL

Authors:
Dr Jojo K Joseph ; Rani Jacob

|| ||

1Dr Jojo K Joseph (M Com, B Ed, Ph D); 2Rani Jacob (M Com)
1Associate Professor and Head Research and Post Graduate, Department of Commerce, Marian College Kuttikkanam [Autonomous] 685 531 Kerala [India],
[Corresponding Author]
2Research Scholar, Research and Post Graduate Department of Commerce, Marian College Kuttikkanam [Autonomous], 685 531 Kerala.

MLA 8
Joseph, Dr Jojo K., and Rani Jacob. "ANTECEDENTS OF TAX COMPLIANCE AMONG MSME'S UNDER GOODS AND SERVICE TAX [GST] REGIME: A CONCEPTUAL MODEL." Int. j. of Social Science and Economic Research, vol. 3, no. 4, Apr. 2018, pp. 1356-1371, ijsser.org/more2018.php?id=95. Accessed 2018.
APA
Joseph, D. K., & Jacob, R. (2018, April). ANTECEDENTS OF TAX COMPLIANCE AMONG MSME'S UNDER GOODS AND SERVICE TAX [GST] REGIME: A CONCEPTUAL MODEL. Int. j. of Social Science and Economic Research, 3(4), 1356-1371. Retrieved from ijsser.org/more2018.php?id=95
Chicago
Joseph, Dr Jojo K., and Rani Jacob. "ANTECEDENTS OF TAX COMPLIANCE AMONG MSME'S UNDER GOODS AND SERVICE TAX [GST] REGIME: A CONCEPTUAL MODEL." Int. j. of Social Science and Economic Research 3, no. 4 (April 2018), 1356-1371. Accessed , 2018. ijsser.org/more2018.php?id=95.

