Statutory Compliance:
Indirect tax:
This tax is not collected directly from the persons it is collected indirectly through goods and services through a person who acts as intermediary by selling the goods and services.
Examples of Income tax are Value Added Tax(VAT),Service tax,Sales tax etc.
Recently valid tax that is prevailing all over is GST (Goods and Services tax).
GST the largest reform in India that is established since 25 years i.e. it is available since the market opened up.This tax is applicable only when the Consumption takes place.It is levied on the value added goods and services at each stage of consumption in the supply chain.
GST payable on the procurement of goods and services can be set off against the GST payable on the supply of goods and services, the merchant will pay the applicable GST rate but can claim it back through the tax credit mechanism.
Service Tax:
Service tax is not implied on the companies that provide goods and services but it is imposed on the companies that provide services to the products .It is collected every month or once in every quarter based on the services provided.For companies service tax is applicable as soon as the invoice is raised irrespective of the customer's bill payment however if it is an individual's establishment then the service tax is applicable only if the bill payments are done.
for those who are on hotels category service tax is combination of food,waiter's service and the usage of premises so it is difficult to pin point the service tax therefore government has issues 40% of service tax on the bill.
Sales Tax:
Sales tax is levied on the sale of products.Sales tax is the tax levied on the products that are produced in India or imported and tax is also laid on the services rendered.Sales tax is levied on the person who sells(seller) and seller imposes the same tax on the buyer i.e. customer. If the product is reselled again then tax cannot be levied on it further.
Every seller has his own sales tax on the products and there are some other taxes that similar to sales tax like turnover tax,purchase tax,transaction tax etc. that is why Sales tax acts as largest revenue generators for various state governments.
Value Added Tax:
VAT is not levied on end products or commodities it is levied in different stages of the supply chain of the product starting from 1st to last stage i.e. from manufacture of the product, dealership, distribution to the end user.
The vat is decided by the particular state itself.VAT is divided into certain schedules or stages of the product for suppose if a product is divided into three stages then at the first stage it is 1% at the second stage it is 5% and so on.If VAT is not divided into stages then the standard tax is 15%.
Indirect tax:
This tax is not collected directly from the persons it is collected indirectly through goods and services through a person who acts as intermediary by selling the goods and services.
Examples of Income tax are Value Added Tax(VAT),Service tax,Sales tax etc.
Recently valid tax that is prevailing all over is GST (Goods and Services tax).
GST the largest reform in India that is established since 25 years i.e. it is available since the market opened up.This tax is applicable only when the Consumption takes place.It is levied on the value added goods and services at each stage of consumption in the supply chain.
GST payable on the procurement of goods and services can be set off against the GST payable on the supply of goods and services, the merchant will pay the applicable GST rate but can claim it back through the tax credit mechanism.
Service Tax:
Service tax is not implied on the companies that provide goods and services but it is imposed on the companies that provide services to the products .It is collected every month or once in every quarter based on the services provided.For companies service tax is applicable as soon as the invoice is raised irrespective of the customer's bill payment however if it is an individual's establishment then the service tax is applicable only if the bill payments are done.
for those who are on hotels category service tax is combination of food,waiter's service and the usage of premises so it is difficult to pin point the service tax therefore government has issues 40% of service tax on the bill.
Sales Tax:
Sales tax is levied on the sale of products.Sales tax is the tax levied on the products that are produced in India or imported and tax is also laid on the services rendered.Sales tax is levied on the person who sells(seller) and seller imposes the same tax on the buyer i.e. customer. If the product is reselled again then tax cannot be levied on it further.
Every seller has his own sales tax on the products and there are some other taxes that similar to sales tax like turnover tax,purchase tax,transaction tax etc. that is why Sales tax acts as largest revenue generators for various state governments.
Value Added Tax:
VAT is not levied on end products or commodities it is levied in different stages of the supply chain of the product starting from 1st to last stage i.e. from manufacture of the product, dealership, distribution to the end user.
The vat is decided by the particular state itself.VAT is divided into certain schedules or stages of the product for suppose if a product is divided into three stages then at the first stage it is 1% at the second stage it is 5% and so on.If VAT is not divided into stages then the standard tax is 15%.
No comments:
Post a Comment