TAXATION IN INDIA

These taxes are applied by both central govt. and state government.

CENTRAL GOVERNMENT TAX

1.      Direct Tax

·         Income Tax: levied on income

·         Wealth Tax: levied on asset

·         Corporation Tax: levied on profit produced by producers

2.      Indirect Tax

·         Central Excise Duty:  levied on the production made by producers

·         Custom Duty: Import/ Export of any item

·         Service Tax: Any of the service

3.      Other Tax

·         Tax on sale and purchase of newspaper and advertisement

·         Tax on goods and passengers carried by train, sea and air (called terminal tax)

·         Tax on interstate transportation of goods

STATE GOVERNMENT TAX

1.      Direct Tax

·         Agriculture Income Tax: levied on land

·         Land Revenue

·         Professional Tax: levied on professional institutes

2.      Indirect Tax

·         State Excise Duty:

(On medical, narcotics, alcohol and toilet preparations)

·         Electricity Tax

·         Entertainment Tax

3.      Other Tax

·  Tax on Sale and Purchase of goods (other than newspapers and advertisement)

·         Tax on building, vehicle and animal

·         Tax on Transportation between district