SlideShare ist ein Scribd-Unternehmen logo
1 von 28
INDIRECT TAXES
Difference between direct and indirect taxes 
Point of 
difference 
DIRECT TAX INDIRECT TAX 
Incidence & 
Impact 
A tax is said to be direct ‘when 
impact and Incidence of a tax are 
on one and same person. 
If impact of tax is on one 
person and incidence on the 
another, the tax is called 
‘indirect’ 
Burden 
Direct tax is imposed on the 
individual organisation and 
burden of tax cannot be shifted 
to others. 
Indirect tax is imposed on 
commodities and allows the 
tax burden to shift. 
Viability of 
payment 
Direct taxes are lesser burden 
then indirect taxes to people as 
direct taxes are based income 
earning ability of people. 
Indirect taxes are borne by the 
consumers of commodities 
and services irrespective of 
financial ability as the MRP 
includes all taxes. 
Administra 
tive 
viability 
The administrative cost of 
collecting direct taxes is more 
and improper administration may 
result in tax evasion. 
Cost of collecting indirect are 
taxes is very less as indirect 
taxes are wrapped up in prices 
of goods and services and 
cannot be evaded 
Collected from someone or
Classification of TAXES 
•DIRECT TAX 
• INCOME TAX 
• CORPORATION TAX 
• PROPERTY TAX 
• INHERITANCE TAX 
• GIFT TAX 
• WEALTH TAX 
•INDIRECT TAXES 
• CENTRAL EXCISE 
• CENTRAL SALES TAX 
• CUSTOMS DUTY 
• SERVICE TAX 
• OCTROI ETC. 
• VALUE ADDED TAX (VAT) 
• SECURITIES TRANSACTION TAX (STT)
Levy of taxes 
CENTRAL GOVERNMENT 
• INCOME TAXES(EXCEPT ON AGRICULTURE) 
• CUSTOMS DUTY 
• EXCISE DUTY (EXCEPT ON LIQUOR) 
STATE GOVERNMENT 
• TAX ON AGRICULTURE 
• EXCISE ON LIQUOR 
• BOTH CST AND LST 
LOCAL AUTORITIES 
• OCTROI 
• MUNICIPAL TAXES 
• TAXES ON HOUSE PROPERTY
Concept of Central Sales Tax (CST) 
• CST is an indirect tax as the burden falls on consumer 
• CST act came into force on 1.7.1957 
• This act applies to whole of India, including J&K 
• It is levied by Central Government on TAXABLE TURNOVER of Inter-state 
sale of goods made by registered dealer in ordinary course of business. 
• It is payable in the state in which movement of Goods commences. 
• It is assessed, collected and administered by State Government.
CENTRAL SALES TAX ACT-1956 
CONDITIONS 
1. There should be A dealer 
2. Should be A registered dealer 
3. He must carry on any business 
4. Sale should take place 
5. Sale may be to A regd or unregd buyer 
6. The sale should be of goods. 
7. The sale can be of also declared goods (goods of specific importance) 
8. The sale should take place in course of inter state 
9. The sales should not be within the same state. 
10. The sale should not be outside India
DEFINITIONS 
• DEALER U/S 2(b). 
He is A person one who is involved in the activities of buying, selling, distributing the goods 
directly or indirectly either for cash or for deferred payment ,for commission ,brokerage etc. 
DEALER INCLUDES 
1. Local authorities ,co-operative societies, A company, HUF, association of persons, firms.. 
2. Suppliers, broker, del creder, commissioner, etc. 
3. An auctioneer(govt, agent, etc) 
REGISTERED DEALER SEC 7 
• A person should register himself u/s 7 
• The registration may be: 
• VOLUNTARY REGISTRATION OR 
• COMPULSORY REGISTRATION
SALE -2(G) 
SALE INCLUDES 
• A transfer of goods for money 
• Transfer of goods for money’s worth 
• Transfer of goods on an agreement to pay on deferred system 
• Hire purchase system and installment system. 
POINTS TO BE REMEMBERED 
• Sale may be to a registered buyer or unregistered buyer. 
• Element of price is essential. 
• Free supply is not sale. 
• Quantity discount is not a sale. 
• Mortgage is not a sale. 
• Depot transfer is not a sale.
GOODS-2(d) 
• Goods means any article, thing, commodity, and which is movable 
,however goods 
• DOES NOT INCLUDE: Newspapers, actionable Claims, stocks, Shares, 
Securities. 
• DECLARED GOODS –SEC2(C) 
• Declared goods are goods of special importance.If declared goods are sold 
there are certain benefits which can be obtained by the dealer, which is not 
available for the ordinary goods. 
• Cereals ,Pulses, Coal Including Coke But Not Charcoal, Cotton Waste , Hand 
Made Garments, tobacco, Raw Tobacco, Cheroots Of Tobacco ,Jute, Oil Seeds, 
Cotton In Unmanufactured Form ,Crude Oil,sugar, khandsare Sugar, Aviation 
Turbine Fuel, refused Tobacco, Cigars ,Hides And Skins, Woven Fabrics Of 
Wool.
INTER STATE SALE-SEC 3 
• Once the goods are taken out of dealers place then final destination 
should be taken into consideration and not the route through which 
goods are transferred. 
BASIS OF CHARGE 
• When all these conditions are satisfied then CST will be levied 
AT SPECIFIED RATE ON TAXABLETURNOVER WHICH WILL BE BASED ON 
SALES AND NOT ON PROFITS.
Rates of CST 
• Form C 
The sales tax on inter-state sale is 4% or the applicable sales tax rate for sale within the 
State whichever is lower if the sale is to a dealer registered under CST. 
• Form D 
Sale to government is taxable @ 4% or applicable sales tax rate for sale within the State 
whichever is lower. 
• Form E1 
This form is issued by the dealer who makes the first inter-state sale during movement of 
goods from one State to another. 
• Form E2 
This form is issued by the second or the subsequent seller when the goods move from one 
state to another in a series of inter-state sales by transfer of documents of title. 
• Form F 
This form is issued when goods are dispatched to another state as a consignment or to the 
branch of a dealer in another State. The CST is not payable if there is only inter-state stock 
transfer and there is no sale. 
• Form H 
This form is issued by an exporter for purchase of goods. The purchase of goods is for an 
export order or in pursuance of an export order. 
• Form I 
This form is issued by a dealer located in a Special Economic Zone (SEZ). No CST is levied 
when sales is made to a dealer located in SEZ.
Particulars Amount 
Price or value of Goods Sold XXX 
Less: Goods rejected/ Returns XX 
Net Sales XXX 
Less: 
 Discounts 
 Insurance charges at request of Buyer 
 Transportation and Freight charges 
 Installation charges 
Balance XXX 
Add: 
Packing charges 
Central Excise Duty 
Insurance charges (borne by seller) 
Weighing charges 
Aggregate Sale Price XXX 
Less: CST (Aggregation of Sale price x Rate of tax / 100+Rate of Tax XX 
Taxable turn Over XXX
Value Added Tax 
• The value added tax was introduced as an indirect tax into the Indian 
