Influence And Countermeasure Research Of Replacing Business Tax With Value-added Tax For Project Cost Management In Construction Contractors

Released by the Ministry of Finance and the State Administration of Taxation in 2011,"the Finance and Taxation[2011]NO.110" pointed out that the construction industry adopted the value-added tax rate for 11%which made the reform of the construction industry clearly,"replacing business tax with value-added tax" has been officially put on the agenda,and it was imperative for the construction industry to replace business tax with value-added tax,and it was officially implemented on May 1,2016.The reform measure is not only necessary for the development of the construction industry itself,but also for the development of national economy.The implementation of the "replacing business tax with value-added tax" is a matter of the survival and development of the construction contractors,it will bring great challenges to various aspects such as the enterprises' organization,operation mode,cost composition,the system process and others,and it will also bring a new management mode.The paper mainly studies the influence and countermeasure research of replacing business tax with value-added tax for project cost management in construction contractors.First of all,the paper introduces the background and research purpose of "replacing business tax with value-added tax ",on the basis of the research results at home and abroad,the paper masters the content of the policy of " replacing business tax with value-added tax ",and objectively analyzes the significance of " replacing business tax with value-added tax”in construction contractors.The characteristics of construction contractors is described in the paper,the tax system changes from business tax to value-added tax is compared,the paper also provides the cost calculation,cost composition elements of the project,the features of cost management and six processes of cost management in the construction contractors,and it provides the theoretical basis for the paper.Secondly,"the Change from Business Tax to Value-Added Tax" project cost factors was identified through the literature review,case study and theoretical calculation.And based on the analytic hierarchy process(AHP),the key control points for the cost management of "the Change from Business Tax to Value-Added Tax "project of the construction contractor company was also determined,according to the key control points,impacting on key control points of " the Change from Business Tax to Value-Added Tax " project cost management were illustrated.In the end,the paper puts forward the specific measures in improving bidding management in the stage of cost prediction,optimizing purchasing management and standardizing subcontracting management in the cost planning process,standardizing invoice management,strengthening the management of financial staffs,strengthening settlement management and enhancing information construction in the cost control process,it provides effective reference methods for cost management in construction contractors after the implementation of replacing business tax with value-added tax,so that the enterprises can adapt to the changes of the policy in the aspect of management and create higher profits,and achieve the refined management.