India is a developing country, supports a different kind of businesses and industries. Most businesses are run by Indians and some are run in collaboration with foreign traders. To whomsoever, it may concern they have to pay several kinds of tax to the Indian Government. In short, it is a complex task to understand Indian tax structure and types of taxes. In regards to this income tax consultant charted accountant help businesses or work on their behalf to tackle these complex glitches related to income tax.
Paying taxes is good for the development of the country but as an individual and a business entity, you should know about different kind of taxes imposed by central government and state government on individual, businesses and industries. The tax accounting firms help you in this regard. They are expert of taxation and know how to save your money and reduce your tax liability.
Let’s know about different kind of taxes:
Direct Taxes: Such taxes are imposed directly and paid to the government of India. Such taxes are:
- Income Tax: Every individual is aware of this tax. When your total income goes beyond the taxable limit, you need to pay income tax to the government as per applicable rates.
- Capital Gain Tax: It is imposed over the profit you gained on selling a property, bonds, shares etc. It is of two types’ long-term capital gain and short-term capital gains.
- Securities Transaction Tax: Most of the people do not declare their capital gain. Hence to fight with this situation government has imposed STT tax on each and every transaction via stock exchange and mutual funds.
- Perquisite Tax: It is the tax imposed on benefits provided by the company to its employees such as transport facility etc.
- Corporate Tax: Every corporate operating in India either domestic or International has to pay corporate tax annually.
Indirect Taxes: It is a tax imposed on goods and services instead of profit and gains. These are:
- Sales Tax: It is imposed on movable goods. It is categorized into three parts.
- Inter-State Sale
- Sale during import/export
- Intra State (within a state)
State government imposes charges on goods and services within the state.
- Service Tax: Almost all the services for that you have to pay for comes under service tax such as taxi service.
- Customs Duty and Octroi: It is imposed on goods that are imported from another country. Such taxes are paid on the point of entry like airports and seaport or harbours.
- Excise Duty: Also known as CVAT (Central Value Added Tax) imposed on a good that are produced or manufactured in India only.
- Anti Dumping Duty: It is imposed on goods that are sent or exported to another country at a lower price than its normal value.
Some other taxes for that you need income tax advisors are:
Municipal Tax: The owners of each property have to pay this tax to their respective municipal corporation as a property tax. The tax varies from state to state.
Entertainment Tax: Every monetary transaction that is related to your entertainment comes under entertainment tax such as movie tickets etc.
Stamp Duty, Registration Fee, and Transfer Tax: When you buy a property you need to pay this tax for transferring the papers of said property at your name. This tax is independent of the cost of the property you have paid or you are going to pay.
To tackle with complex tax calculations and laws related to above-mentioned taxes you need to contact some best CA firms in Delhi.