On Which Dimensions Taxes are based on?

427 views 1 replies

Hello all,

I need a small help. It would be so nice of you if you can share some knowledge.

Little background: I need to know about various taxes those are involved per transaction. In other words, those taxes that come in to picture while selling/purchasing anything. Yet in other words, those taxes that are journalists per invoice. You know what i mean?

As per my current knowledge, those are
A. VAT
B. Sales tax /CST (I think both are same)
C. Service tax
D. Excise duty
E. custom duty

[PL let me know if this is incorrect or incomplete]

Now the real question.
I want to know various factors that play role while determining amount of tax applicable (percentage of tax, or flat tax, or slabs etc). For example, for vat, as per my knowledge it is based on Type Of Good, and State where it is traded. Whereas service tax is based on type of service, there is a threshold (no-tax limit), depends on where service receiver is located, etc.

What are bases on which these taxes are dependent on? I want to know those complexities.

Please do let me know if anything is unclear. Thanks in advance.

Regards,
Piyush

Replies (1)

Dear friend according to me:

A. VAT is the amount of TAX charged on the value addition to the particular product incase of no value adition no VAT will be charged.
B.CST is Central sales TAX which is charged only when there is inter state transaction take place.
C. Service tax is charged @ 10.3% 
D. Excise duty is charged as per the chapter ID the product is related but a manufacturing process is must for charging Excise.
E. custom duty is charged in case of Import and Export anything.

About complexity you said it will be better to refer Books.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register