Indirect taxes in india

Is there any indirect tax in India other than GST? How is an indirect tax different from a direct tax? What is indirect tax and types?

The excise tax applicable to alcohol and cigarettes is a common instance of indirect tax. Almost every product that is consumed comes with indirect tax. This indirect tax is payable by the manufacturers and often passed on to the customers.

Entertainment tax (unless it is levied by the local bodies). State Cesses and Surcharges on the supply of goods and services. Taxes on lottery, betting and gambling. Indirect taxes pervade every area of a company’s business.

Their impact on material and product costs, cash flow, profitability an ultimately, on shareholder value is an important element to stay ahead in competition. The India ’s indirect tax structure is weak and produces cascading effects. The structure was by, and large uncertain and complex and its administration was difficult. Currently, as outlined above, there are three types of taxes that may be applied to the transfer of goods and services throughout India.

Each one of these taxes requires different documentation and registration.

Custom Duty is an indirect tax levied on import or export of goods in and out of country. When goods are imported from outside, the tax known as import custom duty. On the other han indirect taxes are levied on the sale and provision of goods and services respectively and the burden to collect and deposit taxes is on the sellers instead of the assessees directly. India , the tax is known as export custom duty.

Access IRS Tax Forms. See all full list on moneyexcel. Complete, Edit or Print Tax Forms Instantly. Free for Simple Tax Returns. Maximum Refund Guaranteed. Industry-Specific Deductions. Get Every Dollar You Deserve.

Sales Tax: The tax that levies on the sales of goods. Service Tax: This tax is an indirect tax that taxpayers have to pay service tax on paid services. Custom Duty and Octroi Tax:. Direct taxes are directly paid to the government by the tax payer.

Value Added Tax: This type of tax is collected by the state government. GST is a centralized tax structure on goods and services throughout the country, which would subsume about or more taxes in one kitty. To that effect, the GST will replace all other taxes levied by the state and central governments.

As per currently available data, goods and services will be taxed according to specific rates of , , ,. An indirect tax is one that can be shifted by the taxpayer to someone else. The federal and state government will concurrently impose the GST on almost all goods and services produced in India or imported into the country. Other Than Corporation.