taxation system from 1 April 2005. 
• The existing General Sales Tax Laws were replaced with new Value 
Added Tax Acts . 
• VAT is a tax, which is charged on the “Increase in Value” of good and 
services at each stage of production and circulation. 
• It is charged by registered VAT businesses
Rate of TAX (VAT) 
• Rate of Tax: 
Schedule ‘A’ – Essential Commodities (Tax free)- Nil 
Schedule ‘B’ – Gold, Silver, Precious Stones, Pearls etc. - 1% 
Schedule ‘C' – Declared Goods and other specified goods - 4% Other 
goods w.e.f. 1/5/10 - 5% 
Schedule ‘D’ – Foreign Liquor, Country Liquor, Motor Spirits, etc. - At 
specified rates 
Schedule ‘E’ – All other goods (not covered by A to D) - 12.5%
Calculation of VAT 
Calculation of VAT (tax @10%) Amount 
Purchase price 200 
Tax paid during purchase (Rs. 20 [input tax]—10% on 200) 
Selling price 250 
Tax collected on resale (Rs. 25[output tax]—10% on 250) 
VAT payable (Output tax – Input Tax) Rs. 5 (25-20) 
Total tax collected by the Government 
 At the time of purchase by the dealer----Rs. 20 
 At the time of resale by the dealer---------Rs. 05 
 Total---------------------------------------------------- 
Rs. 25
CENTRAL EXCISE ACT 
• The law of Central Excise duties is governed by the 
following : 
• Central Excise Act 1994 
• Central Excise tariff Act 1985 
• Central Excise Rules ,1944
• Central Excise Act ,1994 
• This is the basic law related to the levy and collection of duties of 
central excise. However this Act does not contain the rate at which 
duties are imposed. 
• Central Excise Tariff Act ,1985 
• This Act classifies various goods on which central excise duties are 
levied and prescribes the rates at which the duty is payable. 
• Central Excise Rules ,1944 
• All manufacturers of excisable goods are required to register under 
these rules .The registration is valid as long as production activity 
continues and no renewals are necessary
Taxable event for central excise duty 
Taxable event for charge of duty of central excise is the manufacturer or 
production of goods in India. 
In this context ,the Supreme Court has observed: 
 Excise duty is not directly on the goods, but manufactured thereof. Though both 
excise duty and sales duty levied with reference to goods, the two are very different 
imposts. 
 In one case, the imposition is on the act of manufactured or production, while in the 
other it is on the act of sale.
Liability for central excise 
For condition must be present for the 
charge of central excise duty: 
1. 1.The duty is on goods 
2. 2.The goods must be excisable 
3. 3 .The goods must be manufactured or produced 
4. 4.Such manufacture or production must be take place in India
1.GOODS 
For an item to be considered goods for the purpose of the levy of 
central excise duty ,it must satisfy two requirements: 
Movability 
Goods must be movable. Duty cannot be levied on immovable property 
.Central excise duty cannot imposed on plant and machinery 
Marketability 
Goods must be marketable .The goods must be known in the market and must 
be capable of being bought or sold 
2.Excisable goods 
 For the liability of duty of central excise to arise, the item in question 
should not only be goods it should also be excisable goods. 
 A goods become excisable if and only if it is mentioned in the Central 
Excise Tariff Act 1985
3.Goods must be manufactured or produced 
The third condition that must be satisfied for becoming liable to pay duties of 
central excise is that the goods must be manufactured or produced. 
4. Manufactured or production must in India 
 Finally ,for the liability to pay central excise duty to arise the goods must 
be manufactured or produced in India. 
5. Who is liable to pay central excise duties? 
 The central excise duty is a tax on manufacture or production of goods. 
Hence, the liability to pay excise duty lies on manufacturer or the producer
Basis for valuation of goods 
1. Specific duty 
2. Tariff duty 
3. Maximum retail price 
4. Ad -valorem basis
Basis for valuation of goods 
The duty of central excise is charged on four bases: 
• 1.Specific duty 
• 2.Tariff duty 
• 3.Maximum retail price 
• 4.ad -valorem basis
1.Specific duty 
• It is the duty payable on the basis of some physical feature of the 
product unit like weight, length, volume, thickness, etc. 
• Some of the goods on which duty is charged on the basis are as follows 
item Basis 
Cigarette Length 
Matches Box of 100 
Sugar Quintal 
Cement Per tonne 
2.Tariff value 
1. The government has the power to declare a value on the basis of 
which duty of central excise will be charged. 
2. When the government declare the value, the duty is charged on the 
value and the actual value of the goods is ignored.
3.MRP –based valuation 
Some manufactures had started the practice of central excise by resorting to 
some questionable practices. In order to check these malpractices, a new basis 
of valuation was introduced, that is, the maximum retail price(MRP)-based 
valuation. 
E.g.: television sets, DVD players, Cosmetics, Toilet preparations and chocolates 
4.Ad Valorem duty 
The first three bases of valuation are applied for only a few goods. In a large 
majority of cases the duty of central excise is payable on the basis of the value of 
the goods, called the assessable value.
Meaning of customs duty 
1. Duty or tax, which is levied by central govt. 
2. Collected from the importer or exporter of goods. 
3. Duties are usually “ad –valorem rates” 
4. “Ad –valorem rates” 
5. Duty as a percentage of the value of goods
Scope and coverage of customs 
law 
1. Basic act for levy and collection of customs duty. 
2. Contain various provisions relating to imports and exports of 
goods and merchandize as well as baggage of persons. 
3. The main purpose of customs act, 1962. 
4. Prevention of illegal imports and exports. 
5. The act extends to the whole of the India. 
6. Two acts. 
1. The customs act, 1962 
2. The customs tariff act, 1975
Objects of customs duty 
• The customs duty is levied, primarily, for the following 
purpose: 
1. To raise revenue. 
2. To regulate imports of foreign goods into India. 
3. To conserve foreign exchange, regulate supply of goods 
into domestic market. 
4. To provide protection to the domestic industry from foreign 
competition by restricting import of selected goods and 
services, import licensing, import quotas, and outright 
import ban.

