It is a compulsory charge levied by the govt. irrespective of the exact amount of service rendered to the individuals , net imposed as a penalty for any offense.
Indirect Tax:
Sales tax -> seller and buyer
Excise duties (tax for goods manufactured)
Customs duty ( import )
Service tax
Entry tax -> imposed on goods when the goods are entered into the boundary of another state.
Direct tax-> exclusive interrogative only by the central govt.
Income tax
Wealth tax
Gift tax
Octroi: levied directly on the person who earn/possess the properties or income
Gift tax: tax levied on the one who exempt the limit
Heads of income chargeable to
- salaries (tax deducted at source)
- income gained from income/profession
- capital gains (gain acquired from sale of fixed assets)
- including from house property (rent)
- including from other sources (lotter, gambling, etc)
Capital gain = sale price – cost price
Income tax act 1961 (legislation that governs the direct taxation)
Tax v/s Duty
Tax
Is levied on a transaction of a person on his income
Duty
Is levied on the goods imported/produced
Apex body that controls the indirect tax is CBDT – central board for direct taxes
Apex body that controls the indirect tax system is CBED – central board of excise and customs
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