References
[1]. Palil, M. R., & Ibrahim, M. A. (2011, July). "The Impacts of Goods and Services Tax on Middle Income Earners in Malaysia". World Review of Business research, 1(3), pp.192-206.
[2]. Kotnal, J. R. (2016, February). "GST in India: An enrichment of Indirect Taxation System". International Journal of Applied Research, 2(4), pp.735-738.
[3]. CChen, L. E., & Taib, M. B. (2016, October). "Goods and Service Tax(GST): Challenges Faced by Business Operators in Malaysia". EDP Sciences.
[4]. MSME Development Institute. (2015, March). MSME. Retrieved from www.msmedithrissur.gov.in: http://www.msmedithrissur.gov.in/pdf/state%20profile%2014-15.pdf
[5]. Suman, S. (2017, August). "Study on New GST Era and Its Impact on Small Businesses Entreprenuers". Journal of Accounting, Finance, 1(2), pp.24-36.
[6]. Ramli, R., Palil, M. R., Hassan, N. S., & Mustapha, A. F. (2015). "Compliance Cost of Goods and Service Tax(GST) among Small and Medium Enterprises". jurnal pengurusan, 45, pp.39-48.
[7]. Gerxhani, K., & Scharm, A. (2002). "Tax Evasion and Source of Income. Tinbergen Institute . Netherland: Tinbergen institute".
[8]. Gee, R. W., Ho, S. S., & Li, A. Y. (2007). "A comparitive Study on Perceived Ethics of Tax Evasion: Hong Kong Vs The United States". Journal of Business ethics, 77, pp.147-158.
[9]. Akinboade, O. A. (2015). "Correlates of Tax Compliance of Small and Medium Size Businesses in Cameroon". Managing Global Transitions, pp.389-413.
[10]. Giles, D. E., & Caragata, P. J. (1999). The learning path of the Hidden Economy: The tax burden and tax evasion in New Zealand. University of Victoria, Department of Economics. Canada: Victoria University.
[11]. Vij, J., Khanna, A., & Srivastava, P. (2017). "Informal Economy in India: Setting the Framework for Formalisation". New Delhi: Federation of Indian Chambers of Commerce and Industry.
[12]. Ehrich, L., & Billet, S. (2004). "Learning New Practices in Small Business: Engagement and Localised Support". Education and Training, 46(8-9), pp.501-509.
[13]. Palil, M. R., & Mustapha, A. F. (2011, December 21). "Factors Affecting Tax Compliance Behaviour in Self Assessment System". African Journal of Business Management, 5(33), pp.12864-12872.
[14]. Jaya, A. (2017, August). "Analysis of Effect of Knowledge and Service Quality, Accessibility of Information, Awareness and Behavior of Taxpayers and Impact on Satisfaction and Compliance With Taxpayers of Land and Buildings in The City Batam Island Riau Province". International Journal of Business and Management Invention, 6(8), pp.73-83.
[15]. Ling, S. C., Osman, A., Muhammad, S., Yeng, S. K., & Jin, L. Y. (2016). "Goods and Services Tax (GST) Compliance among Malaysian Consumers: The Influence of Price, Government Subsidies and Income Inequality". Procedia Economics and Finance, 35, pp.198 - 205.
[16]. Atawodi, O. W., & Ojeka, S. A. (2012, June). "Factors that Affect Tax Compliance among Small and Medium Enterprises (SMEs) in North Central Nigeria". International Journal of Business and Management, 7(12), pp.87-96.
[17]. Brooks, N. (2001). "Key Issues in Income Tax: Challenges of Tax Administration and Compliance". Asian Development Bank.
[18]. Palil, M. R. (2010). "Tax Knowledge and Tax Compliance Determinants in Self Assessment System in Malaysia". Malaysia: University of Birmigham.
[19]. Chau, G., & Leung, P. (2009, July). "A Critical Review of Fischer Tax Compliance Model: A Research Synthesis". Journal of Accounting and Taxation, 1(2), pp.034- 040.
[20]. A Bidin, Z., & Marimuthu, M. (2014). "The Perception of Manufacturing Companies towards the Proposed Goods and Service Tax in Malaysia". University of Utara Malaysia, School of Accountancy. Malaysia: ResearchGate.
[21]. Pope, J., & Jabbar, H. A. (2008). "Tax Compliance Costs of Small and Medium Enterprises in Malaysia: Policy Implications". Curtin University of Technology, School of Economics and Finance. Malaysia: Curtin University of Technology.
[22]. Parasuraman, A., Zeithml, V. A., & Berry, L. L. (1988). "SERVQUAL: A Multiple Item Scale for Measuring Consumer Perceptions of Service Quality". Journal of Retailing, 64(1), pp.12 -40.
[23]. Chen, C. W. (2010, July 1). "Impact of Quality Antecedents on Taxayer Satisfaction with Online Tax- filing Systems- An Empirical Study". Information and management, 47, pp.308-315.
[24]. Connoly, R., & Bannister, F. (2008). "E- Tax Filing & Service Quality : The Case of the Revenue Online Service". International Journal of Economics and Management Engineering, 2(2), pp.56-60.
[25]. Ali, M., Asmi, F., Rahman, M. M., Malik, N., & Ahmad, M. S. (2017, September). Evaluation of E-Service Quality through Customer Satisfaction( A Case Study of FBR E Taxation). Open Journal of Social Sciences, 5, pp 175-195.
[26]. Nurhayati, N., Halimatusadiah, E., & Diamonalisa. (2015). "Influence of Tax Officer Service Quality and Knowledge of tax on Individual Taxpayer Compliance in Tax Office Bojonagara Bandung". International Journal of Applied Research, 1(8), pp. 805-809.