Weitere ähnliche Inhalte

Was ist angesagt?

Direct and indirect taxes
Direct and indirect taxesDirect and indirect taxes
Direct and indirect taxesSonamrehmani
 
GST COUNCIL & Functions of the GST Council
GST COUNCIL & Functions of the GST CouncilGST COUNCIL & Functions of the GST Council
GST COUNCIL & Functions of the GST CouncilSundar B N
 
Gst input tax credit ppt
Gst input tax credit pptGst input tax credit ppt
Gst input tax credit pptJibin Varghese
 
Returns Under GST
Returns Under GSTReturns Under GST
Returns Under GSTTeam Asija
 
Income from business or profession
Income from business or professionIncome from business or profession
Income from business or professionParminder Kaur
 
DTAA - Double Taxation Avoidance Agreement
DTAA - Double Taxation Avoidance AgreementDTAA - Double Taxation Avoidance Agreement
DTAA - Double Taxation Avoidance AgreementAkhilesh shukla
 
Various Returns of income
Various Returns of incomeVarious Returns of income
Various Returns of incomeRAJESH JAIN
 
Offences, penalties and prosecution under gst
Offences, penalties and prosecution under gst Offences, penalties and prosecution under gst
Offences, penalties and prosecution under gst DVSResearchFoundatio
 
Incidence of tax
Incidence of taxIncidence of tax
Incidence of taxrk16588
 
Minimum Alternate Tax
Minimum Alternate Tax Minimum Alternate Tax
Minimum Alternate Tax Sundar B N
 
Goods And Service Tax
Goods And Service TaxGoods And Service Tax
Goods And Service TaxDaksh Goyal
 
Offences, prosecutions and penalties under customs
Offences, prosecutions and penalties under customs Offences, prosecutions and penalties under customs
Offences, prosecutions and penalties under customs DVSResearchFoundatio
 

Was ist angesagt? (20)

Direct and indirect taxes
Direct and indirect taxesDirect and indirect taxes
Direct and indirect taxes
 
GST COUNCIL & Functions of the GST Council
GST COUNCIL & Functions of the GST CouncilGST COUNCIL & Functions of the GST Council
GST COUNCIL & Functions of the GST Council
 
Input Tax Credit under GST
Input Tax Credit under GSTInput Tax Credit under GST
Input Tax Credit under GST
 
Taxation in india
Taxation in indiaTaxation in india
Taxation in india
 
Gst input tax credit ppt
Gst input tax credit pptGst input tax credit ppt
Gst input tax credit ppt
 
Returns Under GST
Returns Under GSTReturns Under GST
Returns Under GST
 
Income from business or profession
Income from business or professionIncome from business or profession
Income from business or profession
 
Income tax act 1961
Income tax act 1961Income tax act 1961
Income tax act 1961
 
Fundamentals of Income Tax
Fundamentals of Income TaxFundamentals of Income Tax
Fundamentals of Income Tax
 
DTAA - Double Taxation Avoidance Agreement
DTAA - Double Taxation Avoidance AgreementDTAA - Double Taxation Avoidance Agreement
DTAA - Double Taxation Avoidance Agreement
 
Registration under GST Law
Registration under GST LawRegistration under GST Law
Registration under GST Law
 
Various Returns of income
Various Returns of incomeVarious Returns of income
Various Returns of income
 
Offences, penalties and prosecution under gst
Offences, penalties and prosecution under gst Offences, penalties and prosecution under gst
Offences, penalties and prosecution under gst
 
Incidence of tax
Incidence of taxIncidence of tax
Incidence of tax
 
Minimum Alternate Tax
Minimum Alternate Tax Minimum Alternate Tax
Minimum Alternate Tax
 
Direct Tax
Direct TaxDirect Tax
Direct Tax
 
Goods And Service Tax
Goods And Service TaxGoods And Service Tax
Goods And Service Tax
 
GST Model
GST ModelGST Model
GST Model
 
Offences, prosecutions and penalties under customs
Offences, prosecutions and penalties under customs Offences, prosecutions and penalties under customs
Offences, prosecutions and penalties under customs
 
customs duty 1966
customs duty 1966customs duty 1966
customs duty 1966
 

Andere mochten auch

Legal Aspects Of Business Unit - 4 PPTs
Legal Aspects Of Business Unit - 4 PPTsLegal Aspects Of Business Unit - 4 PPTs
Legal Aspects Of Business Unit - 4 PPTsMohan Raj
 
