Indirect Tax

 
These types of taxes paid on Consumption by the consumer but they do not pay directly to the government (unlike income tax). For example, We pay VAT and other taxes on purchasing a product.
Types of Indirect Taxes in India
Here are several types of indirect taxes available in Indian Constitution Bill. 
A. Sales Tax:
The tax that levies on the sales of goods. Union Government imposes the sales tax on the Inter-State sale, while the sale tax on Intra-state sale is levied by the State Government. This tax is divided into three segments as Inter-State Sale, Sale during import/export and Intra-State sale.
B. Service Tax:
This tax is an indirect tax that taxpayers have to pay service tax on paid services. Paid services are the telephone, tour operator, architect, interior decorator, advertising, health center, banking and financial service, event management, maintenance service, consultancy service. The Interest on the service tax is 15%.
C. Value Added Tax:
This type of tax is collected by the state government. For an example, if we purchase a good then we must pay an additional tax as Value Added Tax to the government. VAT rate is decided based on nature of item and state.
D. Custom Duty and Octroi Tax:
This tax is levied on those goods that are imported into India from outside. The Custom Duty tax is paid at the port of entry in the country as the airport. This tax rate also varies over the nature of goods. While the Octroi tax is charged on the goods entering the municipality.
E. Excise Duty:
The is also an indirect tax that levies on the goods which, are produced within the country. This tax is not related to the Custom Duty. Excise Duty is also known as Central Value Added Tax.
F. Anti Dumping Duty:
This tax is levied when the goods are exported at a price lower than its normal price by the nation to another nation. The Central government has imposed this tax.
G. Newly Implemented Indirect Tax (GST)
Goods and service tax is the most ambitious tax regime in India and also the latest indirect tax introduced in the Indian constitution. The significance of this tax scheme is that it will subsume all the other indirect taxes prevailing in the nation. The scheme has been introduced to make a shift in the Indian economy as to reduce the cascading effects of the tax duties making an overall inflation in the market.
There are various forms of GST which have been introduced namely:
 
• SGST (State GST) – The SGST will be handled by the state government in       which all the taxes collected under the state provision will come under the SGST
• CGST (Centre GST) – CGST is a central GST which will be collected by the central government on account of every transaction having an interstate
• IGST (Integrated GST) – Integrated GST will be charged whenever a transaction occurs between two states with a share of state and centre both with a specified proportion decided.

Speak with Our Professionals Now

Call (027) 728-98765