Taxes are the government’s constitutional approach to collect money from taxpayers in return for public infrastructure and national expenditure.
The Central and State government implements the tax structure in compliance with the laws and procedures put forth by the Constitution of India.
Failure to pay
Failure to pay taxes could be penalizing and incriminating for evaders.
Any tax system introduced by the government must abide by a reasonable law stated in the Constitution.
It must also follow the approval of the Parliament or the State Legislature.
Notable taxes implemented by the Government of India include –
Service Tax –
Customers bear this tax in return for services they enjoy from firms and service companies.
Service tax can be levied only on taxable services provided by the company.
Income Tax –
The government imposes a tax on individuals and companies based on their gross income and profits generated.
Income divides the income tax for individuals into slabs based on their income.
Goods and Service Tax –
The indirect tax levied on the purchase and acquisition of taxable products and services.
The revenue generated is usually split between the Central and State governments.
Custom Duty –
The import and export of certain goods in India involve indirect taxes with specific rates depending on the items.
Local Body Taxes –
These taxes pertain to the consumption and sale of specific goods and services within a State.
It may vary between different states.