TAX PLANNING WITH REFERENCE TO FINANCIAL MANAGEMENT
TAX PLANNING WITH REFERENCE TO FINANCIAL MANAGEMENTTAX PLANNING WITH REFERENCE TO FINANCIAL MANAGEMENT
TAX PLANNING WITH REFERENCE TO FINANCIAL MANAGEMENTArup Bordoloi
 
Corporate tax planning
Corporate tax planningCorporate tax planning
Corporate tax planningrakya01
 
Value Added Tax (India) Final
Value Added Tax (India) FinalValue Added Tax (India) Final
Value Added Tax (India) FinalAshish Nangla
 
training and development at infosys
training and development at infosystraining and development at infosys
training and development at infosysSwati Luthra
 
Corporate tax planning
Corporate tax planning Corporate tax planning
Corporate tax planning Anuj Bhatia
 
Understanding Goods & Services Tax (GST)
Understanding Goods & Services Tax (GST)Understanding Goods & Services Tax (GST)
Understanding Goods & Services Tax (GST)Prof. Simply Simple
 
Taxation 101 basic rules and principles in philippine taxation by jr lopez go...
Taxation 101 basic rules and principles in philippine taxation by jr lopez go...Taxation 101 basic rules and principles in philippine taxation by jr lopez go...
Taxation 101 basic rules and principles in philippine taxation by jr lopez go...JR Lopez Gonzales
 

Andere mochten auch (20)

Tax structure in India
Tax structure in IndiaTax structure in India
Tax structure in India
 
Excise Duty
Excise DutyExcise Duty
Excise Duty
 
Central sales tax
Central sales taxCentral sales tax
Central sales tax
 
Air india final
Air india finalAir india final
Air india final
 
google working
google workinggoogle working
google working
 
Legal Aspects Of Business Unit - 4 PPTs
Legal Aspects Of Business Unit - 4 PPTsLegal Aspects Of Business Unit - 4 PPTs
Legal Aspects Of Business Unit - 4 PPTs
 
Tax Planning
Tax PlanningTax Planning
Tax Planning
 
Central Sales Tax
Central Sales Tax Central Sales Tax
Central Sales Tax
 
TAX PLANNING WITH REFERENCE TO FINANCIAL MANAGEMENT
TAX PLANNING WITH REFERENCE TO FINANCIAL MANAGEMENTTAX PLANNING WITH REFERENCE TO FINANCIAL MANAGEMENT
TAX PLANNING WITH REFERENCE TO FINANCIAL MANAGEMENT
 
Tax planning
Tax planningTax planning
Tax planning
 
Corporate tax planning
Corporate tax planningCorporate tax planning
Corporate tax planning
 
Value added tax
Value added tax     Value added tax
Value added tax
 
Value Added Tax (India) Final
Value Added Tax (India) FinalValue Added Tax (India) Final
Value Added Tax (India) Final
 
Corporate tax planning
Corporate tax planningCorporate tax planning
Corporate tax planning
 
training and development at infosys
training and development at infosystraining and development at infosys
training and development at infosys
 
Corporate tax planning
Corporate tax planning Corporate tax planning
Corporate tax planning
 
Understanding Goods & Services Tax (GST)
Understanding Goods & Services Tax (GST)Understanding Goods & Services Tax (GST)
Understanding Goods & Services Tax (GST)
 
Types of Taxes
Types of TaxesTypes of Taxes
Types of Taxes
 
Taxation 101 basic rules and principles in philippine taxation by jr lopez go...
Taxation 101 basic rules and principles in philippine taxation by jr lopez go...Taxation 101 basic rules and principles in philippine taxation by jr lopez go...
Taxation 101 basic rules and principles in philippine taxation by jr lopez go...
 
Gst ppt
Gst pptGst ppt
Gst ppt
 

Ähnlich wie Indirect taxes

Business Environment- Unit III- UPTU
Business Environment- Unit III- UPTUBusiness Environment- Unit III- UPTU
Business Environment- Unit III- UPTULamay Sabir
 
gstnew material.ppt
gstnew material.pptgstnew material.ppt
gstnew material.pptyazirp
 
Basic principle of sound tax system
Basic principle of sound tax systemBasic principle of sound tax system
Basic principle of sound tax systemnobitapandak
 
GST AND INDIRECT TAX -Final.pdf
GST AND INDIRECT TAX -Final.pdfGST AND INDIRECT TAX -Final.pdf
GST AND INDIRECT TAX -Final.pdfPareshKisku1
 
Sales tax and customs duty
Sales tax and customs dutySales tax and customs duty
Sales tax and customs dutyAdakho Kadete
 
GST - The Game Changer
GST - The Game ChangerGST - The Game Changer
GST - The Game ChangerSundeep Gupta
 
indian tax system
indian tax systemindian tax system
indian tax systemBijon Guha
 
Cin india-localization sd-workshop
Cin india-localization sd-workshopCin india-localization sd-workshop
Cin india-localization sd-workshopsristick
 
Value Added Tax (VAT) in UAE
Value Added Tax (VAT) in UAEValue Added Tax (VAT) in UAE
Value Added Tax (VAT) in UAEANAND TP
 
Vat And Its Applications
Vat And Its ApplicationsVat And Its Applications
Vat And Its Applicationssamarth_tandon
 
VAT- Value Addition Tax
VAT- Value Addition TaxVAT- Value Addition Tax
VAT- Value Addition TaxRAJESH JAIN
 
Taxation Solutions to Sqiud Loads.pptx
Taxation Solutions to Sqiud Loads.pptxTaxation Solutions to Sqiud Loads.pptx
Taxation Solutions to Sqiud Loads.pptxBitCoin28
 