[27]. Mustapha, B., & Obid, S. (2015, December). "Tax Service Quality: The Mediating Effect of Perceived Ease of Use of the Online Tax System". Procedia Social and Behavioral Sciences, pp.172, 2-9.
[28]. Stinglingh, M. (2014). "Service Quality Framework for the South African Revenue Service from the Perspective of the Tax Practitioner". Public Relations Review, 40, pp.240-250.
[29]. Ttaffi, L. A., & Jabbar, H. A. (2016). "Service Quality and Income Tax NonCompliance among Small and Medium Enterprises in Yemen". Journal of Advanced Research in Business and Management Studies, 4(1), pp.12-31.
[30]. Oliver, R. (1980). "A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions". Journal of Marketing Research, 17(11), pp.460-469.
[31]. Awaluddin, I., & Tamburaka, S. (2017)." Effect of Service Quality and Taxpayer Satisfaction on Compliance Payment Tax Motor Vehicles Office at One Roof System in Kendari". International Journal of Engineering and Science, 6(11), pp.25-34.
[32]. JJofreh, M., & Aida , R. (2014). "An Investigation on the Effect of Improving Taxpayer Satisfaction VAT department in Tehran". International Journal of basic sciences & Applied Research, 3, pp.198-203.
[33]. Debere, T. (2014). "Business Taxpayer's Satisfaction with the Tax System in Addis Ababa, Ethiopia". Department of Accounting and Finance. Ethiopia: Addis Ababa University.
[34]. WYesegat, W. A., & Fjeldstad, O. H. (2016). "Business People's View of Paying Taxes in Ethiopia". ICTD . Brighton: Institute of Development Studies.
[35]. Ali, M., Fjeldstad, O. H., & Sjursen, I. H. (2013). "To pay or Not to Pay? Citizen's Attitude towards Taxation in Kenya, Tanzania, Uganda, and South Africa. Tanzania": Afrobarometer.
[36]. Hasseldine, J., Holland, K., & Rijt, P. V. (2009). "The management of tax knowledge". London: The Association of Chartered Certified Accountants.
[37]. Mukhlis, I., Utomo, S. H., & Soesetio, Y. (2015, September !5). "The Role of Taxation Education on Taxation Knowledge and Its Effect on Tax Fairness as well as Tax Compliance on Handicraft SME Sector in Indonesia". International Journal of Financial Research, 6(4), pp.161-169.
[38]. McKerchar, M. (1995). "Understanding Small Business Taxpayers: Their Sources of Information and Level of Knowledge of Taxation". Australian Tax Forum, 12(1), pp.25-41.
[39]. Gitaru, K. (2017). "The Effect of Taxpayer Education on Tax Compliance in Kenya". University of Nairobi, School of Economics. Kenya: Munich Personal RePEc Archive.
[40]. Shamsuddin, A., Ruslan, M. I., Halim, A. A., & Zahari, N. F. (2014, June). "Educators' Awareness and Acceptance towards Goods and Services Tax (GST) Implementation In Malaysia: A Study in Bandar Muadzam Shah, Pahang". International Journal of Business, Economics and Law, 4(1), pp 1-10.
[41]. Jalil, N. A., Samsudin, N., Sarun, A., Ramli, N. R., & Hashim, E. (2015, December)." Public Awareness, Knowledge and Understanding of GST". International Journal of Management and Applied Science, 1(11), pp.21-24.
[42]. Adimasu, N. A., & Daare, W. J. (2017, November). "Tax Awareness and Perception of Taxpayers and Their Voluntary Tax Compliance Decision: Evidence from Individual Tax Payers In Snnpr, Ethiopia". International Journal of Scientific and Research Publications, 7(11), pp. 686-695.
[43]. Saira, K., Zariyawati, M. A., & May, Y. (2010). "An Exploratory Study of Goods and Service Tax in Malaysia". Political Managements and Policies in Malaysia.
[44]. Rahayu, Y. N., Setiawan, M., Afnan, E. A., & Sudjatno. (2017). "The Role of Taxpayer Awareness, Tax Regulation and Understanding in Taxpayer Compliance". Journal of Accounting and Taxation, 9(10), pp.139-146.
[45]. Abdul, M. (2001). 'Personal Income Tax Non-Compliance in Malaysia". Melbourne: VictoriaUniversity.
[46]. Zulaikha, & Nugroho, R. (2012). "Willingness to Pay Taxes, Pay Taxes Awareness, Knowledge and Understanding of Taxpayers, a Good Perception of the Effectiveness of the Taxation System, Service Quality". Dipenegoro. J. Account, 1(2).
[47]. Kasipillai, J., & Abdul Jabbar, H. (2006, July). "Gender and Ethinicity Differences in Tax Compliance". Asian Academy of Management Journal, 11(2), pp.73-88.
[48]. Saad, N. (2014). "Tax Knowledge, Tax Complexity and Tax Compliance: Tax Payers View". Procedia- Social and Behavioral Sciences (pp. 1069-1075). Malaysia: ScienceDirect.
[49]. Oladipupo, A. O., & Obazee, U. (2016). "Tax Knowledge, Penalties and Tax Compliance in Small and Medium Scale Enterprises in Nigeria". iBusiness, 8, pp.1- 9.
[50]. Boonyarat, N., Sofian, S., & Wadeecharoen, W. (2014). "The Antecedents of Tax Payer Compliance Behavior and Effectiveness of Thai Local Government Levied Tax". IBT Journal of Business Studies, 9(1), pp.23-39.
[51]. Kamil, N. I. (2015). "The Effect of Taxpayer Awareness, Knowledge, Tax Penalities and Tax Authority Services on the Tax Compliance". Research Journal of Finance and Accounting, 6(2), pp.104-111.
