List of taxes applicable to a manufacturing unit
This query is : Resolved
10 December 2012
Can anybody please give me a comprehensive list of various taxes, direct or indirect, levied by SG/CG/Local Authority, that are applicble to a manufacturing unit in India.
10 December 2012
Please refer the below link:-
https://www.caclubindia.com/forum/tax-structure-in-india-funny-but-true--224401.asp#.UMXRkFJK31U
https://www.caclubindia.com/forum/tax-structure-in-india-funny-but-true--224401.asp#.UMXRkFJK31U
02 August 2024
Certainly! In India, manufacturing units are subject to a range of taxes imposed by the Central Government (CG), State Governments (SG), and Local Authorities. Here's a comprehensive list of taxes that a manufacturing unit may be liable for:
### **1. **Direct Taxes**
**1.1 Income Tax:**
- **Corporate Tax:** Tax on the profits earned by companies under the Income Tax Act.
- **Minimum Alternate Tax (MAT):** A tax payable by companies if their tax liability under normal provisions is less than a specified percentage of their book profits.
**1.2 Tax Deducted at Source (TDS):**
- **On Payments to Vendors/Suppliers:** Tax deducted on payments made to contractors, professionals, etc.
- **On Salaries:** TDS on salaries paid to employees.
- **On Interest Payments:** TDS on interest paid to banks or financial institutions.
### **2. **Indirect Taxes**
**2.1 Goods and Services Tax (GST):**
- **Central Goods and Services Tax (CGST):** Collected by the Central Government on intra-State sales.
- **State Goods and Services Tax (SGST):** Collected by the State Government on intra-State sales.
- **Integrated Goods and Services Tax (IGST):** Collected by the Central Government on inter-State sales and imports.
- **Compensation Cess:** Applicable on certain goods and services, such as luxury items and sin goods.
**2.2 Customs Duty:**
- **Basic Customs Duty:** Levied on goods imported into India.
- **Additional Customs Duty (CVD):** A duty equivalent to the Central Excise Duty, levied on imported goods.
- **Special Additional Duty (SAD):** Levied on imported goods to compensate for sales tax/VAT.
**2.3 Excise Duty (Pre-GST Era):**
- **Central Excise Duty:** Levied on the manufacture of goods in India (this has been largely subsumed by GST for most goods).
### **3. **State Taxes**
**3.1 State Excise Duty:**
- **Levied on certain goods like alcohol and tobacco.**
**3.2 Sales Tax/VAT (Pre-GST Era):**
- **Value Added Tax (VAT):** A tax on the sale of goods within a state, applicable before the introduction of GST.
**3.3 Stamp Duty:**
- **On Registration of Documents:** Levied on documents related to the transfer of property and certain agreements.
**3.4 Profession Tax:**
- **Levied on professionals, traders, and employers in some states.**
### **4. **Local Taxes**
**4.1 Property Tax:**
- **Levied by local authorities on property owned by the manufacturing unit.**
**4.2 Municipal Tax:**
- **Local taxes imposed by municipal corporations or councils on services provided or infrastructure usage.**
**4.3 Trade License Fees:**
- **Fees charged by local authorities for operating a business or trade within their jurisdiction.**
**4.4 Water Charges:**
- **Charges for water supply used by the manufacturing unit, levied by local municipal bodies.**
### **5. **Other Taxes and Levies**
**5.1 Environmental Cess:**
- **Charges or taxes related to environmental protection and pollution control, imposed by state or central authorities.**
**5.2 Education Cess:**
- **Levied on various taxes (like income tax and excise duty) for funding educational programs.**
**5.3 Swachh Bharat Cess:**
- **Levied on certain services to fund sanitation and cleanliness programs.**
**5.4 Krishi Kalyan Cess:**
- **Levied on taxable services to fund agricultural and rural development.**
**5.5 National Pension System (NPS) Contributions:**
- **Contributions to the NPS for employees, applicable under the Income Tax Act.**
### **Compliance and Filing Requirements:**
- **Tax Returns:** Regular filing of tax returns for income tax, GST, and other applicable taxes.
- **Tax Payments:** Timely payment of taxes, including advance tax, TDS, and GST.
- **Documentation:** Maintenance of proper records, invoices, and other documentation for compliance and audits.
### **Conclusion:**
Each manufacturing unit's tax obligations may vary based on its location, industry, and operations. It is crucial to stay updated with changes in tax laws and regulations and consult with tax professionals or legal advisors for accurate compliance.