Ähnlich wie Indirect taxes (20)

Business Environment- Unit III- UPTU
Business Environment- Unit III- UPTUBusiness Environment- Unit III- UPTU
Business Environment- Unit III- UPTU
 
GST - Unit II CST.pptx
GST - Unit II CST.pptxGST - Unit II CST.pptx
GST - Unit II CST.pptx
 
India local tax
India local taxIndia local tax
India local tax
 
WB VAT ACT, 2003
WB VAT ACT, 2003WB VAT ACT, 2003
WB VAT ACT, 2003
 
gstnew material.ppt
gstnew material.pptgstnew material.ppt
gstnew material.ppt
 
Basic principle of sound tax system
Basic principle of sound tax systemBasic principle of sound tax system
Basic principle of sound tax system
 
GST AND INDIRECT TAX -Final.pdf
GST AND INDIRECT TAX -Final.pdfGST AND INDIRECT TAX -Final.pdf
GST AND INDIRECT TAX -Final.pdf
 
Sales tax and customs duty
Sales tax and customs dutySales tax and customs duty
Sales tax and customs duty
 
GST - The Game Changer
GST - The Game ChangerGST - The Game Changer
GST - The Game Changer
 
Vat notes june 13
Vat notes june 13Vat notes june 13
Vat notes june 13
 
central excise andVAT
central excise andVATcentral excise andVAT
central excise andVAT
 
indian tax system
indian tax systemindian tax system
indian tax system
 
Cin india-localization sd-workshop
Cin india-localization sd-workshopCin india-localization sd-workshop
Cin india-localization sd-workshop
 
Indirect taxes
Indirect taxesIndirect taxes
Indirect taxes
 
Value Added Tax (VAT) in UAE
Value Added Tax (VAT) in UAEValue Added Tax (VAT) in UAE
Value Added Tax (VAT) in UAE
 
GST.pptx
GST.pptxGST.pptx
GST.pptx
 
DVAT
DVATDVAT
DVAT
 
Vat And Its Applications
Vat And Its ApplicationsVat And Its Applications
Vat And Its Applications
 
VAT- Value Addition Tax
VAT- Value Addition TaxVAT- Value Addition Tax
VAT- Value Addition Tax
 
Taxation Solutions to Sqiud Loads.pptx
Taxation Solutions to Sqiud Loads.pptxTaxation Solutions to Sqiud Loads.pptx
Taxation Solutions to Sqiud Loads.pptx
 

Mehr von Mohammed Umair

Introduction to Marketing
Introduction to MarketingIntroduction to Marketing
Introduction to MarketingMohammed Umair
 
Introduction to retialing
Introduction to retialingIntroduction to retialing
Introduction to retialingMohammed Umair
 
International financial managment
International financial managmentInternational financial managment
International financial managmentMohammed Umair
 
Fundamentals of Accounting
Fundamentals of AccountingFundamentals of Accounting
Fundamentals of AccountingMohammed Umair
 
Overview of capital markets
Overview of capital marketsOverview of capital markets
Overview of capital marketsMohammed Umair
 
Introduction to Human Resource Development
Introduction to Human Resource DevelopmentIntroduction to Human Resource Development
Introduction to Human Resource DevelopmentMohammed Umair
 
Introduction to Human Resource Management
Introduction to Human Resource ManagementIntroduction to Human Resource Management
Introduction to Human Resource ManagementMohammed Umair
 
Human Resource Planning
Human Resource PlanningHuman Resource Planning
Human Resource PlanningMohammed Umair
 
Training & development
Training & developmentTraining & development
Training & developmentMohammed Umair
 
Introduction to investments
Introduction to investmentsIntroduction to investments
Introduction to investmentsMohammed Umair
 
Fundamental analysis and technical analysis
Fundamental analysis and technical analysisFundamental analysis and technical analysis
Fundamental analysis and technical analysisMohammed Umair
 
Deductions from gross total income
Deductions from gross total incomeDeductions from gross total income
Deductions from gross total incomeMohammed Umair
 
Eating non veg permitted or prohibitted
Eating non veg permitted or prohibittedEating non veg permitted or prohibitted
Eating non veg permitted or prohibittedMohammed Umair
 
Income from business and profession
Income from business and professionIncome from business and profession
Income from business and professionMohammed Umair
 
Introduction Entrepreneurship
Introduction EntrepreneurshipIntroduction Entrepreneurship
Introduction EntrepreneurshipMohammed Umair
 

Mehr von Mohammed Umair (20)

Financial Markets
Financial MarketsFinancial Markets
Financial Markets
 
Introduction to Marketing
Introduction to MarketingIntroduction to Marketing
Introduction to Marketing
 
Introduction to retialing
Introduction to retialingIntroduction to retialing
Introduction to retialing
 
International financial managment
International financial managmentInternational financial managment
International financial managment
 
Women in business
Women in businessWomen in business
Women in business
 
Fundamentals of Accounting
Fundamentals of AccountingFundamentals of Accounting
Fundamentals of Accounting
 
Overview of capital markets
Overview of capital marketsOverview of capital markets
Overview of capital markets
 
Introduction to Human Resource Development
Introduction to Human Resource DevelopmentIntroduction to Human Resource Development
Introduction to Human Resource Development
 
Introduction to Human Resource Management
Introduction to Human Resource ManagementIntroduction to Human Resource Management
Introduction to Human Resource Management
 
Human Resource Planning
Human Resource PlanningHuman Resource Planning
Human Resource Planning
 
Training & development
Training & developmentTraining & development
Training & development
 
Work place
Work placeWork place
Work place
 
Introduction to investments
Introduction to investmentsIntroduction to investments
Introduction to investments
 
Fundamental analysis and technical analysis
Fundamental analysis and technical analysisFundamental analysis and technical analysis
Fundamental analysis and technical analysis
 
