Taxation in India: Difference between revisions

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Taxes in India are levied by the Central Government and the state governments.^[1] Some minor taxes are also levied by the local authorities such as the Municipality.^[2]

The authority to levy a tax is derived from the

From 2015 to currently, the gross tax collection of the Centre from service tax has amounted in excess of ₹2.10 trillion (US$25 billion).[11]

Central Excise

In 2015-2016, the gross tax collection of the Centre from excise amounted to ₹2.80 trillion (US$34 billion).^[11]

1. Central Excise Act, 1944, which imposes a duty of excise on goods manufactured or produced in India;
2. Central Sales Tax, 1956, which imposes sales tax on goods sold in inter-state trade or commerce in Indisale of property situated within the state^[12]

In the 2016 Union budget of India, an excise of duty of 1% without |date=4 March 2016 }}</ref> The government had earlier proposed an excise duty in the Budget 2011-12, which had to be rolled back after massive protests by jewellers.^[13]

• Central Excise Tariff Act, 1985^[14]
• Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000^[15]

Constitutionally established scheme of taxation

Article 246

Separate heads of taxation are no head of taxation in the Concurrent List (Union and the States have no concurrent power of taxation).[18] The list of thirteen Union heads of taxation and the list of nineteen State heads are given below:^[18]

Central government of India

^[19]

State governments

Central Board of Excise and Customs

Central Board of Excise and Customs (CBEC) is a part of the Department of Revenue under the Ministry of Finance, Government of India. It deals with the tasks of formulation of policy concerning levy and collection of Customs & Central Excise duties and Service Tax, prevention of smuggling and administration of matters relating to Customs, Central Excise, Service Tax and Narcotics to the extent under CBEC's purview. The Board is the administrative authority for its subordinate organizations, including Custom Houses, Central Excise and Service Tax Commissionerates and the Central Revenues Control Laboratory.^{[citation needed]}

Organisational Structure

The CBEC is headed by CBEC Chairman and also comprises six members. The Chairperson holds the rank of Special Secretary to Government of India while the members rank of Additional Secretary to Government of India.^[20]

Collections

In 2015-2016, the gross tax collection of the Centre amounted to ₹14.60 trillion (US$170 billion).^[4][11]

^[21]

Income Tax

Goods and Services Tax

Goods and Services Tax is a indirect tax collected on supply of goods or service.

• Central Tax: Portion of Tax to central government on intra state sales.
• State Tax: Portion of Tax to state on intra state sales.
• Integrate Tax: tax for inter state sales.

Custom Duty

Custom Duty is a indirect tax for goods when import or export. When import goods import from outside in the tax known as import custom duty. we goods export to outside India is known as export custom duty. The tax collected by

Local Body Taxes

"Local Body Tax", popularly known by its abbreviation as "LBT", is the tax imposed by the

Property tax, or 'house tax,' is a local tax on buildings, along with appurtenant land, and imposed on Possessor (certainly, not true custodian of property as per 1978, 44th amendment of constitution). It resembles the US-type wealth tax and differs from the excise-type UK rate. The tax power is vested in the states and it is delegated by law to the local bodies, specifying the valuation method, rate band, and collection procedures. The tax base is the annual rental value (ARV) or area-based rating. Owner-occupied and other properties not producing rent are assessed on cost and then converted into ARV by applying a percentage of cost, usually six percent. Vacant land is generally exempt. Central government properties are exempt. Instead a 'service charge' is permissible under executive order. Properties of foreign missions also enjoy tax exemption without an insistence for reciprocity. The tax is usually accompanied by a number of service taxes, e.g., water tax, drainage tax, conservancy (sanitation) tax, lighting tax, all using the same tax base. The rate structure is flat on rural (panchayat) properties, but in the urban (municipal) areas it is mildly progressive with about 80% of assessments falling in the first two slabs.[25]

See also

• History of the British salt tax in India
• Indian tax forms
• Investigation Division of the Central Board of Direct Taxes
• States of India by tax revenues
• Union budget of India
• Value-added taxation in India

References

External links

Wikimedia Commons has media related to Taxation in India.

• Union budget and Economic Survey
• Department of Public Expenditure and Reform
• Indian Income Tax Department
• Electronic Filing of Income Tax returns