Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Dear Concern, i need to know indirect taxation like tds,service tax ,sales tax,excise duty, these information brief articuls kindly send as a same.. Regards, Sharan
Hi,
Please see if these answers your questions;

1. TDS
As per the applicable provisions of the Income Tax Act' 1961, though regular assessments are made in respect of any income in later assessment year, but the assessee has to pay the tax in the following two ways:

Tax Deduction at Source/ Tax Collection at Source:
In case of certain income, tax is deducted at source by the payer at the prescribed rates either at the point of accrual or payment of such income. On same lines tax is collected at source by the seller from buyer/ licensee/ lessee at the time of debiting the amount to the account of such buyer/ licensee/ lessee or the receipt of the payment whichever is earlier.

Advance Tax
The assessee in certain cases is under an obligation to make payment of advance tax , in certain installments.

Such taxes deducted/ collected or paid as advance tax in the previous year itself are known as prepaid taxes and are consequently deductible from the total tax due from the assessee.

A Tax Deduction or a Tax-Deductible expense has the primary function to reduce ones taxable income. Since taxes constitute a part of the taxable income earned by individuals, tax deductions can reduce the taxable income and offer a certain amount of tax relief.

With this, their taxable income falls to a great extent and the pains of paying tax at a time on total income earned is evenly distributed over the relevant previous year in the same manner as if one is paying a form of advance tax to the Govt.
2.SERVICE TAX
Service tax is tax of 21st Century. In India share of GDP in 2008-09 was - Agriculture - 19.78%, Industry - 24.49%, Services - 55.73% (Source - Economic Survey 2008-09 - Quick estimates). Service tax was imposed on three services w.e.f. 1-7-1994 and its scope is being widened every year.

HIGHLIGHTS OF THE SERVICE TAX

Service tax is imposed under Finance Act, 1994 as amended from time to time. There is no Service Tax Act.


Service tax is payable @ 10% plus education cess of 2%, plus SAH education cess of 1% (total 10.30%) w.e.f. 24TH February 2009 [Section 66]. Service tax rate was 12.36 from 11-5-2007 to 23-02-2009, before hat it was 12.24% from 18-4-2006 to 10-5-2007. Even before that , the rate was 10.2% from 10-9-2004 to 17-4-2006.


Service tax is payable on taxable services as defined in various clauses of section 65(105) of Finance Act, 1994. Presently, about 109 services are taxable.


Service tax is payable on gross amount charged for taxable service provided or to be provided [Section 67]. If consideration is partly not in money, valuation is required to be done as per Valuation Rules. Tax is payable when advance is received.


Small service providers up to Ten lakhs are exempt. Export of service is exempt from service tax under Notification No. 6/2005-ST dated 1-3-2005. Services provided in J&K are not taxable [section 64(1)]


CENVAT credit is available of inputs, input services and capital goods used for providing taxable output services.


In some cases, receiver of service is liable to pay service tax. This is termed as ‘reverse charge’ [Section 68(2)].


Every provider of taxable service should apply for registration in form ST-1 within 30 days from date of levy (in case of new services) and date of commencement of business of providing taxable service In case of existing services [Rule 4(1)]. Registration will be deemed to have been granted if not received within seven days [Rule 4(5)].


Assessee providing service from various premises can have centralised registration [Rule 4(2)]


Service provider is required to prepare invoice within 14 days, even in respect of advance received [Rule 4A].


Tax should be paid by 5th of following month (6th in case of e-payment). If assessee is individual or proprietary or partnership firm, tax is payable on quarterly basis. This facility is not available to HUF. In March, tax is payable by 31st March [Rule 6].


If payment of tax is delayed, interest is payable @ 13% [Section 75](It cannot be reduced or waived)


Assessee has to submit half yearly return in form ST-3 in triplicate within 25 days of close of half year [Rule 7]


Penalty is payable for non-registration, late payment of tax, non-submission of returns etc. Mandatory penalty is payable for suppression of facts, willful misstatement, fraud or collusion [sections 76 to 80]


The tax is administered by excise department. Adjudication order is issued by excise officer.


First appeal lies with Commissioner (Appeals) [section 85] and second appeal with Appellate Tribunal (Customs, Excise and Service Tax Appellate Tribunal) [Section 86]. Further appeal lies with High Court and Supreme Court.
3. VAT (IN LIEU OF SALES TAX)
VAT is a system of indirect taxation, which has been introduced in lieu of sales tax. It is the tax paid by the producers, manufacturers, retailers or any other dealer who add value to the goods and that is ultimately passed on to the consumer. VAT has been introduced in India to ensure a fair and uniform system of taxation. It is an efficient, transparent, revenue-neutral, globally acceptable and easy to administer taxation system. It benefits the common man (consumer), businessman and the Government.

VAT enhances competitiveness by removing the cascading effect of taxes on goods and makes the levy of tax simple and self-regulatory, ensuring flexibility to generate large revenues.

The cascading effect is brought about by the existing structure of taxation where inputs are taxed before a commodity is produced and the output is taxed after it is produced. This causes an unfair double-taxation. However, in VAT, a set-off is given for input tax (tax paid on purchases). This results in the overall tax burden being rationalized and a fall in prices of goods.

VAT makes the tax structure simple, hassle-free and export-oriented. The integration of VAT with Tally will help you in the smooth functioning of your business and eliminate the complications that might otherwise arise in VAT.

4.EXCISE TAX
Central Excise is an indirect tax; which is levied and collected on the goods/commodities manufactured in India. Generally, manufacturer of commodities is responsible to pay duty to the Government. This indirect taxation is administered through an enactment of the Central Government viz., The Central Excise Act, 1944 and other connected rules- which provide for levy, collection and connected procedures. The rates at which the excise duty is to be collected are stipulated in the Central Excise Tariff Act, 1985. It is mandatory to pay Central Excise duty payable on the goods manufactured, unless exempted e.g., duty is not payable on the goods exported out of India. Further various other exemptions are also notified by the Government from the payment of duty by the manufacturers.

This act is applied to whole of India except Jammu & Kashmir.

Central Excise Law is a combined study of:

Central Excise Act (CEA), 1944;

Central Excise Tariff Act (CETA), 1985;

Central Excise Rules, 2002; and

CENVAT Credit Rules, 2004

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.






About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service



All rights reserved @ 2020 Cite.Co™