Financial management
Financial management Financial management
Financial management
 
Deductions from gross total income
Deductions from gross total incomeDeductions from gross total income
Deductions from gross total income
 
Marketing management
Marketing managementMarketing management
Marketing management
 
Eating non veg permitted or prohibitted
Eating non veg permitted or prohibittedEating non veg permitted or prohibitted
Eating non veg permitted or prohibitted
 
Income from business and profession
Income from business and professionIncome from business and profession
Income from business and profession
 
Introduction Entrepreneurship
Introduction EntrepreneurshipIntroduction Entrepreneurship
Introduction Entrepreneurship
 

Kürzlich hochgeladen

Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...lizamodels9
 
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service BangaloreCall Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangaloreamitlee9823
 
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...Sheetaleventcompany
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentationuneakwhite
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperityhemanthkumar470700
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxWorkforce Group
 
Malegaon Call Girls Service ☎ ️82500–77686 ☎️ Enjoy 24/7 Escort Service
Malegaon Call Girls Service ☎ ️82500–77686 ☎️ Enjoy 24/7 Escort ServiceMalegaon Call Girls Service ☎ ️82500–77686 ☎️ Enjoy 24/7 Escort Service
Malegaon Call Girls Service ☎ ️82500–77686 ☎️ Enjoy 24/7 Escort ServiceDamini Dixit
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with CultureSeta Wicaksana
 
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...lizamodels9
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsP&CO
 
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Falcon Invoice Discounting
 
Business Model Canvas (BMC)- A new venture concept
Business Model Canvas (BMC)-  A new venture conceptBusiness Model Canvas (BMC)-  A new venture concept
Business Model Canvas (BMC)- A new venture conceptP&CO
 
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service NoidaCall Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service Noidadlhescort
 
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort ServiceEluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort ServiceDamini Dixit
 
Falcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investorsFalcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investorsFalcon Invoice Discounting
 
Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876
Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876
Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876dlhescort
 
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...amitlee9823
 
Call Girls In Nangloi Rly Metro ꧂…….95996 … 13876 Enjoy ꧂Escort
Call Girls In Nangloi Rly Metro ꧂…….95996 … 13876 Enjoy ꧂EscortCall Girls In Nangloi Rly Metro ꧂…….95996 … 13876 Enjoy ꧂Escort
Call Girls In Nangloi Rly Metro ꧂…….95996 … 13876 Enjoy ꧂Escortdlhescort
 

Kürzlich hochgeladen (20)

Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024
 
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
Russian Call Girls In Gurgaon ❤️8448577510 ⊹Best Escorts Service In 24/7 Delh...
 
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service BangaloreCall Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
Call Girls Hebbal Just Call 👗 7737669865 👗 Top Class Call Girl Service Bangalore
 
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
Call Girls Zirakpur👧 Book Now📱7837612180 📞👉Call Girl Service In Zirakpur No A...
 
Uneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration PresentationUneak White's Personal Brand Exploration Presentation
Uneak White's Personal Brand Exploration Presentation
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperity
 
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabiunwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
unwanted pregnancy Kit [+918133066128] Abortion Pills IN Dubai UAE Abudhabi
 
Cracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptxCracking the Cultural Competence Code.pptx
Cracking the Cultural Competence Code.pptx
 
Malegaon Call Girls Service ☎ ️82500–77686 ☎️ Enjoy 24/7 Escort Service
Malegaon Call Girls Service ☎ ️82500–77686 ☎️ Enjoy 24/7 Escort ServiceMalegaon Call Girls Service ☎ ️82500–77686 ☎️ Enjoy 24/7 Escort Service
Malegaon Call Girls Service ☎ ️82500–77686 ☎️ Enjoy 24/7 Escort Service
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
Call Girls From Pari Chowk Greater Noida ❤️8448577510 ⊹Best Escorts Service I...
 
Value Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and painsValue Proposition canvas- Customer needs and pains
Value Proposition canvas- Customer needs and pains
 
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
Unveiling Falcon Invoice Discounting: Leading the Way as India's Premier Bill...
 
Business Model Canvas (BMC)- A new venture concept
Business Model Canvas (BMC)-  A new venture conceptBusiness Model Canvas (BMC)-  A new venture concept
Business Model Canvas (BMC)- A new venture concept
 
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service NoidaCall Girls In Noida 959961⊹3876 Independent Escort Service Noida
Call Girls In Noida 959961⊹3876 Independent Escort Service Noida
 
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort ServiceEluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
Eluru Call Girls Service ☎ ️93326-06886 ❤️‍🔥 Enjoy 24/7 Escort Service
 
Falcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investorsFalcon Invoice Discounting: The best investment platform in india for investors
Falcon Invoice Discounting: The best investment platform in india for investors
 
Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876
Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876
Cheap Rate Call Girls In Noida Sector 62 Metro 959961乂3876
 
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
Call Girls Kengeri Satellite Town Just Call 👗 7737669865 👗 Top Class Call Gir...
 
Call Girls In Nangloi Rly Metro ꧂…….95996 … 13876 Enjoy ꧂Escort
Call Girls In Nangloi Rly Metro ꧂…….95996 … 13876 Enjoy ꧂EscortCall Girls In Nangloi Rly Metro ꧂…….95996 … 13876 Enjoy ꧂Escort
Call Girls In Nangloi Rly Metro ꧂…….95996 … 13876 Enjoy ꧂Escort
 

