Thursday, July 5, 2012

Type of Taxes in India.

Taxation in India is very complex and high rates. I here brief of all taxes in simple manner. In India many taxes levied on many different income and transaction. but we can divide all taxes in following two broad category

1. Direct Tax
2. Indirect Tax.


1. Direct Tax


Direct Tax directly levied on your Income. Like Income Tax.

Income Tax is directly levied on your Income.


2. Indirect Tax


Indirect Tax is not levied directly on your Income. but this pay by user indirectly in form sales tax, service tax, excise duty etc.

2(a) Sales Tax/ Commercial Tax

This tax charges on sales.

1. State Tax (Value Added tax VAT)

When we sale the Goods with in the state then charge VAT.

2. Central Sales Tax (CST)

When we sale goods out of the state but with in the country then charge CST.

2(b) Service Tax


This tax charges by service provider when they give service to any service receiver. Like Consultancy services, Hospitals, Event Management etc..

2(c) Excise Duty


This tax levied on Production.

2(d) Custom Duty


In case of Import and Export this tax levied.

3 comments:

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