Professional Documents
Culture Documents
com
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
military defense
enforcement of law and order
redistribution of wealth
economic infrastructure roads, ports etc
social welfare
social infrastructure like education, health etc
social security measures like pensions for the elderly,
unemployment benefits
IASEXAMPORTAL .COM
www.iasexamportal.com
India has a well developed tax structure. Being a federal country, the
authority to levy taxes is divided between the central government
and the state governments. The central government levies direct
taxes such as personal income tax and corporate tax, and indirect
taxes like customs duties, excise duties and central sales tax (CST).
CST is assigned to the States in which it is collected. (Art.269). The
states have the constitutional power to levy sales tax apart from
various other local taxes like entry tax, octroi, etc.
IASEXAMPORTAL .COM
www.iasexamportal.com
Service tax was first imposed in 1994. Today the rate is 12% and a 3%
education cess is additionally imposed. More than 100 services are
being taxed.
The service sector has emerged as an important area of economic
activity. Reasons for taxing services
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
Goods and Services Tax is a multi-point sales tax with set off for tax
paid on purchases of inputs. There is no cascading (tax on tax) effect
as there is deduction or credit mechanism for taxes paid for the
inputs. The tax is levied on the value added and on consumption only.
Total burden of the tax is exclusively borne by the domestic
consumer. Exports are not subject to GST.
The goods and service tax (GST) is proposed to be a comprehensive
indirect tax levy on manufacture and sale of goods as well as services
at a national level. Integration of goods and services taxation would
give India a world class tax system and improve tax collections. It
would end the long standing distortions of differential treatments of
manufacturing and service-
IASEXAMPORTAL .COM
www.iasexamportal.com
-sector. The introduction of goods and services tax will lead to the
abolition of taxes such as octroi, Central sales tax, State level sales
tax, entry tax, etc and eliminate the cascading effects tax on tax.
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
The Union Government has the exclusive power to levy excise duty
on the manufacture or production of the following:
Petroleum Crude
High Speed diesel
Petrol
Natural Gas
Aviation Turbine Fuel
Tobacco and Tobacco Products
The State Governments shall have the power to levy tax on the sale
(other than in the course of inter-state trade or commerce) of
petroleum crude, high speed diesel,
IASEXAMPORTAL .COM
www.iasexamportal.com
petrol, natural gas, aviation turbine fuel and alcoholic liquor for
human consumption. In Article 249 The Parliament has been vested
with the power to make laws pertaining to GST on behalf of the state
Legislature in circumstances of national interest. The power to make
such laws would be pursuant to a resolution passed by the Council of
States supported by not less than a two-thirds majority of the
members present and voting. Power of Parliament to make laws on
subjects in State List in the case of Emergency Article 250.
The Parliament has been vested with the power to makes laws
pertaining to GST on behalf of the State Legislature when there is a
proclamation of Emergency.
IASEXAMPORTAL .COM
www.iasexamportal.com
The GST Council while being guided by the need for a harmonized structure
goods and services tax and for the development of a harmonised national
market for goods and services shall make recommendations to the Union
and the States on:
Taxes, cesses and surcharges levied by the Union and the States and local
bodies which may be subsumed within the GST
IASEXAMPORTAL .COM
www.iasexamportal.com
compliance increases
equity improves
investment flows
IASEXAMPORTAL .COM
www.iasexamportal.com
Simplification of procedures
Strengthening of administration
Widening of the tax base to include more tax payers in the tax net
Exemptions are gradually being withdrawn
MAT was introduced for the zero tax companies
The Direct Tax Code of 2010 is meant to replace the outdated
Income Tax Code of 1961.
IASEXAMPORTAL .COM
www.iasexamportal.com
Reduction in the peak tariff rates- 10% is the peak customs duty
today which was more than a 90% reduction since 1991.
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
It is the tax on the gains made from buying and selling assets like
land, shares etc.
If the gain is made in the assets held for over three year (one year for
shares), it is called long term capital gain and taxed. For shares, there
is no long term capital gains tax. For short term capital gains (less
than one year), it is 15% for shares.
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
The Direct Taxes Code seeks to consolidate the law relating to direct
taxes. The Bill will replace the Income Tax Act, 1961, and the Wealth
Tax Act, 1957. The Bill widens tax slabs, and lowers corporate tax
rates. It removes a number of exemptions and grandfathers some
others.
The Bill replaces the Income Tax Act, 1961 and the Wealth Tax Act,
1957.
The Bill widens income tax slabs for individuals income between
Rs 2 lakh to Rs 5 lakh will be taxed at 10%, between Rs 5 lakh and
Rs 10 lakh at 20%, and that over Rs 10 lakh at 30%.
IASEXAMPORTAL .COM
www.iasexamportal.com
IASEXAMPORTAL .COM
www.iasexamportal.com
Contact Us at:
http://iasexamportal.com/civilservices/contact-us
IASEXAMPORTAL .COM