Indirect taxes

  • 2. Difference between direct and indirect taxes Point of difference DIRECT TAX INDIRECT TAX Incidence & Impact A tax is said to be direct ‘when impact and Incidence of a tax are on one and same person. If impact of tax is on one person and incidence on the another, the tax is called ‘indirect’ Burden Direct tax is imposed on the individual organisation and burden of tax cannot be shifted to others. Indirect tax is imposed on commodities and allows the tax burden to shift. Viability of payment Direct taxes are lesser burden then indirect taxes to people as direct taxes are based income earning ability of people. Indirect taxes are borne by the consumers of commodities and services irrespective of financial ability as the MRP includes all taxes. Administra tive viability The administrative cost of collecting direct taxes is more and improper administration may result in tax evasion. Cost of collecting indirect are taxes is very less as indirect taxes are wrapped up in prices of goods and services and cannot be evaded Collected from someone or
  • 3. Classification of TAXES •DIRECT TAX • INCOME TAX • CORPORATION TAX • PROPERTY TAX • INHERITANCE TAX • GIFT TAX • WEALTH TAX •INDIRECT TAXES • CENTRAL EXCISE • CENTRAL SALES TAX • CUSTOMS DUTY • SERVICE TAX • OCTROI ETC. • VALUE ADDED TAX (VAT) • SECURITIES TRANSACTION TAX (STT)
  • 4. Levy of taxes CENTRAL GOVERNMENT • INCOME TAXES(EXCEPT ON AGRICULTURE) • CUSTOMS DUTY • EXCISE DUTY (EXCEPT ON LIQUOR) STATE GOVERNMENT • TAX ON AGRICULTURE • EXCISE ON LIQUOR • BOTH CST AND LST LOCAL AUTORITIES • OCTROI • MUNICIPAL TAXES • TAXES ON HOUSE PROPERTY
  • 5. Concept of Central Sales Tax (CST) • CST is an indirect tax as the burden falls on consumer • CST act came into force on 1.7.1957 • This act applies to whole of India, including J&K • It is levied by Central Government on TAXABLE TURNOVER of Inter-state sale of goods made by registered dealer in ordinary course of business. • It is payable in the state in which movement of Goods commences. • It is assessed, collected and administered by State Government.
  • 6. CENTRAL SALES TAX ACT-1956 CONDITIONS 1. There should be A dealer 2. Should be A registered dealer 3. He must carry on any business 4. Sale should take place 5. Sale may be to A regd or unregd buyer 6. The sale should be of goods. 7. The sale can be of also declared goods (goods of specific importance) 8. The sale should take place in course of inter state 9. The sales should not be within the same state. 10. The sale should not be outside India
  • 7. DEFINITIONS • DEALER U/S 2(b). He is A person one who is involved in the activities of buying, selling, distributing the goods directly or indirectly either for cash or for deferred payment ,for commission ,brokerage etc. DEALER INCLUDES 1. Local authorities ,co-operative societies, A company, HUF, association of persons, firms.. 2. Suppliers, broker, del creder, commissioner, etc. 3. An auctioneer(govt, agent, etc) REGISTERED DEALER SEC 7 • A person should register himself u/s 7 • The registration may be: • VOLUNTARY REGISTRATION OR • COMPULSORY REGISTRATION
  • 8. SALE -2(G) SALE INCLUDES • A transfer of goods for money • Transfer of goods for money’s worth • Transfer of goods on an agreement to pay on deferred system • Hire purchase system and installment system. POINTS TO BE REMEMBERED • Sale may be to a registered buyer or unregistered buyer. • Element of price is essential. • Free supply is not sale. • Quantity discount is not a sale. • Mortgage is not a sale. • Depot transfer is not a sale.
  • 9. GOODS-2(d) • Goods means any article, thing, commodity, and which is movable ,however goods • DOES NOT INCLUDE: Newspapers, actionable Claims, stocks, Shares, Securities. • DECLARED GOODS –SEC2(C) • Declared goods are goods of special importance.If declared goods are sold there are certain benefits which can be obtained by the dealer, which is not available for the ordinary goods. • Cereals ,Pulses, Coal Including Coke But Not Charcoal, Cotton Waste , Hand Made Garments, tobacco, Raw Tobacco, Cheroots Of Tobacco ,Jute, Oil Seeds, Cotton In Unmanufactured Form ,Crude Oil,sugar, khandsare Sugar, Aviation Turbine Fuel, refused Tobacco, Cigars ,Hides And Skins, Woven Fabrics Of Wool.
  • 10. INTER STATE SALE-SEC 3 • Once the goods are taken out of dealers place then final destination should be taken into consideration and not the route through which goods are transferred. BASIS OF CHARGE • When all these conditions are satisfied then CST will be levied AT SPECIFIED RATE ON TAXABLETURNOVER WHICH WILL BE BASED ON SALES AND NOT ON PROFITS.
  • 11. Rates of CST • Form C The sales tax on inter-state sale is 4% or the applicable sales tax rate for sale within the State whichever is lower if the sale is to a dealer registered under CST. • Form D Sale to government is taxable @ 4% or applicable sales tax rate for sale within the State whichever is lower. • Form E1 This form is issued by the dealer who makes the first inter-state sale during movement of goods from one State to another. • Form E2 This form is issued by the second or the subsequent seller when the goods move from one state to another in a series of inter-state sales by transfer of documents of title. • Form F This form is issued when goods are dispatched to another state as a consignment or to the branch of a dealer in another State. The CST is not payable if there is only inter-state stock transfer and there is no sale. • Form H This form is issued by an exporter for purchase of goods. The purchase of goods is for an export order or in pursuance of an export order. • Form I This form is issued by a dealer located in a Special Economic Zone (SEZ). No CST is levied when sales is made to a dealer located in SEZ.
  • 12. Particulars Amount Price or value of Goods Sold XXX Less: Goods rejected/ Returns XX Net Sales XXX Less:  Discounts  Insurance charges at request of Buyer  Transportation and Freight charges  Installation charges Balance XXX Add: Packing charges Central Excise Duty Insurance charges (borne by seller) Weighing charges Aggregate Sale Price XXX Less: CST (Aggregation of Sale price x Rate of tax / 100+Rate of Tax XX Taxable turn Over XXX
