Posts

Tax Law In India, Types of Tax In India

Image
  In India, tax laws are governed by the Central Board of Direct Taxes (CBDT) and the Central Board of Indirect Taxes and Customs (CBIC). These boards are responsible for administering and enforcing tax laws in India. There are two main types of taxes in India: direct taxes and indirect taxes. Direct taxes are taxes that are paid directly to the government by the individual or entity that is liable to pay the tax. Examples of direct taxes include income tax and wealth tax. Indirect taxes, on the other hand, are taxes that are levied on the sale of goods and services. These taxes are collected by the government from the seller of the goods or services and are passed on to the consumer in the form of higher prices. Examples of indirect taxes include value-added tax (VAT) and central excise duty. The Indian Income Tax Act of 1961 is the primary legislation governing income tax in India. Under this Act, individuals and companies are required to pay income tax on their earnings at the r...
Post a Comment
Read more

Goods & Services Tax GST (India) What is GST?

1. What is GST in India? GST is known as the Goods and Services Tax. It is an indirect tax which has replaced many indirect taxes in India such as the excise duty, VAT, services tax, etc. The Goods and Service Tax Act was passed in the Parliament on 29th March 2017 and came into effect on 1st July 2017. In other words,Goods and Service Tax (GST) is levied on the supply of goods and services. Goods and Services Tax Law in India is a comprehensive, multi-stage, destination-based tax that is levied on every value addition. GST is a single domestic indirect tax law for the entire country. 2. The Journey of GST in India The GST journey began in the year 2000 when a committee was set up to draft law. It took 17 years from then for the Law to evolve. In 2017, the GST Bill was passed in the Lok Sabha and Rajya Sabha. On 1st July 2017, the GST Law came into force. 3. Objectives Of GST 1) To achieve the ideology of ‘One Nation, One Tax’ GST has replaced multiple indirect taxes, which were existi...
Post a Comment
Read more