TAX STRUCTURE IN INDIA:
The Tax that are being levied in India is given below. If we need to do a business then we have to pay tax more than our investment.
If you are doing Business then you have to PAY PROFESSIONAL TAX!Professional Tax is a tax imposed on the salaried people working govt.or nongovt offices or doing Business. ProfessionalTax deducted from the salary is payable to the State Govt where the employees office / company situated. But not all the state govt imposed professional Tax. in some states there is no p/tax. There are various slabs of p/tax according to the pay range
What happens when it comes with Business? If you are selling goods in Business then you have to PAY SALES TAX!! A tax levied by a state or city on the retail price of an item, collected by the retailer.
But again a question arises, From where you are getting these Goods to sell them? If it is from other state or country then you have to PAY CENTRAL SALES TAX, CUSTOM DUTY & OCTROI! Customs means a federal agency responsible for monitoring imported goods and collecting duties.
If your business is in profit from selling these goods then you have to PAY INCOME TAX! It is an Annual tax levied by the Federal government, most states, and some local governments, on an individual’s or corporation’s net profit.
If you are Manufacturing the Goods in Factory then you have to PAY EXCISE DUTY!and moreover if you own a factory then you have to PAY MUNICIPAL & FIRE TAX! For employing staff’s in your factory you have to PAY STAFF PROFESSIONAL TAX!
If you are doing business in Millions then you have to PAY TURNOVER TAX ! And now comes the worse. Even for withdrawing cash from the bank you need to pay tax.If you take more than 25,000 the you need to pay cash handling tax.
Next is FOOD & ENTERTAINMENT TAX! If you are taking your client for lunch or dinner to hotel then you have to pay tax for that also.
Are you going Out of Station for Business?If yes then PAY FRINGE BENEFIT TAX! If you have taken or given any Service/s? then PAY SERVICE TAX! Even if you get a big amount as a gift for your birthday, you have to PAY GIFT TAX! We might go out to Cinema or some place for entertainment then you need to need to pay ENTERTAINMENT TAX!
The other taxes that you have to pay are
PAY STAMP DUTY & REGISTRATION FEE ! for purchasing house.
How you Travel?Through Bus then PAY SURCHARGE!
PAY EDUCATIONAL, ADDITIONAL EDUCATIONAL & SURCHARGE ON ALL THE CENTRAL GOVT.’s TAX !!!
Thank God, there is no tax being levied for walking in the road.Dont know where the Business people will go if they pay all these taxes.But we need to pay tax inorder to develop our countries Economic.There are many people who are not paying taxes which ultimately leads to the declination of country’s economic growth.
Tax decides the fate of the country.