  • 13. Value Added Tax • The value added tax was introduced as an indirect tax into the Indian taxation system from 1 April 2005. • The existing General Sales Tax Laws were replaced with new Value Added Tax Acts . • VAT is a tax, which is charged on the “Increase in Value” of good and services at each stage of production and circulation. • It is charged by registered VAT businesses
  • 14. Rate of TAX (VAT) • Rate of Tax: Schedule ‘A’ – Essential Commodities (Tax free)- Nil Schedule ‘B’ – Gold, Silver, Precious Stones, Pearls etc. - 1% Schedule ‘C' – Declared Goods and other specified goods - 4% Other goods w.e.f. 1/5/10 - 5% Schedule ‘D’ – Foreign Liquor, Country Liquor, Motor Spirits, etc. - At specified rates Schedule ‘E’ – All other goods (not covered by A to D) - 12.5%
  • 15. Calculation of VAT Calculation of VAT (tax @10%) Amount Purchase price 200 Tax paid during purchase (Rs. 20 [input tax]—10% on 200) Selling price 250 Tax collected on resale (Rs. 25[output tax]—10% on 250) VAT payable (Output tax – Input Tax) Rs. 5 (25-20) Total tax collected by the Government  At the time of purchase by the dealer----Rs. 20  At the time of resale by the dealer---------Rs. 05  Total---------------------------------------------------- Rs. 25
  • 16. CENTRAL EXCISE ACT • The law of Central Excise duties is governed by the following : • Central Excise Act 1994 • Central Excise tariff Act 1985 • Central Excise Rules ,1944
  • 17. • Central Excise Act ,1994 • This is the basic law related to the levy and collection of duties of central excise. However this Act does not contain the rate at which duties are imposed. • Central Excise Tariff Act ,1985 • This Act classifies various goods on which central excise duties are levied and prescribes the rates at which the duty is payable. • Central Excise Rules ,1944 • All manufacturers of excisable goods are required to register under these rules .The registration is valid as long as production activity continues and no renewals are necessary
  • 18. Taxable event for central excise duty Taxable event for charge of duty of central excise is the manufacturer or production of goods in India. In this context ,the Supreme Court has observed:  Excise duty is not directly on the goods, but manufactured thereof. Though both excise duty and sales duty levied with reference to goods, the two are very different imposts.  In one case, the imposition is on the act of manufactured or production, while in the other it is on the act of sale.
  • 19. Liability for central excise For condition must be present for the charge of central excise duty: 1. 1.The duty is on goods 2. 2.The goods must be excisable 3. 3 .The goods must be manufactured or produced 4. 4.Such manufacture or production must be take place in India
  • 20. 1.GOODS For an item to be considered goods for the purpose of the levy of central excise duty ,it must satisfy two requirements: Movability Goods must be movable. Duty cannot be levied on immovable property .Central excise duty cannot imposed on plant and machinery Marketability Goods must be marketable .The goods must be known in the market and must be capable of being bought or sold 2.Excisable goods  For the liability of duty of central excise to arise, the item in question should not only be goods it should also be excisable goods.  A goods become excisable if and only if it is mentioned in the Central Excise Tariff Act 1985
  • 21. 3.Goods must be manufactured or produced The third condition that must be satisfied for becoming liable to pay duties of central excise is that the goods must be manufactured or produced. 4. Manufactured or production must in India  Finally ,for the liability to pay central excise duty to arise the goods must be manufactured or produced in India. 5. Who is liable to pay central excise duties?  The central excise duty is a tax on manufacture or production of goods. Hence, the liability to pay excise duty lies on manufacturer or the producer
  • 22. Basis for valuation of goods 1. Specific duty 2. Tariff duty 3. Maximum retail price 4. Ad -valorem basis
  • 23. Basis for valuation of goods The duty of central excise is charged on four bases: • 1.Specific duty • 2.Tariff duty • 3.Maximum retail price • 4.ad -valorem basis
  • 24. 1.Specific duty • It is the duty payable on the basis of some physical feature of the product unit like weight, length, volume, thickness, etc. • Some of the goods on which duty is charged on the basis are as follows item Basis Cigarette Length Matches Box of 100 Sugar Quintal Cement Per tonne 2.Tariff value 1. The government has the power to declare a value on the basis of which duty of central excise will be charged. 2. When the government declare the value, the duty is charged on the value and the actual value of the goods is ignored.
  • 25. 3.MRP –based valuation Some manufactures had started the practice of central excise by resorting to some questionable practices. In order to check these malpractices, a new basis of valuation was introduced, that is, the maximum retail price(MRP)-based valuation. E.g.: television sets, DVD players, Cosmetics, Toilet preparations and chocolates 4.Ad Valorem duty The first three bases of valuation are applied for only a few goods. In a large majority of cases the duty of central excise is payable on the basis of the value of the goods, called the assessable value.
  • 26. Meaning of customs duty 1. Duty or tax, which is levied by central govt. 2. Collected from the importer or exporter of goods. 3. Duties are usually “ad –valorem rates” 4. “Ad –valorem rates” 5. Duty as a percentage of the value of goods
  • 27. Scope and coverage of customs law 1. Basic act for levy and collection of customs duty. 2. Contain various provisions relating to imports and exports of goods and merchandize as well as baggage of persons. 3. The main purpose of customs act, 1962. 4. Prevention of illegal imports and exports. 5. The act extends to the whole of the India. 6. Two acts. 1. The customs act, 1962 2. The customs tariff act, 1975
  • 28. Objects of customs duty • The customs duty is levied, primarily, for the following purpose: 1. To raise revenue. 2. To regulate imports of foreign goods into India. 3. To conserve foreign exchange, regulate supply of goods into domestic market. 4. To provide protection to the domestic industry from foreign competition by restricting import of selected goods and services, import licensing, import quotas, and outright import ban.