Business & Indirect Taxation &

Their Related Tax Provisions

GROUP - 9

72. PRANAV HIRAY

74. GUNDEEP KOUR

66. ANUSHKA KHANDAGALE

Presentation Title 65. ROSHAN 1

I
Indirect tax is something that a manufacturer pays
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to
N
the Government of his country.
T
R
O Indirect tax is generally imposed on suppliers or
manufacturers who pass it on to the final consumer.
D
U
C There are many indirect taxes applied by government
T of India.
I
O Taxes are implied on manufacture, sale, import and
N even on purchase of goods and services.
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 DIFFERENCE BETWEEN DIRECT AND INDIRECT TAXES
DIRECT TAXES
1. Direct taxes contributed 25% to 35% of
total revenue.
2. They do not have any impact on costs and
prices of goods.
3. Direct taxes confirm to the principle of
equity.
4. Direct tax is levied on who possess
property or earn income.
5. Incidence of tax is directly on tax payer.
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INDIRECT TAXES
1. Indirect taxes contributed 65% to 75% of
total revenue.
2. 2.Increase in rates of indirect taxes leads to
increase in costs and prices of goods.
3. 3.Indirect taxes do not discriminate between
rich and poor. The levy is against the
principle of equity.
4. 4.It is levied on persons who spend their
income expenditure. or incurred.
5. Incidence of tax is on traders manufacturer,
but shifted to buyers of goods or services
later on.
  STRUCTURE OF TAXES

Presentation Title 4
  CENTRAL GOVERNMENT

 Custom duty: Custom duty is levied on the goods which are imported and
exported. This is levied in order to prevent illegal import and export of goods to
and from India.

 Excise duty: Excise duty is levied on the goods which are produced in the
country. Firstly the manufacturer has to pay the tax to government and then he
charges that amount from customers.

 Services tax: It is a tax on the services rendered by a business man or by

Professional persons.

 Sales tax: Sales tax is a tax on the sale of goods sales tax is payable by the seller,
which is recovered from the purchaser
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  STATE GOVERNMENT

o Entertainment Tax: State government levy entertainment tax on cinemas,

trade fairs, exhibitions etc. Entertainment tax is cinema is very popular.

o V.A.T: VAT(Value Added Tax) is a tax on final consumption of goods and

services. VAT will be levied on the value added to goods on each stage.

o State Excise Duty: It is levied on Alcoholic consumptions, marijuana, opium.

Revenue from this duty is the major source of revenue to State Government.

Presentation Title 6
  Tax Levied By Local Government

A local tax is an assessment by a state or municipality to fund public services ranging from education to garbage
collection and sewer maintenance. Local taxes come in many forms, from property taxes and payroll taxes to
sales taxes and licensing fees. 

TYPES OF LOCAL TAXES

PROPERTY WATER SEWERAGE

TAX TAX TAX

Presentation Title 7
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YOU !