A PRESENTATION ON

TAXATION SYSTEM IN INDIA

BY PRAJAKTA PATILPGDM1- 1407

What is Tax?

Indian Taxation System is Based on 3 Tier System

1) CENTRAL GOVT2) STATE GOVT 3) LOCAL GOVT

TYPES OF TAX

DIRECT

INCOMETAX (House,PropertyBusiness,Profession,Salaries,Capital Gains) CORPORATION TAX(1961) PROPERTY TAX GIFT TAX

INDIRECT

CUSTOMS DUTY SERVICE TAX EXCISE GOODS AND SERVICE TAX CENTRAL SALES TAX SECURITIES TRANSACTION TAX VALUE ADDED TAX

Taxes taken by-CENTRAL GOVERNMENT

CUSTOMS(1962)

CORPORATION TAX

SALES ( Purchases of commodities within the country)

SECURITIES TRANSACTION TAX(1st

october,2004)

ANTI DUMPING DUTY

EXCISE(1944)

Taxes taken by-STATE GOVERNMENT

STAMP DUTY

STATE EXCISE

VAT(220+) Items

LAND REVENUE

PROFESSION TAX

ENTERTAINMENTS, AMUSEMENTS

STATUS INDIAN INCOME FOREIGN INCOME

RESIDENT AND ORDINARY RESIDENT

TAXABLE TAXABLE

RESIDENT BUT NOT ORDINARY RESIDENT

TAXABLE NON TAXABLE

NON RESIDENT TAXABLE NON TAXABLE

TAXES BASED ON THE CRITERIA OF PEOPLE

1) i)Stays in INDIA for 182 days in a yearii)60 Days during the year and 365 days during the preceeding 4 years

2) NOT PRESENT IN India for 730 days during the 7 yearsor non resident in 9 out of 10 years

BASIC EXCISE DUTY: This is the duty charged under section 3 of the Central Excises and Salt Act,1944 on all excisable goods other than salt which are produced or manufactured in India at the rates set forth in the schedule to the Central Excise tariff Act,1985.

ADDITIONAL DUTY OF EXCISE: Section 3 of the Additional duties of Excise (goods of special importance) Act, 1957 authorizes the levy and collection in respect of the goods described in the Schedule to this Act. This is levied in lieu of sales Tax and shared between Central and State Governments. These are levied under different enactments like medicinal and toilet preparations, sugar etc. and other industries development etc.

SPECIAL EXCISE DUTY: As per the Section 37 of the Finance Act,1978 Special excise Duty was attracted on all excisable goods on which there is a levy of Basic excise Duty under the Central Excises and Salt Act,1944.Since then each year the relevant provisions of the Finance Act specifies that the Special Excise Duty shall be or shall not be levied and collected during the relevant financial year.

EXCISE DUTY

OTHER TAXESPROFESSIONAL

Levied by Municipal Corp.DIVIDEND DISTRIBUTION

Levied on companies by Indian Govt i.e., 15%MUNICIPAL TAX

Levied By Municipal Corp on PropertyENTERTAINMENT TAX

Levied by State Govt on movie tickets,major commercial exhibitions, DTH Service,Cable Service

STAMP DUTY,REGISTRATION FEES,TRANSFER TAXProperty Tax

EDUCATION CESSExcise Duty,Income Tax and Service Tax

SURCHARGEExtra Charges

WEALTH TAX1% on Net wealth exceeding 30 lacs

TOLL TAXInfrastructure(bridge,roads)

The total revenue realization from Direct and Indirect Taxes increased from ` 1881.19 billion in 2000-01 to ` 6076.45 billion in 2008-09. The percentage share of revenue realization from direct taxes to the total revenue realization increased from 36.3% in 2000-01to 55.7% in 2008-09, whereas, the percentage share of revenue realization from indirect taxes declined from 63.7% in 2000-01 to 44.3% in 2008-09.

Revenue collection from direct taxes increased from ` 683.05 billion in 2000-01 to ` 3382.12 billion in 2008- 09. The percentage share of revenue realization from corporation tax to the total revenue realization from direct taxes increased from 52.3% in 2000-01to 63.2% in 2008-09, whereas, the percentage share of revenue rea from income tax decreased from 46.5% in 2000-01 to 36.7% in 2008-09.

REVENUE COLLECTION

JOKE ON TAX1) What are you doing?Ans-Business:- Pay Professional Tax2)What are you doing in Business?Ans-Selling the goods:- pay Sales Tax3) From where are you getting Goods?Ans-From other state Abroad:- Pay Central Sales Tax, Custom Duty, Octroi4) What are you getting in Selling Goods?Ans-Profit-Pay Income Tax5)Where do you manufacture Goods?Ans-Factory- Pay Excise Duty6) Do you have staff?Ans-Pay staff Professional tax7)Have you taken or given any service?Ans-Yes, Pay Service Tax8) How come you got such abig amount?Ans- Gift on Birthday: Pay Gift Tax9) To reduce tension foor entertainment where are yoi going?Ans-Cinema or Resort:Pay Entertainment tax10) Have you purchased House?Ans- Pay Stamp Duty Registration Fee11) Delayed anytime paying any Tax?Ans-Yes-Pay Intrest Penalty12) INDIAN: Can I die now?Ans-Wait- we are about to launch the death Tax

THANK YOU....