ASSESSMENT 16

Module 16 – Business has Tax implications

Every business is affected by taxes. In fact, tax is one of the most important aspect of the business. It
might be handled by the consultants, but it is important that the businessman knows the basics. Some
of the significant business developments took place because of tax. Reliance did not pay income tax for
first 30 years. Many industries shifted to Himanchal Pradesh for tax benefits. Wind and Solar power are
emerging partly because of environment and partly because of tax issues. One reason for places like
Dubai, Singapore and Hongkong coming up was the taxation aspect. To grow in business one must
understand importance of tax. Tax is levied by Municipal Corporation, State Government and Central
Government to meet their costs, for some social objectives and to build infrastructure. There are taxes
on :

Business – earlier it was Excise, Sales Tax, CST, Vat etc. which are all now replaced with GST. In GST there
are something like input credit and output GST.

Activities – Professional tax, Entertainment tax, Luxury tax etc.

Income – Income tax, Corporate income tax, Dividend distribution tax, Wealth tax, Gift tax etc.

Property – Property tax, Stamp duty, Water tax etc.

There are tax related terms.

1. Registration
2. Filing Returns
3. TDS
4. Annual Return
5. Assessment
6. Assessment order
7. Appeal