Types of Tax Structure in India: Taxes in India are imposed by the Central Government and the state governments. Some minor taxes like Sales Tax are also imposed by the local authorities such as the Municipality. In order to materialize the policies the government needs capital and for this taxes are imposed from individuals and businesses.
There are Different Types of Taxes in India which are Given Below:
The Sales Tax should be paid by a person who is selling some product or doing business. Sales Tax Registration is mandatory for any business entity with a turnover of over Rs. 5 lakhs engaged in the sale of goods in India. The business man has to pay income tax based on his profit.
The person whose total income exceeds taxable limit has to pay income tax based on prevailing rates applicable time to time. It is very much important that every citizen should pay tax to the government. The taxes may be the direct taxes or the indirect taxes.
Most of the paid services which you take, you have to pay service tax on those services. The service tax can be imposed in various fields like tour operator, architect, interior decorator, advertising, beauty parlor, health center, banking and financial service, event management, maintenance service, consultancy service.
Value Added Tax:
The tax imposed by Central government on sale of goods is called as Sales tax same or the Value added tax by state government. The VAT rates vary based on nature of item and state.
Custom duty & Octroi:
Custom Duty is an indirect tax charged on goods imported into India. The tax should be paid usually at airport on goods that are imported from a foreign country into India. Octroi is tax applicable on goods entering from other state. This tax is called Entry Tax.
The excise duty is a type of tax charged on goods produced within the country. The person who is the manufacturer of goods or who hire labor to manufacture goods is liable to pay the excise duty.
The earning professional you need to pay professional tax which is imposed by respective Municipal Corporations. This tax is paid by every employee working in Private organizations. The tax is deducted by the employer every month and remitted to the Municipal Corporation.
The Municipal Corporation in every city imposed tax in terms of property tax. Owner of every property has to pay this tax and this tax rate varies in every city.
The Tax is also applicable on Entertainment which is imposed by state government on every financial transaction that is related to entertainment such as movie tickets, major commercial shows exhibition, broadcasting service, DTH service and cable service.
Stamp Duty, Registration Fees, Transfer Tax:
While purchasing a property, in addition to cost paid to seller you must consider additional cost to transfer that property on your name and that cost include registration fees, stamp duty and transfer tax. The amount may vary from property to property based on cost.