If you have any specific requirements or need further details on any of these taxes, please let me know!
### **1. **Direct Taxes**
**1.1 Income Tax:**
- **Corporate Tax:** Tax on the profits earned by companies under the Income Tax Act.
- **Minimum Alternate Tax (MAT):** A tax payable by companies if their tax liability under normal provisions is less than a specified percentage of their book profits.
**1.2 Tax Deducted at Source (TDS):**
- **On Payments to Vendors/Suppliers:** Tax deducted on payments made to contractors, professionals, etc.
- **On Salaries:** TDS on salaries paid to employees.
- **On Interest Payments:** TDS on interest paid to banks or financial institutions.
### **2. **Indirect Taxes**
**2.1 Goods and Services Tax (GST):**
- **Central Goods and Services Tax (CGST):** Collected by the Central Government on intra-State sales.
- **State Goods and Services Tax (SGST):** Collected by the State Government on intra-State sales.
- **Integrated Goods and Services Tax (IGST):** Collected by the Central Government on inter-State sales and imports.
- **Compensation Cess:** Applicable on certain goods and services, such as luxury items and sin goods.
**2.2 Customs Duty:**
- **Basic Customs Duty:** Levied on goods imported into India.
- **Additional Customs Duty (CVD):** A duty equivalent to the Central Excise Duty, levied on imported goods.
- **Special Additional Duty (SAD):** Levied on imported goods to compensate for sales tax/VAT.
**2.3 Excise Duty (Pre-GST Era):**
- **Central Excise Duty:** Levied on the manufacture of goods in India (this has been largely subsumed by GST for most goods).
### **3. **State Taxes**
**3.1 State Excise Duty:**
- **Levied on certain goods like alcohol and tobacco.**
**3.2 Sales Tax/VAT (Pre-GST Era):**
- **Value Added Tax (VAT):** A tax on the sale of goods within a state, applicable before the introduction of GST.
**3.3 Stamp Duty:**
- **On Registration of Documents:** Levied on documents related to the transfer of property and certain agreements.
**3.4 Profession Tax:**
- **Levied on professionals, traders, and employers in some states.**
### **4. **Local Taxes**
**4.1 Property Tax:**
- **Levied by local authorities on property owned by the manufacturing unit.**
**4.2 Municipal Tax:**
- **Local taxes imposed by municipal corporations or councils on services provided or infrastructure usage.**
**4.3 Trade License Fees:**
- **Fees charged by local authorities for operating a business or trade within their jurisdiction.**
**4.4 Water Charges:**
- **Charges for water supply used by the manufacturing unit, levied by local municipal bodies.**
### **5. **Other Taxes and Levies**
**5.1 Environmental Cess:**
- **Charges or taxes related to environmental protection and pollution control, imposed by state or central authorities.**
**5.2 Education Cess:**
- **Levied on various taxes (like income tax and excise duty) for funding educational programs.**
**5.3 Swachh Bharat Cess:**
- **Levied on certain services to fund sanitation and cleanliness programs.**
**5.4 Krishi Kalyan Cess:**
- **Levied on taxable services to fund agricultural and rural development.**
**5.5 National Pension System (NPS) Contributions:**
- **Contributions to the NPS for employees, applicable under the Income Tax Act.**
### **Compliance and Filing Requirements:**
- **Tax Returns:** Regular filing of tax returns for income tax, GST, and other applicable taxes.
- **Tax Payments:** Timely payment of taxes, including advance tax, TDS, and GST.
- **Documentation:** Maintenance of proper records, invoices, and other documentation for compliance and audits.
### **Conclusion:**
Each manufacturing unit's tax obligations may vary based on its location, industry, and operations. It is crucial to stay updated with changes in tax laws and regulations and consult with tax professionals or legal advisors for accurate compliance.
If you have any specific requirements or need further details on any of these taxes, please let me know!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- GST on export of services and Input Credit
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- TDS deduction (debit notes)
- Can a partnership firm become partner in a LLP ?
- Quiery in relation to GST liability in case of an advocate who has obtained GST registration.
- LAST YEAR 2022-23 ITC IN NEXT YEAR 2023-24 REPORITNG IN GSTR-9
- MIS MATCH OF INVOICE NUMBER
- IGST Credit-Show cause notice issued-confusion
- TDS on purchase of value vouchers for employees ?
- Issue of gst e invoice
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
Trending Online Classes
CAclubindia