[52]. Hidayat, N. R. (2014). "Measurement Model of Service Quality, Regional Tax Regulations",. World Applied Sciences Journal, 29(1), pp.56-61.
[53]. Mamun, A. A., Entebang, H., Mansor, S. A., & Yasser, Q. R. (2014, January). "The Impact of Demographic Factors on Tax Compliance Attitude and Behavior in Malaysia". Journal of Finance, Accounting, and Management, 5(1), pp.109-124.
[54]. Widianto, R. (2015). "The Effect of Demographic Factors on Individual Tax Compliance in Duren Sawit". International Institute of Social Studies. Hague: International Institute of Social Studies.
[55]. Maranadu, E., Mbekomize, C., & Ifezue, A. (2014). "Determinants of Tax Compliance: A Review of Factors and Conceptualization". University of Botswana, Department of Marketing and International Business. Dubai: Proceedings of the First Middle East Conference on Global Business, Economics, Finance and Banking.
[56]. Mustapha, B. (2010). The Impact of Tax Fairness and Demographic Factors on Tax Compliance in Nigeria. Malaysia: University of Utar Malaysia.
[57]. Antwi, S. K., Inusah, A. M., & Hamza, K. (2015, March). The Effect of Demographic Characteristics of Small and Medium Entrepreneurs on Tax Compliance in The Tamale Metropolis, Ghana. International Journal of Economics, Commerce and Management, 3(3), pp 1-20.
[58]. Devos, K. (2008). Tax Evasion Behaviour and Demographic Factors:An Exploratory Study in Australia. Revenue Law Journal, 18(1), pp 1-45.
[59]. Alabede, J. O. (2014, June). "An Exploratory Analysis of Individual Taxpayers Compliance Behavior in Nigeria: A Study of Demographic Differences and Impact". International Journal of Accounting and Taxation, 2(2),pp. 39-64.
[60]. FJeldstad, O. H. (2012). "Peoples View of Taxztion in Africa: A Review of Research on Determinants of Tax Compliance. Africa": Chr. Michelsen Institute.
[61]. Ahmad, M. A., Ismail, Z., & Halim, H. A. (2016). "Awareness and Perception of Taxpayers towards Goods and Services Tax (GST) Implementation". International Journal of Academic Research in Business and Social Sciences, 6(11), pp.75-93.
[62]. Ameyaw, B., Korang, J. A., Twum, E. T., & Asante, I. O. (2016). "Tax policy, SME's Compliance, Perception and Growth Relationship in Ghana: An Empirical Analysis". British Journal of Economics, Management & Trade, 11(12), pp.1-11.
[63]. Asmuni, S., Yousoff A., Ses N.S. (2017). "Acceptance towards Goods and Services Tax among Local Business Communities". Journal of Emerging Economics and Islamic Research, pp.62-72.
[64]. EY. (2016). "All about GST in India". Retrieved from www.ey.com: http://www.ey.com/In/en/services/ey- goods-and-services-tax-gst
[65]. Kibert, A. (2016). "Determinants of Tax Compliance Behavior of Large Corporate Taxpayer's in Ethiopia". College of Business and Economics, Department of Accounting and Finance. Addis Ababa: Addis Ababa University.
[66]. Kuria, J., & Omboi. (2016, June). "Taxpayer's Attitudes and Tax Compliance Behaviour in Kenya: A Survey of Top 100 SME's". IOSR Journal of Business and Management, 18(6), pp 61-70.
[67]. Lamberton, C., De Neve, J. E., & Norton, M. I. (2014). "Eliciting Tapayer Preferences Increases Tax Compliance". The London School of Economics and Political Science. London: Economic and Social Research Council.
[68]. Michael Keen, B. L. (2007). "The Value Added Tax: Its Causes and Consequences". IMF Working paper.
[69]. Pope, J. (2001, January 01). "Estimating and Alleviating the Goods and Service Tax Compliance Cost Burden upon Small Business". Revenue Law Journal.
[70]. Vadde, S., & Gundarapu, S. (2012, October). "Factors That Influence Rental Taxpayers Compliance with Tax System: An Empirical Study of Mekelle City Ethiopia". Journal of Arts, Science & Commerce, 3(4(2)), pp.41-49.

Abstract:
Indirect tax is a major source of revenue in many countries including India. Goods and Service Tax, introduced very recently in India, is one such of tax that is expected to contribute heavily to the exchequer. Even though the Micro Small and Medium Enterprises [MSMEs] are recognized as the primary growth drivers of the Indian economy, their tax compliance record is poor. The main purpose of this study is to examine the inter relations between various factors in determining the tax compliance behavior of MSMEs under Goods and Service Tax regime. This paper undertakes an extensive review of literature on compliance in taxation and proposes a conceptual framework indicating the influences of factors such as MSME's awareness, tax knowledge, satisfaction, demographic factors and service quality of tax officials on MSME's tax compliance. This paper attempts to provide a better understanding of how the determinants influence MSME's compliance under GST system and thus enables the policy makers and MSMEs themselves to implement strategies to improve the tax compliance. The conceptual model proposed in this study can be validated through empirical testing.

IJSSER is Member of